essay 2-3 pages
Ssult89
UnderstandingLEEDCosts1.pdf
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LEED Costs Overview & Literature Review
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The following is a broad overview of LEED Project Costs to help prepare for the Green Associates and LEED AP Exams – Section will cover broad use of terms and often cited case studies and reports.
Business Case for Green
Buildings
Recover higher first costs – if any via integrated design and performance
Buildings designed to be more efficient
Boost employee productivity
Enhance health
Reduce liability – Sick Building claims
Increase property value and create value for tenants
Take advantage of incentive programs
Benefit community
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What is the cost of ‘Green?’
• There are several schools of thought and various studies associated with Green and LEED design costs.
– Green design stresses integrated design which pays for itself in saving construction costs.
– Pursuing LEED certification drives up the cost of green design due to requirements.
– Owners should be getting green designs as the standard of construction.
Broad Terms
• The following are terms used
often in the evaluation of ‘green
alternatives’ –
– Hard Costs
– Soft Costs
– Life Cycle Costs (LCC)
LCC= IC + OC + RC + MC – SC (Initial costs+operating costs+replacement costs+maintenance costs-salvage costs)
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Hard Costs
• Hard costs on construction
projects typically relate to
physical items purchased to be
permanently installed in the
project. Items include –
– Wall systems
– HVAC/Lighting systems
– Types of interior finishes
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Hard Costs
• Hard costs are influenced by
several things –
– The overall first cost or purchase price of the item or items.
– The expertise of the labor
necessary to install the item.
– The time and resources it takes to install the item.
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Soft Costs
• Soft costs in construction relate to the design, engineering, and construction professionals’ time associated with a project.
• Studies detailed later look at factors that may drive up the design costs associated with certain LEED credits compared to traditional design costs. Experience is an obvious factor.
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Life-Cycle Costs
• There are two general life-cycle terms used
in comparing products for the built
environment.
– Life-Cycle Analysis (LCA) which is a
comprehensive analysis of the
environmental impacts a product has
from virgin material through end-use.
– Life-Cycle Cost (LCC) method which
compares products on items relative to
first costs and performance.
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Life-Cycle Costs
• Life-Cycle Costing examines the following based on present values of the following items for a fixed period of time (i.e., 20 or 50 years. You can choose the time frame you like) –
– Investment or purchase costs
– Replacement costs
– Residual value
– Energy costs
– Water costs
– Operating, Maintenance, and Repair
costs 10/14/2020 9
Life-Cycle Cost Analysis
• Life-Cycle Cost Analysis (LCCA) is the standard method required by the Department of Energy’s Federal Energy Management Plan (FEMP) for evaluating energy and water conservation investments for federal
projects.
• The goal is to compare in present
value terms the differences between like alternatives.
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LCC Comparison
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Present Value Analysis Conventional High
Performance
Initial Investment $100,000 $110,000
Capital Replacement (part) $9,000 $13,000
Residual Value ($2,000) ($3,000)
Electricity $300,000 $200,000
OM&R $100,000 $120,000
Total LCC $507,000 $440,000
High Performance Savings $67,000
LCC allows you to organize and compute the costs of purchasing, operating, and ultimately disposing of a building or building components.
• First Costs/Savings = costs and savings from incorporating green features into a building. Rarely are there “First Savings”
• Life-Cycle Costs/Savings = costs/savings over a building’s or feature’s useful life. There may be substantial life-cycle savings.
Economic Factors
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Energy Efficient Windows Can decrease heating costs by 40%
Energy Efficient Windows Can decrease cooling costs by 32%
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Business Case – Building Efficiency
On average, green buildings perform better
than conventional buildings. Green buildings
tend to:
• Save energy
• Use less water
• Generate less waste
• Provide healthier indoor environments
• and more
Business Case – Building Efficiency
U.S. General Services Administration (GSA)
survey of 12 Green Buildings in their portfolio
found:
• 26 % less energy usage
• 13% lower maintenance costs
• 27% higher levels of occupant satisfaction
• 33% lower CO2 emissions
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Business Case – Building Efficiency
World Business Council for Sustainable
Development
• Public opinion survey found that respondents
BELIEVED that green building features add 17%
to the cost of a building.
• Actual survey of 146 green buildings found
ACTUAL average marginal cost of less than 2%.
Business Case – Building Efficiency
New Buildings Institute
• Average energy use intensities (energy
consumed per unit of floor space) are 24%
lower than in typical buildings
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Business Case – Building Efficiency
Business Case – Building Efficiency
1.84%Average of 33 Buildings
6.50%Level 4 – Platinum (1)
1.82%Level 3 – Gold (6)
2.11%Level 2 – Silver (18)
0.66%Level 1 – Certified (8)
Average Green Cost PremiumLevel of Green Standard
Source: USGBC Data, Capital E Analysis
Average Green Cost Premiums for 33
Green Buildings, by LEED level
www.cap-e.com
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LEED Cost Summary
There tends to be two general mind sets with regard to LEED and Costs.
• Mind Set 1: LEED certified projects cost 2 to 10% more than traditional construction. This is an add below the line school of thought.
• Mind Set 2: LEED certified projects can be produced at no additional costs per sf for any given project. The tradeoffs and synergies above the line balance.
