| description abstract | This paper presents a methodology for economic evaluation of design codes. The optimal design level of a product—a component, a system, or a facility—is determined as the one that involves the highest net life-cycle benefit, i.e., benefits less costs to society. The costs may include the production cost, the operating and maintenance expenses, and the cost of malfunctioning to the product, its users, other parties that may be affected, and to the system within which it is employed. The particular application of the methodology involves seismic design of buildings. The total life-cycle cost in the case of seismic design is composed of the initial cost of the building designed for a selected level of peak ground acceleration and the expected cost of failure due to an excessive earthquake. The latter includes the cost of fatalities, of injuries, the cost of damage to buildings, and the cost of inactivity due to damage. The optimal level of the design acceleration results in a minimum total life-cycle cost. The methodology for calculation of each component of the life-cycle cost is explained, and an application example is presented. | |
