Economic Analysis of Building Code Impacts: A Suggested Approach.
Economic Analysis of Building Code Impacts: A Suggested
McConnaughey, J. S.
NBSIR 78-1528; 65 p. October 1978.
Available from: National Technical Information Service
Order number: PB-287405
cost benefit analysis; risk analysis; building codes;
standards; safety; electrical shock
This report suggests an evaluation approach which can be
use by building officials and legislative bodies faced
with making building code decisions. A method to
evaluate many of the potential benefit and cost impacts
of specific building code provisions is developed. The
report also defines and categorizes the economic impacts
of building codes. While no approach to classifying
building code impacts will be fully appropriate for all
uses, the definitions and categories proposed may help
to clarify or reconcile some of the differing opinions
concerning the impact of building codes. Finally, the
report illustrates the suggested approach by evaluating
the 1975 National Electeical Code requirement for the
use of Ground Fault Circuit Interrupters (GFCIs) in
residences. Based on sensitivity analysis, estimates
are made of how much it costs society in order to save
one life through the GFCI code provision. This case
study conclude that the estimated cost to save a life is
nearly $4 million. A lower bound estimate of the cost
to save a life is about $2.5 to $3.5 million.