Green Construction Update
A Sustainable/Green Construction Update National Association of Surety Bond Producers
Presented by: Frank Falsetti LEED AP(Business Development), Jim Hunzinger LEED AP (Executive Vice President), Dave Dell “Agnese LEED AP AIA (Hunzinger Construction University) Hunzinger Construction Company Milwaukee, Wisconsin
January 11th, 2011
1
Learning Objectives 1. USGBC: LEED Update since 8/8/09 Colorado Springs. Frank Falsetti: Hunzinger Construction.
2. Issues concerning Legal obligations to Contractors when building a LEED facility. Jim Hunzinger: Executive Vice President HCCO
3. Subcontractor education, LEED submittals, and field monitoring to obtain LEED Goals. Dave Dell Agnese : Hunzinger Construction University Case Study: Johnson Controls World Headquarters.
4. Questions ??? (10 Minutes)
How many OSHA violations can you find in this 1933 Disney Original Cartoon?
2
Hunzinger Construction Company: 104 Years Serving S.E. Wisconsin
Frontier Airline Center
Family Owned and Managed: 4 Generations of the Hunzinger Family
3
LEED: Leadership Energy Environmental Design “Business is the only mechanism on the planet today powerful enough to produce the change necessary to reverse global environmental and social degradation.” Natural Capitalism: Creating the Next Industrial Revolution. Paul Hawken
Describes a future in which Business and Environmental interests increasingly overlap 4
LEED: Green Building Design & Construction
Introduced 6/01 V3.0 4/09 4th update
LEED for New Construction LEED for Core & Shell LEED for Schools LEED for Healthcare* LEED for Retail*
Introduced 6/05 V 3.0 4/09 2nd Update
LEED for Commercial Interiors LEED for Retail Interiors*
Introduced 10/04 V 3.0 4/09 3rd Update
LEED for Existing Buildings LEED for Existing Schools*
9 Rating Systems from 3 Reference Guides + LEED for Homes and LEED for Neighborhood Development.
5
LEED for Commercial Interiors Checklist
Certified 40-49 Points, Silver 50-59 Points, Gold 60-79 Points, Platinum 80 Points and above. 6
Green Building Certification Institute (GBCI)
Provides 3rd party Project Certification recognizing excellence in green building performance. Administers project certification for buildings and tenant spaces under the USGBC’s LEED Green Building Rating Systems. Manages the Professional Credentialing Programs, LEED Green Associate and LEED AP credentials based upon the LEED Rating Systems. 158,571 individuals have obtained LEED AP credentials. 11,538 individuals have obtained LEED GA credentials.
7
USGBC as of January 3rd, 2011 14,272 LEED Certified Projects (7/10/09: 2,878) + 11,394 57,193 LEED Registered Projects (7/10/09 : 21,252) + 35,941
12,000 Projects Achieved Certification In 2009 & 2010
84% of all Certified LEED projects, from it’s 10 year history, occurred during a difficult 2 year economic periods. 8
LEED-EB Case Study
www.sustainablebuildingsolutions.biz
9
10 10
The Green Bottom Line …..
“Environmentally Enlightened” Property Owners are looking at these benefits on the Revenue side of the Balance Sheet. Utility cost savings over the lifetime of the building. Productivity enhancements for employees. Key employment recruitment & retention. GREEN Branding and Public Relations. Improved Real Estate portfolios. Corporate Social Responsibility. Operating costs reductions. Government Incentives.
Focus on analyising long term building operating costs and Building Commissioning so that the Financial Industry places a higher value on LEED Buildings. 11
Government is leading the way.
New construction involving GSA government buildings will now be certified LEED Gold . Contractors for government projects may increasingly be called to construct intricate design features so that the building can meet LEED Gold standards. In 2011, for the 1st time, owners of 25,000 commercial properties in New York City must report their building’s energy use to the city. The data will be compiled into publicly posted report cards that officials hope will shame energy hogs into making the renovations needed to improve their scores. New Seattle Ordinance Will Identify Energy-Wasting Buildings. Seattle Washington passed a new city ordinance requiring large commercial buildings to annually measure energy use to allow comparisons. Seattle Mayor Mike McGinn approved the Energy Disclosure Ordinance Monday in an attempt to publicly identify property owners energy wasting buildings. The Nations 1st Mandatory Statewide Standards Code the 2010 California Green Buildings Standards Code (CALGREEN ) will take effect January 1st 2011. Having a mandatory code will allow California’s builders to build to a certifiable green standard without having to pay costly fees for 3rd party programs.
Other Government Benefits: Tax Incentives (The Energy Policy Act of 2005 extended to 12/31/13), The Recovery and Reinvestment (Stimulus) Act of 2009, Expedited permitting , Looming Cap & Trade Regulation?
A Sustainable Trend: Moving from Energy efficiency standards to legal requirements.
12
Caveat Emptor:“Let the Buyer Beware.” .
Green Buildings 5 Deadly Sins Piecemeal Green. Go with green building from the start. Making Promises. Quantify Claims. Include disclaimers guaranteeing a particular outcome or specific energy efficiency. Identify Maintenance measures. Ensure that consequential damages are waived. Be specific on warranties.
Green Undefined. Define exactly what you mean by green. Green means many different things to different people.
Implying High Hopes. Ask customers what they expect from Green construction and document the expectations.
Believing Pretty Lies. It’s the Contractors responsibility to make sure what we build is as “green” as it actually is.
Green building projects offer substantial opportunities for owner disappointment and projectparticipant disputes. However, both can and should be mitigated through careful planning and 13 contract drafting
Basic Recommendations for Mitigating Legal Risks with Green Buildings 1: Aim to Build Green from the outset. Clarify project goals and requirements up-front. Use an integrated design process and assure the flow of information among parties. Project Management is key. 2: Be attentive while drafting contracts to ensure that contractual language reflects expectations for certification. Contracts must call out product specifications, include timelines and documentation requirements. Identify the tax credit goals. Clarify the expectations of a tenant’s benefits and obligations. Address payment provisions. 3: Contractors, Owners and Design professionals must pay attention to insurance policies seeking coverage for green specific warranties or services. 4: Be mindful that any disclosures and marketing materials that define expectations and risks for a green construction project are aligned with reality. Harvard Law School: The Green Building Revolution. Addressing & Managing Legal Risks and Liabilities March 10,2009.
There is still very little legal precedent address Green Building Claims. Existing construction Context theories form the basis for suits in green building context. Three main areas for 14 legal liability include breach of contract, fraud and negligence.
Risk Management Plans for Green Buildings.
The Key: It is important to have a team of Risk Management Professionals who understand the nuances associated with the various insurable and uninsurable risks of Green Building. Once the risks are identified, creative measures can Be taken to minimize those risks. It is crucial to review the exclusions and endorsements issued with Payment and Performance Bonds because they might exclude the coverage the precise matter for which the coverage is sought.
The AGC published the ConsensusDOCS 310 Green Building Addendum (GBA) to address the unique risks and responsibilities associated with Green Building. 15
Johnson Controls Campus Expansion Project
4 Platinum Buildings: The largest concentration of LEED Platinum buildings in the World. 16
Johnson Controls Campus Plan
413,000 Sq. ft. of new and renovated buildings. 17
Construction Manager, General Contractor LEED Project Activities THE KEY: Never promise to achieve a level of LEED Certification. Identify the subcontractor Project Managers and educate them to the LEED project goals. Draw out anyone who appears to not understand LEED Process. Offer training, re-orientation and education of LEED project goals. Project Managers and APM’s should be LEED AP’s. They educate / re-educate / follow-up / reconfirm and monitor the process. Collect submittal information for LEED templates from the start of the Project. Welcome and education DBE/WBE. Hunzinger Hosts a meet and greet LEED Orientation event. 18
Subcontractor LEED Responsibilities. LEED Project Experience: There is no substitution. Integrated Design: What is the subcontractors knowledge of this delivery method?
THE KEY: Identify the Subcontractor’s Understanding and Knowledge of the LEED Process.
Building Commissioning: How does the subcontractor support this important review of Building systems and components? LEED AP on Staff: Proves the companies commitment to the LEED certification process. LEED Project Goals & Checklist: Identify the LEED checklist and discuss the support required by to achieve specific points. LEED Project Documentation & Submittal: Who is responsible. Specify time frame for the submittal to be completed. “Green” Product: Is the Subcontractor trained in the proper installation of the product? Protect Green Specific warranties.
The Operations and Maintenance Manuals should highlight the “GREEN” aspects of the work. 19
Field Operations LEED Responsibilities.
THE KEY: Tradesmen will continue doing things the way they always have, until they are educated otherwise. Reinforce that this is a new way to work.
LEED Coordination Meetings which include the Owner, Architect, Project Managers, Subcontractor s and Job Foreman. Safety is Job 1 LEED is Job 1 Quality is Job 1 Constant Monitoring and Reviewing of Waste Management Diversion and Indoor Air Quality Preservation Records Building Commissioning. Pre-Function Checklists are reviewed with the Commissioning Agent before installation of key systems. Field Personnel are LEED AP’s. Project Specific Orientation. LEED Project Goals and Safety Goals on a CD. Must be viewed to get on site the 1st time.
Hold Monthly on site LEED Project Goal and Safety Reviews with tradesmen. 20
Thank you!
For more information contact: Frank Falsetti, Business Development Associate Direct: 262-780-9157 E Mail: [email protected]
www.sustainablebuildingsolutions.biz
21
Presented by: Frank Falsetti LEED AP(Business Development), Jim Hunzinger LEED AP (Executive Vice President), Dave Dell “Agnese LEED AP AIA (Hunzinger Construction University) Hunzinger Construction Company Milwaukee, Wisconsin
January 11th, 2011
1
Learning Objectives 1. USGBC: LEED Update since 8/8/09 Colorado Springs. Frank Falsetti: Hunzinger Construction.
2. Issues concerning Legal obligations to Contractors when building a LEED facility. Jim Hunzinger: Executive Vice President HCCO
3. Subcontractor education, LEED submittals, and field monitoring to obtain LEED Goals. Dave Dell Agnese : Hunzinger Construction University Case Study: Johnson Controls World Headquarters.
4. Questions ??? (10 Minutes)
How many OSHA violations can you find in this 1933 Disney Original Cartoon?
2
Hunzinger Construction Company: 104 Years Serving S.E. Wisconsin
Frontier Airline Center
Family Owned and Managed: 4 Generations of the Hunzinger Family
3
LEED: Leadership Energy Environmental Design “Business is the only mechanism on the planet today powerful enough to produce the change necessary to reverse global environmental and social degradation.” Natural Capitalism: Creating the Next Industrial Revolution. Paul Hawken
Describes a future in which Business and Environmental interests increasingly overlap 4
LEED: Green Building Design & Construction
Introduced 6/01 V3.0 4/09 4th update
LEED for New Construction LEED for Core & Shell LEED for Schools LEED for Healthcare* LEED for Retail*
Introduced 6/05 V 3.0 4/09 2nd Update
LEED for Commercial Interiors LEED for Retail Interiors*
Introduced 10/04 V 3.0 4/09 3rd Update
LEED for Existing Buildings LEED for Existing Schools*
9 Rating Systems from 3 Reference Guides + LEED for Homes and LEED for Neighborhood Development.
5
LEED for Commercial Interiors Checklist
Certified 40-49 Points, Silver 50-59 Points, Gold 60-79 Points, Platinum 80 Points and above. 6
Green Building Certification Institute (GBCI)
Provides 3rd party Project Certification recognizing excellence in green building performance. Administers project certification for buildings and tenant spaces under the USGBC’s LEED Green Building Rating Systems. Manages the Professional Credentialing Programs, LEED Green Associate and LEED AP credentials based upon the LEED Rating Systems. 158,571 individuals have obtained LEED AP credentials. 11,538 individuals have obtained LEED GA credentials.
7
USGBC as of January 3rd, 2011 14,272 LEED Certified Projects (7/10/09: 2,878) + 11,394 57,193 LEED Registered Projects (7/10/09 : 21,252) + 35,941
12,000 Projects Achieved Certification In 2009 & 2010
84% of all Certified LEED projects, from it’s 10 year history, occurred during a difficult 2 year economic periods. 8
LEED-EB Case Study
www.sustainablebuildingsolutions.biz
9
10 10
The Green Bottom Line …..
“Environmentally Enlightened” Property Owners are looking at these benefits on the Revenue side of the Balance Sheet. Utility cost savings over the lifetime of the building. Productivity enhancements for employees. Key employment recruitment & retention. GREEN Branding and Public Relations. Improved Real Estate portfolios. Corporate Social Responsibility. Operating costs reductions. Government Incentives.
Focus on analyising long term building operating costs and Building Commissioning so that the Financial Industry places a higher value on LEED Buildings. 11
Government is leading the way.
New construction involving GSA government buildings will now be certified LEED Gold . Contractors for government projects may increasingly be called to construct intricate design features so that the building can meet LEED Gold standards. In 2011, for the 1st time, owners of 25,000 commercial properties in New York City must report their building’s energy use to the city. The data will be compiled into publicly posted report cards that officials hope will shame energy hogs into making the renovations needed to improve their scores. New Seattle Ordinance Will Identify Energy-Wasting Buildings. Seattle Washington passed a new city ordinance requiring large commercial buildings to annually measure energy use to allow comparisons. Seattle Mayor Mike McGinn approved the Energy Disclosure Ordinance Monday in an attempt to publicly identify property owners energy wasting buildings. The Nations 1st Mandatory Statewide Standards Code the 2010 California Green Buildings Standards Code (CALGREEN ) will take effect January 1st 2011. Having a mandatory code will allow California’s builders to build to a certifiable green standard without having to pay costly fees for 3rd party programs.
Other Government Benefits: Tax Incentives (The Energy Policy Act of 2005 extended to 12/31/13), The Recovery and Reinvestment (Stimulus) Act of 2009, Expedited permitting , Looming Cap & Trade Regulation?
A Sustainable Trend: Moving from Energy efficiency standards to legal requirements.
12
Caveat Emptor:“Let the Buyer Beware.” .
Green Buildings 5 Deadly Sins Piecemeal Green. Go with green building from the start. Making Promises. Quantify Claims. Include disclaimers guaranteeing a particular outcome or specific energy efficiency. Identify Maintenance measures. Ensure that consequential damages are waived. Be specific on warranties.
Green Undefined. Define exactly what you mean by green. Green means many different things to different people.
Implying High Hopes. Ask customers what they expect from Green construction and document the expectations.
Believing Pretty Lies. It’s the Contractors responsibility to make sure what we build is as “green” as it actually is.
Green building projects offer substantial opportunities for owner disappointment and projectparticipant disputes. However, both can and should be mitigated through careful planning and 13 contract drafting
Basic Recommendations for Mitigating Legal Risks with Green Buildings 1: Aim to Build Green from the outset. Clarify project goals and requirements up-front. Use an integrated design process and assure the flow of information among parties. Project Management is key. 2: Be attentive while drafting contracts to ensure that contractual language reflects expectations for certification. Contracts must call out product specifications, include timelines and documentation requirements. Identify the tax credit goals. Clarify the expectations of a tenant’s benefits and obligations. Address payment provisions. 3: Contractors, Owners and Design professionals must pay attention to insurance policies seeking coverage for green specific warranties or services. 4: Be mindful that any disclosures and marketing materials that define expectations and risks for a green construction project are aligned with reality. Harvard Law School: The Green Building Revolution. Addressing & Managing Legal Risks and Liabilities March 10,2009.
There is still very little legal precedent address Green Building Claims. Existing construction Context theories form the basis for suits in green building context. Three main areas for 14 legal liability include breach of contract, fraud and negligence.
Risk Management Plans for Green Buildings.
The Key: It is important to have a team of Risk Management Professionals who understand the nuances associated with the various insurable and uninsurable risks of Green Building. Once the risks are identified, creative measures can Be taken to minimize those risks. It is crucial to review the exclusions and endorsements issued with Payment and Performance Bonds because they might exclude the coverage the precise matter for which the coverage is sought.
The AGC published the ConsensusDOCS 310 Green Building Addendum (GBA) to address the unique risks and responsibilities associated with Green Building. 15
Johnson Controls Campus Expansion Project
4 Platinum Buildings: The largest concentration of LEED Platinum buildings in the World. 16
Johnson Controls Campus Plan
413,000 Sq. ft. of new and renovated buildings. 17
Construction Manager, General Contractor LEED Project Activities THE KEY: Never promise to achieve a level of LEED Certification. Identify the subcontractor Project Managers and educate them to the LEED project goals. Draw out anyone who appears to not understand LEED Process. Offer training, re-orientation and education of LEED project goals. Project Managers and APM’s should be LEED AP’s. They educate / re-educate / follow-up / reconfirm and monitor the process. Collect submittal information for LEED templates from the start of the Project. Welcome and education DBE/WBE. Hunzinger Hosts a meet and greet LEED Orientation event. 18
Subcontractor LEED Responsibilities. LEED Project Experience: There is no substitution. Integrated Design: What is the subcontractors knowledge of this delivery method?
THE KEY: Identify the Subcontractor’s Understanding and Knowledge of the LEED Process.
Building Commissioning: How does the subcontractor support this important review of Building systems and components? LEED AP on Staff: Proves the companies commitment to the LEED certification process. LEED Project Goals & Checklist: Identify the LEED checklist and discuss the support required by to achieve specific points. LEED Project Documentation & Submittal: Who is responsible. Specify time frame for the submittal to be completed. “Green” Product: Is the Subcontractor trained in the proper installation of the product? Protect Green Specific warranties.
The Operations and Maintenance Manuals should highlight the “GREEN” aspects of the work. 19
Field Operations LEED Responsibilities.
THE KEY: Tradesmen will continue doing things the way they always have, until they are educated otherwise. Reinforce that this is a new way to work.
LEED Coordination Meetings which include the Owner, Architect, Project Managers, Subcontractor s and Job Foreman. Safety is Job 1 LEED is Job 1 Quality is Job 1 Constant Monitoring and Reviewing of Waste Management Diversion and Indoor Air Quality Preservation Records Building Commissioning. Pre-Function Checklists are reviewed with the Commissioning Agent before installation of key systems. Field Personnel are LEED AP’s. Project Specific Orientation. LEED Project Goals and Safety Goals on a CD. Must be viewed to get on site the 1st time.
Hold Monthly on site LEED Project Goal and Safety Reviews with tradesmen. 20
Thank you!
For more information contact: Frank Falsetti, Business Development Associate Direct: 262-780-9157 E Mail: [email protected]
www.sustainablebuildingsolutions.biz
21
