As increasing numbers of structures are considered as candidates for seismic retrofit, there is a need for simple and objective methods for assessing structures, for making decisions between competing structures, and for comparing different retrofit schemes. The accuracy and objectivity of the assessment process may be enhanced by the use of sophisticated inelastic analysis programs and seismic damage indices, but only if these tools can be shown to be very reliable; currently they are not sufficiently widely used for engineers to have complete confidence in them. Using extensive comparisons with laboratory test results, it is shown that inelastic analysis procedures, together with damage indices, can provide accurate and robust predictions of structural capacity. Recommendations are made for the selection and calibration of damage indices appropriate for use in seismic assessment and retrofit design. Copyright (C) 1996 Elsevier Science Ltd.