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 and news
National Apprenticeship Week 2026, 9-15 Feb
Shining a light on the positive impacts for businesses their apprentices and the wider economy alike.
Applications and benefits of acoustic flooring
From commercial to retail.
From solid to sprung and ribbed to raised.
Strengthening industry collaboration in Hong Kong
Hong Kong Institute of Construction and The Chartered Institute of Building sign Memorandum of Understanding.
A detailed description fron the experts at Cornish Lime.
IHBC planning for growth with corporate plan development
Grow with the Institute by volunteering and CP25 consultation.
Connecting ambition and action for designers and specifiers.
Electrical skills gap deepens as apprenticeship starts fall despite surging demand says ECA.
Built environment bodies deepen joint action on EDI
B.E.Inclusive initiative agree next phase of joint equity, diversity and inclusion (EDI) action plan.
Recognising culture as key to sustainable economic growth
Creative UK Provocation paper: Culture as Growth Infrastructure.
Futurebuild and UK Construction Week London Unite
Creating the UK’s Built Environment Super Event and over 25 other key partnerships.
Welsh and Scottish 2026 elections
Manifestos for the built environment for upcoming same May day elections.
Advancing BIM education with a competency framework
“We don’t need people who can just draw in 3D. We need people who can think in data.”
Guidance notes to prepare for April ERA changes
From the Electrical Contractors' Association Employee Relations team.
Significant changes to be seen from the new ERA in 2026 and 2027, starting on 6 April 2026.
First aid in the modern workplace with St John Ambulance.
Solar panels, pitched roofs and risk of fire spread
60% increase in solar panel fires prompts tests and installation warnings.
Modernising heat networks with Heat interface unit
Why HIUs hold the key to efficiency upgrades.
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.