5.1 This guide reduces the time and effort to communicate the findings of project impact studies and improves the quality of communication between those who measure economic impacts and those who evaluate and interpret them.5.2 Following the guide assures the user that relevant economic information on the project is included in a summary format that is understandable to both the preparer and user.5.3 Since the standard guide provides a consistent approach to reporting the economic impacts of projects, it facilitates the comparison of economic studies across projects and over time.5.4 The guide focuses on projects in construction and building-related research. It applies to government as well as private projects. And while the examples treat building-related projects, the guide is applicable to non-building-related projects as well.5.5 Building-sector users of this guide include building owners and managers, private-sector construction companies, research groups in building and construction industry trade associations, parties to public-sector construction projects, and government laboratories conducting building-related research.5.6 Use the guide to summarize the results of economic impact studies that use Practices E917 (Life-Cycle Costs), E964 (Benefit-to-Cost and Savings-to-Investment Ratios), E1057 (Internal Rate of Return and Adjusted Internal Rate of Return), E1074 (Net Benefits and Net Savings), E1121 (Payback), E1699 (Value Engineering/Value Analysis), and E1765 (Analytical Hierarchy Process for Multiattribute Decision Analysis).5.7 Use this guide in conjunction with Guide E1369 to summarize the results of economic impact studies involving natural or man-made hazards, or both, that occur infrequently but have significant consequences.5.8 Use the guide to summarize the impacts of projects that affect exclusively initial costs, benefits, or savings, as well as projects that affect life-cycle costs, benefits, or savings.NOTE 1: Examples of projects dealing exclusively with initial costs, benefits, or savings include design modifications or innovative construction practices that reduce labor or material costs, reduce construction duration, or increase construction productivity, but leave future costs, benefits, or savings unchanged.5.9 Use the guide to summarize the impacts of projects that affect parties that are internal to the organization preparing the summary as well as projects that affect not only the organization preparing the summary but also groups external to the organization.NOTE 2: Projects whose impacts are internal only correspond to situations where the organization preparing the summary bears all of the costs and receives all of the benefits or savings, or both, from the project. Examples include, but are not limited to, the use of innovative construction practices or alternative building materials, components, or systems that reduce initial costs or future costs, or both, to the building owner.NOTE 3: Projects with a public-sector component frequently have impacts that reach beyond the organization preparing the summary. Examples include, but are not limited to, building-related research conducted by government laboratories, projects aimed at mitigating the consequences of natural or man-made hazards, or both, that have the potential to cause collateral damage, and highway and bridge constructions that affect traffic patterns.5.10 There is no limitation to the use of the guide in facilitating communication between project analysts and project managers and other decision-makers. Substantial benefits from using the guide, however, are likely to come from its application in a large institution, such as a federal agency, where many projects are competing for funding, and a systematic presentation of results that can be compared across projects and agencies is needed to allocate efficiently scarce funds.1.1 This guide covers a generic format for summarizing the economic impacts of building-related projects.1.2 The guide provides technical persons, analysts, and researchers a tool for communicating project impacts in a condensed format to management and non-technical persons.1.3 The generic format described in this guide calls for a description of the significance of the project, the analysis strategy, a listing of data and assumptions, and a presentation of the key economic measures of project impact.1.4 This standard does not purport to address all of the safety concerns, if any, associated with its use. It is the responsibility of the user of this standard to establish appropriate safety, health, and environmental practices and determine the applicability of regulatory limitations prior to use.1.5 This international standard was developed in accordance with internationally recognized principles on standardization established in the Decision on Principles for the Development of International Standards, Guides and Recommendations issued by the World Trade Organization Technical Barriers to Trade (TBT) Committee.

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4.1 This practice recognizes that effectiveness, safety, and durability of an IRCCS depends not only on the quality of the materials, but also on the proper installation.4.2 Improper installation of an IRCCS will reduce its thermal effectiveness, cause fire risks and other unsafe conditions, and promote deterioration of the structure in which it is installed. Improper installation has the potential to create specific hazards that include: heat buildup in recessed lighting fixtures, deterioration of failure of electrical wiring components, and deterioration of wood structures and paint failure due to moisture accumulation.4.3 This practice provides directions for the installation of IRCCS materials in a safe and effective manner. Actual conditions in existing buildings will vary greatly.4.4 The user shall consult the manufacturer for application and installation methods.1.1 This practice has been prepared for use by the designer, specifier, and applicator of Interior Radiation Control Coating Systems (IRCCS) for use in building construction. The scope contains instructions related to the use and installation of IRCCS that are sprayed, rolled, or brush applied. Examples that this practice is intended to address include: (1) low emittance surfaces in vented building envelope cavities intended to retard radiant transfer across the vented airspace; (2) low emittance surfaces at interior building surfaces intended to retard radiant transfer to or from building inhabitants; and (3) low emittance surfaces at interior building surfaces intended to reduce radiant transfer to or from heating or cooling systems.FIG. 1 Typical Residential UseNOTE 1: Apply IRCCS to cover the exposed roof deck area including support structure directly connected to the roof deck (such as purlins, rafters, and top chord of the trusses). The low-emittance surface of the IRCCS must face the interior of the attic.FIG. 2 Typical Industrial, Commercial, and Agricultural UseNOTE 1: Apply the IRCCS to cover the entire interior surface area. The low-emittance surface of the IRCCS must face the interior of the building.1.2 This practice covers the installation process from pre-installation inspection through post-installation. It does not cover the production of the Interior Radiation Control Coating Materials.1.3 This practice is not intended to replace the manufacturer's installation instructions, but it shall be used in conjunction with such instructions. This practice is not intended to supersede local, state, or federal codes.1.4 This practice assumes that the installer possesses a good working knowledge of the application codes and regulations, safety practices, tools, equipment, and methods necessary for the installation of Interior Coating Materials. It also assumes that the installer understands the fundamentals of building construction that affect the installation of an IRCCS.1.5 When the installation or use of Interior Radiation Control Coating Materials, accessories, and systems pose safety or health problems, the manufacturer shall provide the user appropriate current information regarding any known problems associated with the intended use of the products and shall also provide direction on protective measures to be employed for safe utilization. The user shall establish appropriate safety and health practices and determine the applicability of regulatory requirements prior to use.1.6 This standard does not purport to address all of the safety concerns, if any, associated with its use. It is the responsibility of the user of this standard to establish appropriate safety, health, and environmental practices and determine the applicability of regulatory limitations prior to use. Specific precautionary statements are contained in Sections 5 and 7.1.7 This international standard was developed in accordance with internationally recognized principles on standardization established in the Decision on Principles for the Development of International Standards, Guides and Recommendations issued by the World Trade Organization Technical Barriers to Trade (TBT) Committee.

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5.1 Measuring cost risk enables owners of buildings and other constructed projects, architects, engineers, and contractors to measure and evaluate the cost risk exposures of their construction projects.3 Specifically, cost risk analysis (CRA) helps answer the following questions:5.1.1 What are the probabilities for the construction contract to be bid above or below the estimated value?5.1.2 How low or high can the total project cost be?5.1.3 What is the appropriate amount of contingency to use?5.1.4 What cost elements have the greatest impact on the project’s cost risk exposure?5.2 CRA can be applied to a project's contract cost, construction cost (contract cost plus construction change orders), and project cost (construction cost plus owner's cost), depending on the users’ perspectives and needs. This practice shall refer to these different terms generally as “project cost.”1.1 This practice covers a procedure for measuring cost risk for buildings and building systems and other constructed projects, using the Monte Carlo simulation technique as described in Guide E1369.1.2 A computer program is required for the Monte Carlo simulation. This can be one of the commercially available software programs for cost risk analysis, or one constructed by the user.1.3 This standard does not purport to address all of the safety concerns, if any, associated with its use. It is the responsibility of the user of this standard to establish appropriate safety, health, and environmental practices and determine the applicability of regulatory limitations prior to use.1.4 This international standard was developed in accordance with internationally recognized principles on standardization established in the Decision on Principles for the Development of International Standards, Guides and Recommendations issued by the World Trade Organization Technical Barriers to Trade (TBT) Committee.

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4.1 Uses—This practice is intended for use on a voluntary basis by parties who wish to conduct a BEPA on a building. The process defined in this practice involves the collection of building energy consumption information, some of which may be collected as part of E2018 PCA or E1527 ESA. The practice is intended primarily as an approach to conducting a standardized inquiry designed to identify representative building energy performance in connection with a commercial property involved in a real estate transaction. This practice is intended to reflect a commercially practical and reasonable inquiry.4.1.1 A number of states including CA, CO, WA and NJ, and more than three dozen cities, county and municipal governments, including Ann Arbor, MI, Atlanta, GA, Austin, TX, Berkeley, CA, Bloomington, MN, Boston, MA, Boulder, CO, Cambridge, MA, Chicago, IL, Chula Vista, CA, Columbus, OH, Denver, CO, Des Moines, IA, Edina, MN, Evanston, IL, Fort Collins, CO, Indianapolis, IN, Kansas City, MO, Los Angeles, CA, Miami, FL, Minneapolis, MN, Montgomery County, MD, New York City, NY, Orlando, FL, Philadelphia, PA, Pittsburgh, PA, Portland, ME, Portland, OR, Reno, NV, Salt Lake City, UT, San Diego, CA, San Francisco, CA, San Jose, CA, Seattle, WA, South Portland, ME, St. Louis, MO, St. Louis Park, MN, St. Paul, MN and Washington, D.C. have building energy performance benchmarking and reporting policies. Users in these locations must comply with applicable ordinances and regulations.4.2 Clarifications on Use: 4.2.1 Use in Conjunction with E2018 PCA or E1527 ESA—This practice, when added as a supplemental scope of work to a E2018 PCA or a E1527 ESA, is designed to assist the user and consultant in developing information about energy consumption in a building or buildings involved in a real estate transaction. The BEPA also has utility to a wide range of persons, including those who may not be involved in a real estate transaction.4.2.2 Independent Use—This practice may also be used independently of any other building assessment to determine building energy performance.4.2.3 Site-Specific—This practice is property-specific in that it relates to existing building energy performance. The practice is not intended to replace E2018 PCA or E1527 ESA conducted by a qualified consultant or individual, but rather to supplement it.4.3 Who May Conduct—A BEPA shall be performed by a qualified consultant or individual (hereafter referred to as the “Consultant”) with the education, training and experience necessary to perform the requirements of this practice (see Appendix X4). No practical approach can be designed to eliminate the role of professional judgment and the value and need for experience in the individual performing the inquiry. The professional experience of the Consultant is, consequently, important to the performance of this BEPA.4.4 Additional Services—As set forth in Section 13, additional services may be contracted for between the user and the Consultant. Such additional services may include issues not included within the scope of this practice. For example, the user or Consultant may wish to benchmark the building against similar buildings in the portfolio or in the same geographical area or identify select green building attributes that may contribute to the energy efficiency performance and/or the building’s valuation.4.4.1 Benchmarking Additional Service—Any benchmarking system selected relies on critical data in generating its output, so the validity of the data collection process directly impacts the integrity and usefulness of the benchmarking system’s results. Utilization of this practice and adoption of its data collection approach can serve to enhance the integrity of the benchmarking process for all transactional stakeholders in a standardized, fully transparent, uniform, and consistent manner. Notwithstanding, building energy consumption information should always be evaluated within the context in which it is collected and building energy consumption numbers should not be used without conveying this context. (Refer to Appendix X1 for additional information.)4.5 Principles—The following principles are an integral part of this practice and are intended to be referred to in resolving any ambiguity or exercising such discretion as is accorded the user or Consultant in performing a BEPA.4.5.1 Uncertainty Not Eliminated in BEPA—No BEPA practice can wholly eliminate uncertainty in determining the myriad of variables that can impact the energy consumption of a building on a property. The BEPA is intended to reduce, but not eliminate, uncertainty regarding the impact such variables can have on the energy consumption of a building.4.5.2 Not Exhaustive—This practice is not meant to be an exhaustive assessment. There is a point at which the cost of information obtained or the time required to gather it outweighs the usefulness of the information and, in fact, may be a material detriment to the orderly completion of a real estate transaction. One of the purposes of this practice is to identify a balance between the competing goals of limiting the costs and time demands inherent in performing a BEPA and the reduction of uncertainty about unknown conditions resulting from collecting additional information.4.5.3 Level of Inquiry is Variable—Not every building will warrant the same level of assessment. The appropriate level of assessment will be guided by the type of property subject to assessment and its complexity, the needs of the user, and the information already available or developed in the course of the inquiry.4.6 Rules of Engagement—The contractual and legal obligations between a Consultant and a user (and other parties, if any) are outside the scope of this practice. No specific legal relationship between the Consultant and user was considered during the preparation of this practice.1.1 Purpose—The purpose of this standard is to define a commercially useful practice in the United States of America for conducting a building energy performance assessment (BEPA) on a building involved in a commercial real estate transaction and subsequent reporting of the building energy performance information. The practice is intended to provide a methodology to the user for the collection, compilation, analysis, and reporting of building energy performance information associated with a commercial building. The practice may be used independently or as a voluntary supplement to Guide E2018 for property condition assessments or Practice E1527 for Phase I environmental site assessments. Utilization of this practice and performance of a BEPA is voluntary. If the property owner (for example, the seller) is unwilling or unable to provide building energy consumption and cost information, a BEPA cannot be performed.1.2 Building Energy Performance—This practice defines building energy performance as the building’s total annual energy consumption and cost for heating, cooling, electricity, and other related uses. Energy consumption, for example, includes total electricity purchased; purchased or delivered steam, hot water, or chilled water; natural gas; fuel oil; coal; propane; biomass; or any other matter consumed as fuel and any electricity generated on site from renewable/alternative energy systems (for example, wind energy generator technology, fuel cells, microturbines or solar photovoltaic systems).1.3 Objectives—Objectives in the development of this practice are to: (1) define a commercially useful practice for collecting, compiling, and analyzing building energy performance information associated with a building involved in a commercial real estate transaction; (2) facilitate consistency in the collection, compilation, analysis, and reporting of building energy performance information as may be required under building benchmarking, labeling, disclosure, or mandatory auditing regulations; (3) supplement as needed a property condition assessment conducted in accordance with Guide E2018 or an environmental site assessment conducted in accordance with Practice E1527; (4) provide that the process for building energy performance data collection, compilation, analysis, and reporting is consistent, transparent, practical and reasonable; and (5) provide an industry standard for the conduct of a BEPA on a building involved in a commercial real estate transaction, subject to existing statutes and regulations which may differ in terms of scope and practice.1.4 Documentation—The scope of this practice includes data collection, compilation and reporting requirements. Documentation of all sources, records, and resources relied upon in the investigation is provided in the report.1.5 Considerations Outside the —The use of this practice is limited to the collection, compilation, and analysis of building energy performance information as defined by this practice for real estate transactions in the United States of America. While this information may be used to facilitate building benchmarking, labeling, rating or ranking, reporting of building energy performance information between a seller and a buyer or a landlord and a tenant on a voluntary basis or as may be required by building benchmarking, labeling, disclosure or mandatory auditing regulations applicable to the building, or any other use, such use is beyond the scope of this practice. This ASTM Standard Practice does not supersede existing statutes and regulations.1.6 Organization of This Practice—This practice has 13 sections and 11 appendices. The appendices are included for informational purposes only and are not part of the procedures prescribed in this practice.Section 1 Describes the scope of the practice.Section 2 Identifies referenced documents.Section 3 Provides terminology pertinent to the practice.Section 4 Discusses the significance and use of the practice.Section 5 Discusses the relationship between this practice and ASTM Guide E2018 or ASTM Practice E1527.Section 6 Describes the user's responsibilities under this practice.Section 7 Describes the BEPA process.Section 8 Describes the site visit and walk-through.Section 9 Discusses interviews with owner , operator, or key site manager.Section 10 Describes records collection for the BEPA process.Section 11 Provides the records analysis methodology for building energy consumption data.Section 12 Focuses on BEPA report preparation and reporting of building energy consumption information.Section 13 Identifies non-scope considerations.Appendix X1 Provides the legal background on federal, state, or local building energy consumption disclosure legislation and regulation.Appendix X2 Identifies building energy performance and sustainability labeling programs.Appendix X3 Discusses government and utility energy efficiency incentives and grants.Appendix X4 Provides guidance on suggested qualifications for the consultant conducting the BEPA.Appendix X5 Information that can be collected from the property owner/operator/key site manager.Appendix X6 Provides a recommended table of contents and report format for the BEPA.Appendix X7 Provides general property types with categories and subcategories that can impact building energy consumption.Appendix X8 Provides a general commercial building survey checklist.Appendix X9 Presents carbon emission estimation methodology associated with combustion processes related to energy consumption in a commercial building.Appendix X10 Provides common no-cost/low-cost energy saving measures for commercial buildings.Appendix X11 Provides illustrative example of building site energy consumption calculations.1.7 Units—The values stated in inch-pound units are to be regarded as the standard. The values given in parentheses are mathematical conversions to SI units that are provided for information only and are not considered standard.1.8 This practice cannot replace education or experience and should be used in conjunction with professional judgment. Not all aspects of this practice may be applicable in all circumstances. This ASTM standard practice is not intended to represent or replace the standard of care by which the adequacy of a given professional service must be judged, nor should this practice be applied without consideration of a building’s many unique aspects. The word “standard” in the title means only that the practice has been approved through the ASTM consensus process.1.9 Nothing in this practice is intended to create or imply the existence of a legal obligation for reporting of energy, performance, or other building-related information. Any consideration of whether such an obligation exists under any federal, state, local, or common law is beyond the scope of this practice.1.10 This standard does not purport to address all of the safety concerns, if any, associated with its use. It is the responsibility of the user of this standard to establish appropriate safety, health, and environmental practices and determine the applicability of regulatory limitations prior to use.1.11 This international standard was developed in accordance with internationally recognized principles on standardization established in the Decision on Principles for the Development of International Standards, Guides and Recommendations issued by the World Trade Organization Technical Barriers to Trade (TBT) Committee.

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5.1 The NB (NS) method provides a measure of the economic performance of an investment, taking into account all relevant monetary values associated with that investment over the investor’s study period. The NB (NS) measure can be expressed in either present value or equivalent annual value terms, taking into account the time value of money.5.2 The NB (NS) method is used to decide if a given project is cost effective and which size or design for a given purpose is most cost effective when no budget constraint exists.5.3 The NB (NS) method can also be used to determine the most cost effective combination of projects for a limited budget; that is, the combination of projects having the greatest aggregate NB (NS) and fitting within the budget constraint.5.4 Use the NB method when the focus is on the benefits rather than project costs.5.5 Use the NS method when the focus in on project savings (that is, reductions in project costs).1.1 This practice covers a recommended procedure for calculating and interpreting the net benefits (NB) and net savings (NS) methods in the evaluation of building designs and systems.1.2 The values stated in inch-pound units are to be regarded as standard. The values given in parentheses are mathematical conversions to SI units that are provided for information only and are not considered standard.1.3 This standard does not purport to address all of the safety concerns, if any, associated with its use. It is the responsibility of the user of this standard to establish appropriate safety, health, and environmental practices and determine the applicability of regulatory limitations prior to use.1.4 This international standard was developed in accordance with internationally recognized principles on standardization established in the Decision on Principles for the Development of International Standards, Guides and Recommendations issued by the World Trade Organization Technical Barriers to Trade (TBT) Committee.

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This specification covers the minimum performance and acceptance criteria for an air barrier (AB) material or system for framed walls of low-rise buildings with the service life of the building wall in mind. The provisions contained in this specification are intended to allow the user to design the wall performance criteria and increase AB specifications to accommodate a particular climate location, function, or design of the intended building. This specification focuses mainly on ABs for opaque walls. Other areas of the exterior envelope, such as roofs, floors, and interfaces between these areas are not included in this specification. Also not addressed here are air leakages into the wall cavity, that is, windwashing. Additionally, the specifications in this standard are not intended to be utilized for energy load calculations and are not based on an expected level of energy consumption.1.1 This specification covers minimum performances and specification criteria for an air barrier (AB) material or system for framed walls of low-rise buildings. The intended users are purchasers of the AB, specifiers of the AB and regulatory groups. The provisions contained in this specification are intended to allow the user to design the wall performance criteria and increase AB specifications to accommodate a particular climate location, function, or design of the intended building. Air barrier performance and specification minimums were selected with the service life of the building wall in mind.1.2 This specification focuses on ABs for opaque walls. Other areas of the exterior envelope, such as roofs, floors, and interfaces between these areas are not included in this specification.1.3 This specification does not address air leakage into the wall cavity, that is, windwashing. No standardized test has been developed that adequately identifies all of the influencing factors and measures the impact of this effect on the wall's thermal performance.1.4 The specifications in this standard are not intended to be utilized for energy load calculations and are not based on an expected level of energy consumption.1.5 The values stated in inch-pound units are to be regarded as standard. The values given in parentheses are mathematical conversions to SI units that are provided for information only and are not considered standard.1.6 The following safety hazards caveat pertains only to the test method portion, Annex A1, of this specification. This standard does not purport to address all of the safety concerns, if any, associated with its use. It is the responsibility of the user of this standard to establish appropriate safety, health, and environmental practices and determine the applicability of regulatory limitations prior to use.1.7 This international standard was developed in accordance with internationally recognized principles on standardization established in the Decision on Principles for the Development of International Standards, Guides and Recommendations issued by the World Trade Organization Technical Barriers to Trade (TBT) Committee.

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This specification covers the specifications, safety requirements, performance, design, practices, marking instructions and test methods for multi-story building external evacuation platform rescue systems (PRS) for emergency escape of persons who cannot use the normal means of egress to a safe area and for vertical transport of emergency responders. This specification is applicable only to PRSs that are permanently installed, designed for multi-cycle and repetitive use, and where descent is controlled to limit speed before arrival at a floor or landing zone. Conversely, this specification does not cover platform devices that are used primarily for purposes other than emergency evacuation and/or access, helicopters or other flying platforms, a PRS utilizing platforms that can be transported to or between buildings during operations, and a PRS using driving methods other than positive drive as drum and ropes.1.1 This specification covers the specifications, safety requirements, performance, design, practices, marking instructions and test methods for Multi-Story Building External Evacuation Platform Rescue Systems (PRS) for emergency escape of persons who cannot use the normal means of egress to a safe area and for transport of emergency responders vertically.1.2 This specification is applicable only to PRSs:1.2.1 Permanently installed;1.2.2 Designed for multi-cycle and repetitive use; and1.2.3 Where descent is controlled to limit speed before arrival at a floor or landing zone.1.3 This specification does not cover:1.3.1 Platform devices that are used primarily for purposes other than emergency evacuation or access, or both;1.3.2 Helicopters or other flying platforms;1.3.3 Any other devices covered under/within ASME A17.1;1.3.4 A PRS utilizing platform(s) that can be transported to or between buildings during operations; and1.3.5 A PRS using driving methods other than positive drive as drum and ropes.1.4 Operation of a PRS is limited to trained and authorized operators.1.5 The values stated in SI units are to be regarded as standard. No other units of measurement are included in this standard.1.5.1 Exception—In 5.2.1 and 5.2.2, inch-pound units are provided in parentheses after the SI units for information only.1.6 Table of Contents:   Section 1Referenced Documents 2Terminology 3Building Interface Requirements and Installation 4Environmental Conditions 5Fire and Smoke Protection 6Material Requirements 7Structural, Mechanical and Stability Calculations 8Mechanical and Physical Properties 9Buffers and Guides 10Suspension Wire Rope and Wire Rope Connections 11Hoisting Machines and Pulleys 12Means to Prevent Falling of the Platform(s) 13Electrical Power Requirements 14Operation, Control and Communication 15Accompanying Documents 16Markings, Warnings and Operating Instructions 17Verification of Safety Requirements 18Quality Assurance 19Maintenance 20Keywords 21Type Tests Annex A1Tests and Verifications Before First Use Annex A2Periodic Verifications Annex A3PRS Utilization Procedures Annex A4Rationale Statement Appendix X11.7 This standard does not purport to address all of the safety concerns, if any, associated with its use. It is the responsibility of the user of this standard to establish appropriate safety, health, and environmental practices and determine the applicability of regulatory limitations prior to use.1.8 This international standard was developed in accordance with internationally recognized principles on standardization established in the Decision on Principles for the Development of International Standards, Guides and Recommendations issued by the World Trade Organization Technical Barriers to Trade (TBT) Committee.

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5.1 Investments in long-lived projects such as buildings are characterized by uncertainties regarding project life, operation and maintenance costs, revenues, and other factors that affect project economics. Since future values of these variable factors are generally not known, it is difficult to make reliable economic evaluations.5.2 The traditional approach to project investment analysis has been to apply economic methods of project evaluation to best-guess estimates of project input variables as if they were certain estimates and then to present results in single-value, deterministic terms. When projects are evaluated without regard to uncertainty of inputs to the analysis, decision-makers may have insufficient information to measure and evaluate the risk of investing in a project having a different outcome from what is expected.5.3 Risk analysis is the body of theory and practice that has evolved to help decision-makers assess their risk exposures and risk attitudes so that the investment that is the best bet for them can be selected.NOTE 1: The decision-maker is the individual or group of individuals responsible for the investment decision. For example, the decision-maker may be the chief executive officer or the board of directors.5.4 Uncertainty and risk are defined as follows. Uncertainty (or certainty) refers to a state of knowledge about the variable inputs to an economic analysis. If the decision-maker is unsure of input values, there is uncertainty. If the decision-maker is sure, there is certainty. Risk refers either to risk exposure or risk attitude.5.4.1 Risk exposure is the probability of investing in a project that will have a less favorable economic outcome than what is desired (the target) or is expected.5.4.2 Risk attitude, also called risk preference, is the willingness of a decision-maker to take a chance or gamble on an investment of uncertain outcome. The implications of decision-makers having different risk attitudes is that a given investment of known risk exposure might be economically acceptable to an investor who is not particularly risk averse, but totally unacceptable to another investor who is very risk averse.NOTE 2: For completeness, this guide covers both risk averse and risk taking attitudes. Most investors, however, are likely to be risk averse. The principles described herein apply both to the typical case where investors have different degrees of risk aversion and to the atypical case where some investors are risk taking while others are risk averse.5.5 No single technique can be labeled the best technique in every situation for treating uncertainty, risk, or both. What is best depends on the following: availability of data, availability of resources (time, money, expertise), computational aids (for example, computer services), user understanding, ability to measure risk exposure and risk attitude, risk attitude of decision-makers, level of risk exposure of the project, and size of the investment relative to the institution’s portfolio.1.1 This guide covers techniques for treating uncertainty in input values to an economic analysis of a building investment project. It also recommends techniques for evaluating the risk that a project will have a less favorable economic outcome than what is desired or expected.21.2 The techniques include breakeven analysis, sensitivity analysis, risk-adjusted discounting, the mean-variance criterion and coefficient of variation, decision analysis, simulation, and stochastic dominance.1.3 The techniques can be used with economic methods that measure economic performance, such as life-cycle cost analysis, net benefits, the benefit-to-cost ratio, internal rate of return, and payback.1.4 This international standard was developed in accordance with internationally recognized principles on standardization established in the Decision on Principles for the Development of International Standards, Guides and Recommendations issued by the World Trade Organization Technical Barriers to Trade (TBT) Committee.

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4.1 This practice can be applied to the requirements for facility serviceability of many functional occupant groups, provided that an appropriate set of requirement classifications for each type has been established.4.2 This practice can be applied to rating the facility serviceability of a building or building-related facility.4.3 This practice can be used to ascertain the requirements of a group or organization at the time when the group (1) needs to ascertain the serviceability of the facility it occupies; (2) is contemplating a move and needs to assess the relative capability of several existing facilities to perform as required, before deciding to rent, lease, or buy; (3) needs to compare its requirements to the serviceability of a facility that is being planned, or is designed but is not yet built; (4) is planning to remodel or rehabilitate the space it occupies and needs to establish the required level of serviceability that the remodeled or rehabilitated facility will have to meet.4.4 This practice is not affected by the complexity of the requirement for serviceability.4.5 This practice can be used by any individual with sufficient organizational, functional, and technical knowledge of buildings to act as an informed facilitator. The individual charged with the task of leading the process of establishing the functional requirements of an occupant group or organization needs basic facilitation and interviewing skills. The individual charged with rating the serviceability of a building needs sufficient knowledge of buildings to identify the features that are present.4.6 This practice provides a means of setting typical required serviceability levels for any serviceability topic, and of comparing the required levels of functionality for one occupant group or organization against levels set by others.4.7 This practice provides a means for organizations to set a profile of functional requirements for each type of occupant group within that organization.4.7.1 This practice provides a means for organizations to identify and validate exceptional needs of their occupants rapidly.4.7.2 This practice provides a means of comparing the requirement levels of various occupant groups within an organization.4.8 This practice provides a method for comparing how well an occupant's functional requirements match the capabilities of different buildings or facilities, despite differences such as location, structure, mechanical systems, age, and building shape.4.9 This practice provides a framework that allows design professionals and facility managers to select the most cost-effective means of providing a facility that will best provide the required levels of serviceability.4.10 This practice helps the occupants to understand how various functional requirements interact and impact on the overall serviceability of a building or building-related facility and on its level of serviceability for each topic.4.11 By providing a direct link between the features of a facility and its level of serviceability on any topic, the descriptions of each level clarify how various subsystems and materials used in a facility interact to provide that level of serviceability.4.12 Examples of Potential Applications: 4.12.1 Project Feasibility—When the owner of an older building considers remodeling it into apartments, or needs to rehabilitate it to bring it up to current market demand.4.12.2 Select Option Before Leasing—A corporate real estate and facility manager compares ratings of several office facilities before selecting which to lease.4.12.3 Compare Serviceability of Design Options—An architect rates various designs to select the most effective way of achieving design objectives within a fixed construction budget.4.12.4 Marketing—An owner rates a building for several potential uses to identify target markets that would find the building most serviceable in its present condition, or when remodeled for another use.4.12.5 Suitability of Existing or Proposed Use—A potential buyer assesses the suitability of a facility for multi-tenant office use.4.12.6 Cost Reduction—The owner rates various design options to select the most cost-effective means for achieving a target serviceability profile.4.12.7 Financial Analysis—The owner or potential buyer assesses likely benefits of a proposed remodel and conversion from a warehouse to a highly technical manufacturing building.4.12.8 Energy and Water Conservation—The owner or potential buyer compares the likely relative levels of energy or water consumption of a facility, or the likely cost-effectiveness of options to reduce energy and water consumption, or improve indoor air quality.4.13 This practice is not intended for, and is not suitable for, use for regulatory purposes, nor for fire hazard assessment, nor for fire risk assessment.1.1 This practice provides a definitive procedure for setting the level of requirements of the users (functionality) for the functional capability of a building or building-related facility.1.2 This practice provides a definitive procedure for rating the level of functional capability (serviceability) provided by an existing building or building-related facility, or to be provided according to the design for one.1.3 This practice provides a definitive procedure for creating or adapting a set of classifications for establishing the levels of functionality required of or the level of capability provided by a building or building-related facility.1.4 This practice can be used for setting the profile of requirements of an occupant group in an existing building or building-related facility, or of a group planning to move and looking at new accommodations to rent, buy, or build, and it can be used to assess the suitability of their present facilities.1.5 This practice can be used for setting the profile of requirements of an owner, facility manager, lender, or other investor.1.6 This practice does not specify what would cause a building to be rated at a given level. That information is found in classifications for specific topics of serviceability that contain a set of rating scales.1.7 This practice is not intended to be used for regulatory purposes.1.8 This practice contains the following information, in the sections indicated:  Section Introduction 1 1Referenced Documents 2Terminology 3 4Essence of the Approach 5Procedure for Setting the Profile of Required Functionality 6Procedure for Setting the Profile of Functional Capability for a Building or for Building-Related Facilities 7Rating the Plans or Proposals for a New Building or for a Remodel or Rehabilitation Project 8Keywords 9Rules for Setting Levels in a Scale Annex A1Examples of Scales Appendix X1Steps for Setting the Functional Requirement Profile Appendix X2Steps for Setting the Facility Rating Profile Appendix X3Examples of Bar-Chart Profiles Appendix X4Example of Titles of Aspects, Topics and Features Appendix X5List of Common Types of Function Appendix X61.9 This standard does not purport to address all of the safety concerns, if any, associated with its use. It is the responsibility of the user of this standard to establish appropriate safety, health, and environmental practices and determine the applicability of regulatory limitations prior to use.1.10 This international standard was developed in accordance with internationally recognized principles on standardization established in the Decision on Principles for the Development of International Standards, Guides and Recommendations issued by the World Trade Organization Technical Barriers to Trade (TBT) Committee.

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