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The use of supplemental damping to dissipate energy is one of the most economical and effective ways to mitigate the effects of earthquake on structures. For practicing engineers, the ideal design procedure for buildings with supplemental damping should not be too complex to implement in practice. Building on the existing theoretical frame, the purpose of this paper is to develop simple and heuristic methods for the above design procedure.

Passive displacement‐dependent devices are considered in this paper. Based on the theoretical results for added damping and added stiffness (ADAS) devices, the paper first analyzes the generated forces and the effects of ADAS devices on structures under seismic impact. We identify design parameters and variables are identified, and present the procedure of how the values of the variables (e.g. column shear force, ductility ratio) are finalized so that the design requirements can be met is presented. A four‐story six‐bay steel building frame and a ten‐story, one‐bay steel building frame, equipped with ADAS devices, are used to demonstrate the performance of the design procedure.

Empirical results show that the arrangement of damping devices based on the proposed procedure not only significantly reduces earthquake‐induced energy, but also accomplishes the goal of being cost‐effective by the control of ductility ratio.

The proposed step‐by‐step procedure is easy for practicing engineers to apply for structures equipped with displacement‐dependent dampers, although the modeling requirements may be complex. It will also allow practicing engineers to effectively design economic seismic dampers in the preliminary design phase and further explore the cost factors by comparing different building seismic performance objectives throughout design.

This paper first aims to estimate the economic loss due to an earthquake, such as building‐related losses, the damage of debris generation and fire, and the social impact. Then, it seeks to evaluate the feasibility of retrofit to prevent buildings from seismic structural damages.

The HAZUS software is used for the seismic loss estimation using default demographic data, which were obtained from San Francisco Assessor record. The HAZUS estimates the damage using the earthquake of 6.7 magnitude. Based on the HAZUS report incorporated with probabilistic scenarios of earthquakes, Federal Emergency Management Agency (FEMA) guidelines are used to calculate the cost of structural rehabilitation in San Francisco.

It is recommended that either Options 1 and 3 or Options 2 and 3 provided by FEMA 156 and 157 respectively should be used to calculate the cost of seismic rehabilitation of a structure. The results provide estimated costs of retrofit plans for different types of existing buildings.

The implementation of quantitative and computer methods in the field of natural hazard management is demonstrated. The outcome provides economic guidelines for assessment and prevention (or reduction) of possible seismic loss and building damage.

The study may be a useful reference for retrofit plans for homeowners and business management. The cost estimation also can help government establish or revise some policies properly to provide homeowners with economic incentives (e.g. tax reduction, low interest loan) in retrofitting their homes.