Green 101Greening 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

Source: Business Week, 11/06/06

Generation Y

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.

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200

400

600

800

1000

1200

1400

2000 2001 2002 2003 2004 2005 2006 2007

Year

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4000

6000

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10000

12000

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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

5% Cost of Construction

Source: U.S. Federal Facilities Council Technical Report No. 142

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)

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)

Baseline example Use of Present

Value/Future Value

Added Cost Discount Water Inflation Main. Inflation Core CPIof Alternate Rate (%) Rate (%) Rate - CPI(%) Rate (%)

-1425 2.25 5 5 2.5Year One Salvage ValueSavings Maint. Cost* in Year 10

8 400 0.00

Year Energy Savings Maint. Cost* Net Cash Flow Disc. NCF Pres. Worth1 8.00 400.00 (392.00) (392.00) 1033.002 8.40 420.00 (411.60) (392.72) 640.283 8.82 441.00 (432.18) (393.45) 246.824 9.26 463.05 (453.79) (394.18) (147.35)5 9.72 486.20 (476.48) (394.91) (542.26)6 10.21 510.51 (500.30) (395.64) (937.90)7 10.72 536.04 (525.32) (396.37) (1334.27)8 11.26 562.84 (551.58) (397.10) (1731.37)9 11.82 590.98 (579.16) (397.84) (2129.20)

10 12.41 620.53 (608.12) (398.57) (2527.77)

Life Cycle Costs for Non-water Urinals

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 Platinum Gold SilverUSGBC Ave. 7.80% 2.70% 1.00%San Francisco 7.80% 2.70% 1.00%Merced 10.30% 5.30% 3.70%Denver 7.60% 2.80% 1.20%Boston 8.80% 4.20% 2.60%Houston 9.10% 6.30% 1.70%

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

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. Erosion & Sedimentation ControlB. LEED Accredited ProfessionalC. CFC Reduction in HVAC & R EquipmentD. Minimum IAQ PerformanceE. 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+ •Includes “Green

Associate” exam and also includes another two-hour exam on one of five specialization areas:

Commercial Building 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• Unveiled in Salt Lake City in June of 2008

Operation and Performance Management Professional (OPMP)• 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.usMSCA (http://www.msca.org/greenroom)http://www.mscastar.org/greenstar.php

USGBC http://www.usgbc.orgASHRAE http://www.ashrae.org

Conclusion