Ultimate Limit State
To satisfy the ultimate limit state, the structure must not collapse when subjected to the peak design load for which it was designed. A structure is deemed to satisfy the ultimate limit state criterion if all factored bending, shear and tensile or compressive stresses are below the factored resistances calculated for the section under consideration. The factored stresses referred to are found by applying Magnification Factors to the loads on the section. Reduction Factors are applied to determine the various factored resistances of the section.
The limit state criteria can also be set in terms of load rather than stress: using this approach the structural element being analysed (e.g. a beam or a column or other load bearing element, such as walls) is shown to be safe when the "Magnified" loads are less than the relevant "Reduced" resistances.
Read more about this topic: Limit State Design
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