Page 152 - Green Building Through Integrated Design

128 COSTS OF GREEN BUILDINGS

THE INITIAL BUDGET
Low budget projects, such as design/build retail store or tilt-up construction suburban
offices are going to be harder to LEED-certify without adding costs, because so many
of the costs have already been optimized for that project type, particularly to reduce
capital cost by not exceeding any code requirements. In looking at small retail stores,
for example, I have found a 5 percent cost increase for the first certification. However,
the USGBC’s “volume build” program can be used to keep costs low, because it allows
a retailer to certify a prototype, then just submit any site-related changes for review,
for each subsequent store. By contrast, a project with a large budget per square foot
can more easily absorb any added costs for LEED certification.

TIMING OF THE PROJECT

A significant determinant of cost is when the project is bid; in 2006 and 2007, for
example, I’ve been told that some projects in major cities had trouble even getting sub-
contractor bids, because everyone was just flat-out too busy. As the commercial build-
ing sector slows down in 2008 and 2009, as seems likely, contractors will likely be
more eager for work, and prices should come down a little. Continuing inflation of
construction materials is also a factor in adding cost to project budgets.

LOCATION OF THE PROJECT
In many cities, there are a lot of LEED projects. In those locations, contractors are
becoming accustomed to installing green roofs, underfloor air systems, hydronic space
conditioning, and similar departures from “normal practice,” and don’t have to include
a “fear factor” in their bids. In other places, the first few LEED projects are probably
going to have to work harder at subcontractor education and sourcing alternative mate-
rials, to keep costs down.

CLIMATE
Since many of the high-performance LEED projects have aggressive energy-savings
goals, climate can be an issue in determining costs. For example, many projects on the
West Coast, where humidity is not a significant design factor and temperatures are
mild much of the year, can rely on 100 percent dedicated outside air systems (using
economizer cycles) for much of their cooling during the year. Such systems are not
really possible in the hot humid Southeast, and so cooling options may not be as plen-
tiful. A study of laboratory buildings by Davis Langdon (using the Labs 21 EPC rat-
ing system) showed that the incremental cost of a Gold building could nearly double
between coastal Santa Barbara, California and California’s interior Central Valley.

DESIGN STANDARDS
Certain public and private institutions require higher levels of design than just a
“code” building. Certain campus settings already provide parking; central steam