Externalities in construction
NRM3: Order of cost estimating and cost planning for building maintenance works, published by the Royal Institute of Chartered Surveyors (RICS) defines ‘externalities’ as: ‘…the quantifiable costs or benefits that specifically occur when the actions of organisations and individuals have an effect on people other than themselves, such as non-construction costs, income and wider social and business costs.’
The Green Book, Central Government Guidance On Appraisal And Evaluation, Published by HM Treasury in 2018, suggests that externalities: ‘…occur when consuming or producing a good or service produces benefits or costs for others that are not directly involved in the consumption or production.’
AR5 Climate Change 2014: Impacts, Adaptation, and Vulnerability, Glossary, published by the Intergovernmental Panel on Climate Change (IPCC) suggests that: ‘Externalities arise from a human activity when agents responsible for the activity do not take full account of the activity’s impacts on others’ production and consumption possibilities, and no compensation exists for such impacts. When the impacts are negative, they are external costs. When the impacts are positive, they are external benefits.’
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 externalities as: ‘Quantifiable cost or benefit that occurs when the actions of organisations and individuals have an effect on people other than themselves, e.g. non-construction costs, income and wider social and business costs (ISO 15686-5). In the context of carbon emissions, these are benefits or loads beyond the system boundary including reuse, recovery and recycling potential.’
[edit] Related articles on Designing Buildings
Featured articles and news
An artist, philanthropist and ex-Army helicopter pilot
Q and A with self-representing artist, Hannah Shergold.
Building Safety Regulator appoints permanent director
And publishes three-year strategic plan.
Update on the Energy Savings Opportunity Scheme (ESOS)
Introducing changes to make it more effective from 2024.
2023 CIOB photography competition
Shortlist announced for 2023 public choice award vote.
The last of the Victorians. Book review.
Grimsby's Kasbah: where’s that?
An exotic name that is shrouded in mystery.
This weeks guest editor, Ankita Dwivedi of Firstplanit.
Fropm practice to research and the business of materials.
Terms, histories, theories and practices.
Types of work to existing buildings - repurposing of buildings
Alteration and everything else before demolition.
2023 HSE data on workplace injuries and ill health
And CIOB's response.
Building Safety Act and Secondary Legislation
Presidential update from CIAT's Eddie Weir PCIAT.
Starting pistol Statement for an election campaign?
Rates freeze, NI cuts, full expensing; early election?
Positive pressure or positive input ventilation
Could this be a remedy for condensation, damp or mould?
Unlocking a Healthier Tomorrow
Report on Social housing retrofit in Scotland 2023
Call for ministerial group and National Retrofit Delivery Plan.
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.