Value Engineering and LEED Jim Sullivan, M.A.M.C., M.B.C., LEED A.P

Value Engineering and LEED

Jim Sullivan, M.A.M.C., M.B.C., LEED A.P.

Jim Sullivan, M.B.C.

Today’s GoalsDiscuss common view of Value Engineering (VE)

Cost versus Value Change, Time, and Costs

Discuss common view of the United States Green Building Council (USGBC) and LEED certified projects

Discuss how VE methods relate to LEED

Perform LEED checklists relating to cost/time/value

Present literature


VE – Costs versus Value

VE is not last minute cost cutting. For example, substituting vinyl tile for

marble in the lobby of a bank because the project is over budget is not VE.

VE is a systematic approach that yields improved function.


VE Common Systematic Approach Within Constraints

Information phaseCreative phaseJudgment phaseAnalysis phaseDevelopment phase


Cost of ‘When’ Change Occurs

Cost

Time


Change in construction typically Effects Time, Cost, and/or Quality

TIME

Change

COST QUALITY


Davis Langon Conclusions

Major influences on LEED design cost Demographic (location) Bidding climate and culture Local and regional design standards,

including codes and incentives Intent and values of project Climate Timing of implementationTiming of implementation Size of building Point synergies


USGBC and LEED

USGBC is a non-profit promoter of sustainable alternatives. USGBC developed LEED program (www.usgbc.org).

Goals of USGBC: Define ‘green’ brand Transform the construction marketplace Raise consumer awareness

Note goals do not state “hug trees.”


LEED Checklist

The LEED checklist notes criteria that must be met in order to be awarded points.

There are two types of criteria: Prerequisites: Which must be met Design Credits: Which are project

dependent


LEED Certification Levels

Certification Level Points

Certified 26 to 32

Silver 33 to 38

Gold 39 to 51

Platinum 52 or more

Total Available Points 69


LEED Points

Credits Category Points

3 Water Efficiency 5

7 Materials and Resources 13

8 Sustainable Sites 14

8 Indoor Environment Policy 15

6 Energy and Atmosphere 17

Subtotal 64

Innovation and Design 4

LEED AP 1

Total 69


“VEing” a LEED Project

Consider Three Scenarios:A. New Project with Owners seeking

LEED certification from conception.B. Six-months in a 2-year project the

Owners decide to seek LEED certification.

C. Six-months left on a 2-year project the Owners decide to seek LEED certification.


“VEing” a LEED ProjectAs a VE expert place an A/B/C next to the LEED credit you may consider analyzing for a 10-million dollar Class A office building in downtown Gainesville seeking a Gold Certification.

If you have time, take a guess at costs for the project as a percentage. Note percentage for each category.

Constraints: Project A not to exceed 10% ($1,000,000) Project B not to exceed 15% ($1,500,000) Project C not to exceed 30% ($3,000,000)


Point System – Scorecard

Points, points, and more points Refer to ‘scorecard’ Environmental categories contains

prerequisites and credits: Prerequisites must be met to earn any

points in a category. Not all categories have prerequisites.

Credits are earned as they apply to your project. Not all categories may apply to any one given project.


Quick Review of Scorecard

Points are awarded in the following categories: Sustainable sites Water efficiency Energy and Atmosphere Indoor Environmental Quality Material Resources Innovation and Design Process


SS – Sustainable Sites (14 points)

Prerequisite: Erosion ControlSite Selection (1 point)Urban Redevelopment (1 point)Brownfield Redevelopment (1 point)Alternative Transportation (1-4 points)Reduced Site Disturbance (1-2 points)Stormwater Management (1-2 points)Landscape & Exterior Design (1-2 pointsLight Pollution Reduction (1 point)


WE – Water Efficiency (5 points)

Water Efficient Landscaping (2 points)Innovative Wastewater Technologies (1 point)Water use reduction (2 points)


EA - Energy and Atmosphere (17 points)

Three Prerequisites: Commissioning, Energy Performance, and CFC ReductionOptimize Energy (10 points)Renewable Energy (3 points)Additional Commissioning (1point)Ozone Depletion (1 point)Measurement and Verification (1 point)Green Power (1 point)


MR – Materials & Resources (13 points)

Prerequisite: Storage/Collection RecyclablesBuilding Reuse (3 points)Construction Waste Management (2 points)Resource Reuse (2 points)Recycled Content (2 points)Local/Regional Material (2 points)Rapidly Renewable Materials (1 point)Certified Wood (1 point)


EQ – Indoor Environmental Quality (15 points)

Prerequisites: Minimum IAQ, ETSCarbon Dioxide Monitoring (1 point)Increase Ventilation (1 point)Construction IAQ (2 points)Low Emitting Materials (4 points)Indoor Source Control (1 point)Controllability Systems (2 points)Thermal Comfort (2 points)Daylight & Views (2 points)


ID – Innovation & Design (5 points)

Innovation Design (4 points)

LEED Certified Professional (1 point)


“VEing” SummaryProject A: All points except maybe SS:Brownfield are “possible.”

Project B: Limits are location and shell under construction and most materials ordered (change).

Project C: Building nearing completion. Some prerequisites might not have been met, may not be eligible. If eligible, major expense to redesign/replace systems.


“VEing” LEED

Total available credits are determined by location and when the decision to go for a green design.

Certification level determines cost impact compared to a non-LEED building.


LEED project considerations

Payback models are focus on the Energy and Atmosphere credits paying for most all of the other credits.

Lifecycle analysis models focus on Material and Resources credits.

Construction Contractors focus on Material and Resource and Indoor Environmental Policy.


Green Light Strategies – Paul Shahriari, Consultant

DPR/ABD Project Cash Flow Analysis: LEED Certified, Silver, Gold, Platinum Rating Levels

$359,758

-$2,200,000

-$1,700,000

-$1,200,000

-$700,000

-$200,000

$300,000

$800,000

$1,300,000

$1,800,000

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

Years

Ca

sh

Flo

w P

os

itio

n

$ D

olla

rs

CERTIFIED SILVER

GOLD PLATINUM

Silver Cash Flow Position Year 10


Where exercise fits in VE process?

Conducted Information and perhaps Creative phase of VE process.

You would now move on to the Judgment and Analysis Phases of VE to determine final checklist for each scenario.


Current Data

GSA detailed estimate states projects seeking LEED from conception should come in at under 3% compared to non-LEED projects.

Davis Langdon (Architecture Firm) states that in certain green areas of the US LEED from conception projects should not have additional costs.


GSA LEED Cost Study 2004

500 page plus detailed estimate for typical GSA Construction.

Study reviewed New and Renovation designs for a Courthouse and Office Building for all levels of LEED certification.


GSA Data


GSA Data


Davis Langdon Data

Reviewed in house database of costs from actual completed projects.

Study looked at feasibility of all 7 prerequisites and 69 possible design points.


Davis Langon Typical for All Building Types




Literature Review

Current sustainability/VE literature looks to incorporate VE methodology with Green goals.

VE methodology literature is established.

Green literature focuses on Life Cycle Costs and whole system environmental tradeoffs.


Literature – VE/Sustainability

Risk Management By Integrating Value Engineering and Project Control - Mansour, Farid Fam, Value World, Volume XVIII, Number 2, June 1995. Value Engineering is capable of being critically

involved in every step of the construction process. Reduce the total life cycle cost, including costs

associated with all project phases, from planning, preliminary design, detailed engineering and construction, to maintenance and operation.

Provide methodology to evaluate value and function in the face of budget, schedule, safety, and design controls.



Environmental Value Engineering - Kibert, C.J., Roudebush, W.H., and Waller, D.L, Value World, Jan. Feb. Mar. 1991.

The premises for Environmental Value Engineering (EVE) are discussed.

EVE’s basic premise is to utilize the methodology of Value Engineering (VE) to address the issues of Overall Environmental Impacts (OEI) in construction.

The end result of the EVE process is to provide the methodology for design and construction leaders to select the optimum construction elements balancing function, cost, and environmental impacts.



Value Engineering and Sustainability – An Opportunity to Revolutionize the Construction Industry - Schneider, M.B., Value World, Volume XVIII, Number 3, October 1995.

The main implications of the forward type of thinking is for VE experts to remember their own creed of ‘Value, not Cost.’

It is without a doubt that sustainable criteria are valuable.

Make sustainability a constraint that would appear on alternative matrices. Sustainability should be viewed a necessary view, and not as a utopian ideal.


ConclusionVE methodology is valuable to construction if methodology is adhered to in all phases of decision making.

Sustainable concepts should be included in decision matrices.

LEED offers another constraint system to evaluate design decisions.

Determining societal value for design changes difficult. What is the value of saving the ozone layer?


End

Documents

Value Engineering and LEED Jim Sullivan, M.A.M.C., M.B.C., LEED A.P