External costs
The Green Book, Central Government Guidance On Appraisal And Evaluation, Published by HM Treasury in 2018, suggests that: ‘External Costs are costs of production or consumption of a good which are not taken into account by individuals or included in the price of a good in a perfectly competitive market.’
ICMS: Global Consistency in Presenting Construction Life Cycle Costs and Carbon Emissions, 3rd edition, November 2021, published by the ICMS (International Cost Management Standard) Coalition, defines external costs as: ‘Costs associated with an asset that are not reflected in the transaction costs between provider and consumer, collectively referred to as Externalities. These costs may include business staffing, productivity, social impact costs and user costs and can be considered in a Life Cycle Cost analysis when explicitly identified (ISO 15686-5).’
[edit] Related articles on Designing Buildings
Featured articles
Check out some of the best features and news from Designing Buildings as well as key stories from around the web.
Connect, collaborate, shape the future
Registration now live for UK Construction Week Birmingham.
CIOB announces Saul Humphrey FCIOB as new President for 26/27 term.
A quick, simple, and zero-bills solution to prevent overheating.
The adaptive reuse of large industrial structures.
Promoting the circular economy by extending the life of buildings.
CIAT responds to Climate Change Committee report
An urgent wake-up call for both government and the built environment.
Construction Management, 24 June
FMB pilot aims to build pipeline of site-ready tradespeople.
A quick introduction.
CLC publishes Mental Health Joint Code of Practice.
A quick introduction to its uses and risks.
Construction Management, 17 June
Government rolls out digital planning tool to all local authorities.
Your views needed - a strategy for the professions, trades and occupations.
Confronting competency, codes, capacity and costs.
Comments
[edit] To make a comment about this article, or to suggest changes, click 'Add a comment' above. Separate your comments from any existing comments by inserting a horizontal line.