EllenLeroyReed's blog

Hard Facts on Soft Costs

As cross-posted from my blog, www.sustainabuild.net

As the director of business development for a green general contracting firm, I often hear the question, "... but what's it gonna cost me?". Of all the questions I regularly address, that is certainly at the top of the list. Right below "What is LEED?"

The biggest concern among those considering LEED is the costs, and specifically the soft costs. The costs above construction. The "vague" costs. The cost of the unknown.

My standard answer is, "Well, that really depends..." and I still argue that it does. Every project is different and unique like little snowflakes. And each snowflake requires different little snowflake systems and each has it's own little snowflake agendas and ROI expectations on overall snowfall.

The best way to determine what LEED is going to cost for your project is to gather your design and construction team to talk about goals and then talk about potential costs. Though my specialization is commercial properties, I know this holds especially true for residential projects.

Until you have that opportunity, though, let's talk about some historical data on soft costs.

Colorado is ahead of the curve in terms of Green Building and LEED-certified projects, so they have more data to provide. Peter D'Antiono, LEED AP and PE with PCD Engineering Services in Colorado wrote "Cost and Benefits of Commissioning LEED-NC Buildings" which was presented at the May 2007 National Conference on Building Commissioning. Included in this paper are facts from 11 LEED-certified buildings in his state. He detailed their square footage, construction costs, Energy cost savings, LEED cost premium and the net LEED savings. The average square footage was 98,365, with the largest project being 288,685 and the smallest at 10,000 square feet, all of which were commercial or institutional projects.

Here are some of the overall statistics:

  • The cost premium for LEED NC certification ranged from 1% to 6% of construction costs.
  • Two of the projects noted they were able to achieve LEED certification on schedule and under budget.
  • Soft costs, including LEED registration and certification, documentation, energy modeling and commissioning averaged 0.8% of the total construction costs, or average $1 per square foot.
  • Documentation was difficult to quantify as the basis for reporting was inconsistent across the projects and ranged from $3000 to $35000.
  • Energy modeling averaged around $10000 across nine of the eleven projects. Eight projects fell at or below the $10,000 and one was nearly $35000.
  • Small projects averaged higher costs per square foot for energy modeling.
  • All the projects averaged 20% or better than ASHRAE 90.1-2004 energy saving requirements.
  • The net present value of the energy savings offset all the LEED soft and hard costs in seven of the nine projects reporting energy savings.
  • Commissioning averaged $0.55 per square foot and accounted for roughly 60% of the total soft costs. Commissioning costs between $0.19 and $1.50 per square foot

So, there's some unvarnished truth on the cost of building green. Remember, your mileage may vary and these should not be the 'baseline' to quote the price of green. I will point out, though, it's not the 15-25% cost premium often cited by many in the construction and design industry. Seems like we have a ways to go in terms of cost paradigm shift.

Lastly, sometimes it isn't as much about the "cost", it's about the "value". A "cost" for me might be another person's "value". Understanding your green goals and tailoring a solution provides value. The cost isn't an issue if the owner realizes value. That's Sales 101.

Let's start talking about the value of green building.


Florida Finally on the Green Path

Finally.   

Proponents of Green Building threw a "woo-hoo" into the air this past week when Governor Charlie Crist signed some interesting Executive Orders.  The governor attended the Summit on Climate Change in Miami and met with officials from the UK, Germany, members of academia and the public (and, of course, Gov. Schwartzenegger) to discuss what Florida can do to control and curb carbon emissions.

I must give Gov. Crist credit for some highly ambitious goals.  Not only does he establish greenhouse gas emission reduction goals up to 40% b 2025, but also directs state and government departments to immediately begin reporting back on current emissions.  Some of these orders have a 30-day deadline.  I can't remember the last time government acted so quickly.

He has also directed that all new buildings (and this is probably my personal favorite) must meet LEED standards, with a goal of LEED Platinum.  According to a contact at the USGBC, this could very well be the most aggressive order yet in the US.  Gov. Crist also directs that all existing state and government buildings follow LEED-EB standards (LEED for Existing Buildings).  This would ensure that all current government real estate meet strict energy useage guidelines, along with indoor environmental quality benchmarks.  He has also directed that no government agency can enter into a new lease if the space does not meed energy-efficient standards.

Again, Wow.  As I said, those of us deeply involved in green building in Florida are really excited. 

If you're interested in reading the finer details of the executive orders, check out my blog (where this is loosely cross-posted) at www.sustainabuild.net

 

Wish us Floridians luck that we can move this forward!

Ellen


Growing Fresh Air

Cross-posted from www.sustainabuild.net. Though I represent the construction industry, we actively promote sustainable practices in our business, in our personal lives, and in the lives of our friends, family, and associates.

Enjoy!

There's so much talk about Indoor Environmental Air Quality, and reducing our carbon footprint... Former NASA scientist, BC Wolverton, PhD. reminds us that we have a very simple tool available to us:

Plants.

*insert 'duh' here*

Of course... Plants.

"Plants are the lungs of the earth: they produce the oxygen that makes life possible, add precious moisture, and filter toxins. Houseplants can perform these essential functions in your home wih the same efficiency as a rain forest in our biosphere." -BC Wolverton, PhD "How to Grow Fresh Air - 50 Houseplants that Purify Your Home or Office"

Betsy Robinson recently wrote an article for Spirituality and Health Magazine that focuses on how plants can improve your health, your well-being, and most importantly, your actual indoor air quality. Here's an interesting statistic quote from her January/February 2007 article:

"Since room conditions are unique, it's impossible to prescribe how many plants are needed to clean a given space, but consider this: a 100-square foot room with an 8-foot ceiling contains 22,640 liters of air filled with perhaps 3,917 micrograms of formaldehyde, the predominant indoor pollutant. The common Boston fern removes 1,863 micrograms of formaldehyde per hour."

Makes you want to go buy a plant, doesn't it? Well, if you do, here's a list of plants to consider. Wolverton rates these as the top ten in terms of their pollutant filtering capabilities, ease of growth and maintenance, and resistance to pests:

  1. Areca Palm
  2. Lady Palm
  3. Bamboo Palm
  4. Rubber Plant
  5. Dracaena "Janet Craig"
  6. English Ivy
  7. Dwarf Date Palm
  8. Ficus Alii
  9. Boston Fern
  10. Peace Lily

Want to make a difference today? Go to your local nusery, buy one of these for every member of your staff and get one for yourself, too.

Give the gift of fresh air to your staff, your family, your friends and your clients.

Grow some fresh air.


Green Contracting

Is green building attainable for anyone?

I would argue that it is... but only if your contractor is passionate about sustainability.

Passionate. Not just "versed" in it. But passionate about it. Your contractor has to believe in it because it's the right thing to do. Your project manager has to look at every bit of construction debris as something that can be redirected and recycled. They don't cut corners; they don't throw trash on the ground when no one's looking. Your contractor has to be the one that calls you first thing in the morning because she found a paint that's an even lower VOC than the one you'd chosen. Everyone on her team knows that those drains nearby lead right to the river and there's no way they're letting any pollutant near it.

Every day, we see something in the news about a Green Building. The Bank of America Building in New York is getting a great deal of airtime right now because of the magnitude of this project. It's HUGE. It has state-of-the-art Green Technology. Its innovation in design is newsworthy.

It's not gonna happen in my little office. You're probably thinking the same thing, especially if you're a small business owner. But, with the right team focused on your sustainability goals, you can earn a LEED Certification.

What if your goal is water conservation? We focus on low-flow toilets, waterless urinals, aerated faucets, xeriscaping, draught-resistant local foliage. Many of these items can be found at nearly the same prices as good-quality traditional alternatives.

What if your goal is energy efficiency? Let's outfit the place with CFL's (that are rarely replaced! Mine are still running after 4 years). Let's open the blinds and let in some daylight. How about investing in a high-performance HVAC system and then do a life-cycle analysis to see what you're going to save on your electric bill over the next 5 years?

Maybe you want to recycle, reduce, and reuse? Set a goal for 90% construction debris recycled on your renovation project. We'll reuse those flourescent light fixtures, paint those doors instead of purchasing new ones, and use the money we save to purchase FSC wood book cases.

What if you wanted a little of each? A passionate, educated contractor will make it happen for you. Another contractor might tell you what you want to hear to get the job. Do you really want to be out on the site every day checking up to ensure your recycling isn't ending up in the landfill? or do you want to trust your contractor to do what's right because you know she's as passionate as you are?

I want passion. And I want sustainability.

I challenge that you can't have one without the other.

www.sustainabuild.net