LEED’ing the way to healthier living

Cost – Is building green going to take a lot of green?

Increasing restrictions on the way a building is made reduces the options construction companies have and forces them to use ‘greener’ materials which will increase upfront costs. Improved insulation and higher standards of workmanship are required to make buildings as airtight as possible. Many of the construction methods and materials are relatively cutting edge and seasoned builders will need to be trained in how to effectively implement new technologies.

These added upfront costs will save the building owner money in the future and the contractor can therefore sell the higher construction price on the basis of future saving. For example; an owner can save 36 cents per square foot per year by reducing energy costs by 20%. An extra $4 per square foot in LEED features adds about 50 cents per square foot to the annual rent. Owners can expect a 7 to 12 percent increase in net operating income by implementing LEED features. Even a small invest­ment of 2 percent in green design will save an owner ten times as much in running costs. This means that initial increases in price are not slowing down the production of LEED buildings.

Time – Failing to plan is planning to fail

As LEED projects require sustainability goals to be met throughout their construction, the building process must be fully integrated. This means more collaboration between stakeholders from conception to completion. Project management must be carefully planned so that certain phases of the build can be combined, resulting in faster construction, with lower associated costs.  This increases time spent on any one aspect of the project, but the end result is a building that has all elements built in unison. This requires a new approach to project management and training will have to be implemented to bring staff up to speed with the latest trends. Increased integration between the stakeholders as well as inspection and certification processes all add to construction time. Additional training of staff members and its inherent costs will have to be borne by the construction industry.

Supply vs. Demand – It’s give and take

Awareness and publicity of green buildings is on the rise and the market is responding in kind. Discerning buyers and tenants are increasingly demanding environmentally friendly spaces to work and live in, and developers can charge higher prices and enjoy higher occupancy rates thanks to their LEED certifications.

‘As a relative newcomer to the building industry, LEED certification's additional documentation, measurement and verification requirements sometimes face criticism for adding to the time and cost of construction. The value of LEED certification becomes obvious when the energy and environmental benefits of integrated design and construction are considered over the building's operational life.’ 

-Kerry Johnston, Co-ordinator, Sustainable Energy and Building Technology Program, Humber College