Cost-benefit analysis of fire protection in buildings

application of a present net value approach

Thomas Gernay (Author), Shuna Ni (Author), David Unobe (Author), Andrea Lucherini (Author), Ranjit Kumar Chaudhary (Author), Ruben Van Coile (Author)

Abstract

In fire safety engineering, cost–benefit analysis provides a systematic method to assess whether the projected benefits from a fire safety measure outweigh its costs. However, there remains a wide discrepancy between methods used in the field for cost–benefit analysis, as well as a lack of quantitative data on the costs and economic impact of fire protection in buildings. In a recent research project, a refer- ence methodology was proposed based on Present Net Value evaluation and on a combination of specialized construction database, fire statistics, and numerical model- ing for estimation of the cost components. This paper presents the application of the methodology to four case studies. The case studies allow describing the methodology, the collection of data, fire statistics, and loss estimation, as well as illustrating how the methodology can support decision-making when multiple alternatives are compared. Under the assumptions adopted for the single-family house and the residential timber building case studies, it is found that for every 1$ invested in sprinklers, $1.06 is saved. This benefit–cost ratio increases with increasing valuation of indirect losses and statistical value of life. Sensitivity analyses are provided to explore the robustness of the investment recommendations. The results of evaluations, adapted from the presented case studies with project-specific inputs, can support decision making for policy makers, insurance companies, and individual building owners.

Keywords

požarna varnost;analiza stroškov in koristi;statistika požarov;sprinklerji;predelitev;fire safety;cost-benefit analysis;fire protection;fire statistics;sprinklers;compartmentation;

Data

Language:	English
Year of publishing:	2023
Typology:	1.01 - Original Scientific Article
Organization:	ZAG - Slovenian National Building and Civil Engineering Institute
Publisher:	Kluwer
UDC:	624
COBISS:	166074883
ISSN:	1572-8099
Views:	30
Downloads:	2
Average score:	0 (0 votes)
Metadata:

Other data

Secondary language:	Slovenian
Secondary keywords:	požarna varnost;analiza stroškov in koristi;statistika požarov;sprinklerji;predelitev;
Embargo end date (OpenAIRE):	2024-05-09
Source comment:	Opis vira z dne 27. 9. 2023; Nasl. z nasl. zaslona;
Pages:	str. 2023–2053
Volume:	ǂVol. ǂ59
Issue:	ǂiss. ǂ4
Chronology:	Jul. 2023
DOI:	10.1007/s10694-023-01419-2
ID:	21327453