Green 101 Greening Your Firm What Are Our Clients Expectations? What Are Our Future Client’s Expectations? 89% are likely to switch brands to support a cause 74% are more likely to pay attention to companies deeply committed to a cause 69% consider a company’s social commitment when deciding where to shop 66% consider a company’s social commitment when recommending products Generation Y Source: Business Week, 11/06/06 Why Focus on Expectations? ‘Corporate Culture and Performance’ by John Kotter and James Heskett (2005) Revealed that businesses that focus obsessively on meeting the needs of customers: Revenues increase 4 times faster Job creation is 7 times faster Owner equity grows 12 times faster Profit performance is 750% higher Where’s the Opportunity? By 2035, 75% of all buildings in the U.S. will be new or renovated to reduce their environmental impact Source: American Institute of Architects Where’s the Opportunity? LEED Projects (2000 to 2007) in U.S. 1400 12000 Certified Registered 1200 10000 8000 800 6000 600 4000 Registered Projects Certified Projects 1000 400 2000 200 0 0 2000 2001 2002 2003 2004 Year 2005 2006 2007 Source: USGBC Where’s the Opportunity? Quantifying Your Performance How do you manage your client’s expectations? Managing Client Expectations Your understanding of their expectations and values Looking for the second phone call Managing Client Expectations Be a partner in the process of perfecting the scope of work Integrated Design Process (IDP) Managing Client Expectations 95% Cost of Ownership Source: U.S. Federal Facilities Council Technical Report No. 142 5% Cost of Construction Managing Client Expectations Study done by CoStar, 2007 (Miller, Spivey and Florance) Quantifying Your Performance How do you make ‘exceeding your client’s expectations’ measurable? Life Cycle Analysis (LCA) An evaluation of the environmental effects of a product or activity holistically, by analyzing the entire life cycle of a particular material, process, product, technology, service or activity Each bulb keeps ½ ton of CO2 out of the atmosphere Life Cycle Analysis (LCA) Versus Life Cycle Cost (LCC) Baseline example Use of Present Value/Future Value Assume 1 unit of water = 748 gallons Assume for commercial users, 1 unit costs $1.48/unit Assume 313,950 gallons saved per year (420 units) Life Cycle Costs for Non-water Urinals Added Cost of Alternate -1425 Year One Savings Discount Rate (%) 2.25 Water Inflation Main. Inflation Rate (%) Rate - CPI(%) 5 5 Salvage Value Maint. Cost* in Year 10 8 400 0.00 Year Energy Savings Maint. Cost* 1 8.00 400.00 2 8.40 420.00 3 8.82 441.00 4 9.26 463.05 5 9.72 486.20 6 10.21 510.51 7 10.72 536.04 8 11.26 562.84 9 11.82 590.98 10 12.41 620.53 Net Cash Flow (392.00) (411.60) (432.18) (453.79) (476.48) (500.30) (525.32) (551.58) (579.16) (608.12) Disc. NCF (392.00) (392.72) (393.45) (394.18) (394.91) (395.64) (396.37) (397.10) (397.84) (398.57) Core CPI Rate (%) 2.5 Pres. Worth 1033.00 640.28 246.82 (147.35) (542.26) (937.90) (1334.27) (1731.37) (2129.20) (2527.77) Where Are We Going From Here? • ASHRAE building labeling program The ‘Carbon Footprint’ A measure of the amount of greenhouse gases emitted through the combustion of fossil fuels. Generally measured in tons of carbon dioxide (CO2) • Business • Residence • Product Where are the Obstacles? What obstacles have you encountered to green construction? Where are the obstacles? Estimated Cost of LEED (Source: USGBC, 2007) Market USGBC Ave. San Francisco Merced Denver Boston Houston Platinum 7.80% 7.80% 10.30% 7.60% 8.80% 9.10% Gold 2.70% 2.70% 5.30% 2.80% 4.20% 6.30% City of Boulder, Colorado includes 2% for LEED costs, including commissioning. LEED soft costs, including registration, documentation and commissioning average .8% of construction costs or $1/sq.ft.1 Silver 1.00% 1.00% 3.70% 1.20% 2.60% 1.70% Marketing How do you brand your firm to be “green”? Branding Separate your firm from your competitors Hook the Owner on value, not price • Price ≠ Cost All brands contain a promise Branding Where are the marketing opportunities that would allow us to separate ourselves from our competitors? Branding More than ½ of corporate America will have a Green Policy by 2011 Source: McGraw/Hill Construction Branding Branding Marketing Recruiting and retaining Gen Y (millennial) employees • Very brand sensitive • Identify with their • • technology Love a fluid environment Expect to be on the cutting edge Business Issues What resources do you need to “green” your firm? Greening Your Firm Through Accreditation LEED accreditation ASHRAE accreditation UA accreditation MSCA Green Star designation LEED® Accreditation Understanding of green building practices and principles, and familiarity with LEED requirements, resources, and processes. www.prometric.com/usgbc LEED Accreditation LEED-NC examination will terminate in March of 2009. Will maintain the following until then: • Three tracks (NC, EB & CI) • 2-hour time frame • 80 questions • Scaled output from 125 to 200 (170 is passing) LEED Accreditation – How to Prepare LEED Reference Guide • Knowledge of LEED credits & requirements • Required coordination of project and team • How to implement the LEED process • Verify, participate and perform technical analysis required for LEED credits Practice Exam Questions Which of the following are prerequisites for LEED Certification? (Choose 3) A. B. C. D. E. Erosion & Sedimentation Control LEED Accredited Professional CFC Reduction in HVAC & R Equipment Minimum IAQ Performance Ventilation Effectiveness Certification From LEED Currently, the new examinations for LEED-NC and LEED-EB have not been released • EB examination expected in June • NC examination expected in August New LEED Certification Levels LEED Green Associate LEED AP+ LEED Fellow LEED Legacy LEED Certifications – LEED Green Associate LEED Green Associate “core” testing level • do not necessarily have to design and build. • The exam tests for basic green building knowledge • same across all rating systems. • Prerequisites: • Must be involved in a sustainable field of work or study • Required to acquire 15 hours of continuing education every 2 years • $50 maintenance fee every two years. LEED Certifications – LEED AP+ LEED AP+ Commercial Building • Includes “Green Associate” exam and also includes another two-hour exam on one of five specialization areas: Design & Construction (formerly New Construction) Existing Buildings Operation & Maintenance (formerly EB) Commercial Interior Design (formerly CI) Residential Neighborhood Development. LEED Certifications – LEED AP+ Before you apply to take the LEED AP+ exam, you must prove you worked on a LEED project Producing a letter from an owner or GC attesting your participation • Be the person responsible for a LEED credit through LEED online. Required to acquire 15 hours of continuing education every 2 years $50 maintenance fee every two years. • • • LEED Certifications – LEED Fellow LEED Fellow • This accreditation is meant to recognize the most experienced and knowledgeable professionals in the LEED community • You must demonstrate contributions to the standards of LEED • Participate in a peer review of your project portfolio • Other requirements not yet developed LEED Certifications – Legacy LEED-AP Legacy LEED-AP • Applies to the 65,000 current LEED-AP certificants • Begins in June 2009 • GBCI will give you two years to choose to become a Legacy LEED AP by: • • • • sign an ethics policy $50 maintenance fee (waived until 2011) agree to take 30 hours of continuing education every two years No additional tests are required. Exam Preparation Courses MCAA 2008 workshops on LEED-NC • TBA MSCA 2009 workshops on LEED-EB • • • • Jan. 26 & 27 - Ft. Lauderdale, FL March 9 - 10 - Scottsdale, AZ May 18 - 19 - Washington, DC Sept. 14 - 15 - Kansas City, MO Registration will open the end of October 2008. MSCA Green Star designation United Association-Green Awareness Certification 20-hour course resulting in “green” certification • Emerging concepts • Terminology • Products • Systems United Association-Green Awareness Certification Course developed by Ferris State University and HVAC Excellence in conjunction with MSCA (http://www.hvacexcellence.org/) Register at www.mcaa.org/msca/education Certification from ASHRAE High-performance Building Design Professional (HBDP) is specific to the HVAC industry • Operation and Performance Management Professional (OPMP) • Unveiled in Salt Lake City in June of 2008 Unveiled in Chicago on Jan. 28, 2009 Commissioning Process Management Professional Certification (CPMP) • To launch in Louisville, KY in June, 2009 Future Trends Due to technology and specialization, certifications will become the industry norm LEED Certification will become more specialized and more difficult to obtain ASHRAE will become the industry standard in HVAC certifications Resources MCAA http://www.greencontractors.us MSCA (http://www.msca.org/greenroom) http://www.mscastar.org/greenstar.php USGBC http://www.usgbc.org ASHRAE http://www.ashrae.org Conclusion