Green Building Toolbox for Winning Bids

Five Steps to Navigate Safely Into Green Construction

2 | Green Building Toolbox for Winning Bids

Table of Contents
INTRODUCTION
What You Will Learn Why Green Building Needs to Be a Part of Your Business Strategy Green Buildings Make Good Business Sense

3
3 4 5

STEP 1: GREEN YOUR RISK MANAGEMENT STRATEGY

The Secret about Green Building Risks Typical Green Construction Risks Mitigating Green Building Risks

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6 7 8

STEP 2: CREATE GREEN MANAGEMENT

Add Green Building Experience Designate a Green Building Manager Make Sustainability Part of Your Companys Operations

9
9 10 11

STEP THREE: COMMUNICATE WITH SUBCONTRACTORS

Submittals Onsite Procedures

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13 13

STEP FOUR: KNOW GREEN SCHEDULING

First 30 days. Last 30 days.

14
15 16

STEP FIVE: GIVE A 110%

Overachieving Green = Compliance Preparation Needs Opportunity

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18 19

FIVE KEY ELEMENTS TO WINNING GREEN BUILDING BIDS ABOUT THE AUTHOR

20 21

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Introduction
Green Building has become a crucial component of any construction firm which wishes to thrive in todays economy. In recent reports by McGraw-Hill, they predict that green buildings will almost triple by 2015, despite economic conditions. When achieved successfully, a well-executed green building project can expand future opportunities to a broader audience and new markets while building renewed commitment from past clients. Successful green builders are prepared with a toolbox which demonstrates their flexibility, credibility, and knowledge. Many small and medium sized construction companies have shied away or been unsuccessful in bidding on buildings with green building requirements, due to a lack of understanding. This lack of understanding can be a clear sign to an owner of inexperience in green building. Green building projects entails greater planning and communication, and earlier participation by all trades. With the right tools your company will have a great jumpstart at successful green building projects and the knowledge to win bids.

What You Will Learn

This eBook lays out the tools your company will need to comfortably and safely navigate into the green building arena. Learn how to: Build a reliable risk management strategy Choose the right green building manager Keep your project out of the red and streamline your efforts Elevate your companys reputation The five key elements for winning green building bids The secret your competitors already know

Companies that have yet to experience a green building project or want to improve past efforts will benefit from this toolbox.

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Why Green Building Needs to Be a Part of Your Business Strategy

Green Building is here to stay and making it work is the responsibility of the owner, the architect and the contractor. Public knowledge of what constitutes a green building has been growing at a gratifyingly rapid pace. The good news is that in todays economy owners can build green for about the same price per square foot as a brown building. If your company is not successfully bidding on green building projects, you are losing a large share of your market. Federal, state, and city municipalities continue to mandate LEED certification and other green building regulations on their buildings in all economic climates. Many of these same mandates extend to private buildings as well. See the Northern California LEED Map for an example of government agencies, counties and cities commitment to green. In a 2009 survey by Turner Construction, it was found that 75% of CEOs would build green facilities despite the credit crisis. The same study reports 83% of CEOs would seek LEED certification. Where do your target clients fall?

Image 1: Interactive Google Map by Simply Sustainable Consulting at www.tinyurl.com/LEEDmap

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Green Buildings Make Good Business Sense

Many construction companies believe that green building is not profitable. However, recent construction history has shown this to be a myth. Beyond the necessity of building green which has surpassed its boutique phase, there are tangible ways green buildings increase profitability for contractors, including: Deconstruction versus Demolition/Hauling Construction Waste Management Less Errors Due to Upfront Planning Fewer Health Claims Due to Safer Products More Efficient Installation Methods Less Claims During Warranty Periods

Greg Kats, in his 2010 extensive financial analysis of 170 green construction projects found that the median cost increase for building green was 1.4%. More than three-quarters of the buildings in the data set have green premiums between 0% and 4%; the largest concentration (69 buildings) is between 0% and 1%. This roughly translates into a cost premium of about $3 per square foot. When bidding a project, dont overbid because your company lacks the knowledge. In the following steps, this EBook explains various portions of a green building project to give the reader a deeper understanding. The EBook was written with Northern California contractors who are pursuing commercial public buildings with green building requirements in mind. However, the book offers a breath of information for any contractor who is seeking their first green building project.

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Step 1: Green Your Risk Management Strategy

Before your company can start bidding green building projects and receive real results, you need to understand your companys exposure and how to reduce it. Trying to move into green building without understanding the risk can devastate your companys financial standing and reputation. With the right risk tools and knowledge in place, your company can build a comprehensive risk management strategy capable of achieving a variety of objectives. In this EBook, your company will re-evaluate its current risk management system to mitigate these additional green building risks: Exceeding the construction budget through unexpected soft costs Installation problems through improper green measures Schedule penalties due to lack of meeting important deadlines Loss of reputation and insurability through inability to meet project goals

Each of these areas can be reduced with the right strategies.

The Secret about Green Building Risks

Many contractors associate green building with risk, risky, and riskier. However, the biggest secret your competitors will not tell you is: Green buildings pose less exposure to loss than traditional buildings Green Real Estate Law Journal For instance, mold is less of a problem with green materials and methods. There are several tests before, during and after the construction phase which ensure mistakes are corrected prior to the project closeout. These tests help avoid future claims down the road. A building which has undergone a systematic and documented process like building commissioning ensures an owner that operational needs are met. Owners are more likely to look at their maintenance and operation practices prior to calling the contractor if a problem is discovered.

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Typical Green Construction Risks

There are two typical green building risks for contractors: poor installation; untried technology or materials with little track record. The typical green building has 90% of the same trusted materials contractors are accustomed to. Those materials may have added recycled content or eliminated volatile organic compounds (VOCs); however they are still provided by the trusted manufacturers like Armstrong, USG, Dow, Cemco, Otis, etc. There is a misconception that most green building products are provided by small unknown companies. This was true ten years ago, but not today. Many companies, big and small, have green options that meet LEED and other green building standards. These materials may have slight changes, like longer sealing times or longer lead times, but they are not hard to find, untried or risky. Poor Installation Typical items that fall under this category are green roofs, concrete mixes, and structural insulated panels (SIP). Of course, green building regulation seeks to correct some of the poor installation practices of traditional buildings. Therefore these practices also fall under this category. Items like insulation, leaky ductwork, windows which are not properly sealed are given more attention in green construction. The best way to mitigate these issues is by hiring quality subcontractors and checking work carefully prior to the building commissioning and other end of project tests. Untried Technology Google and FaceBook have proven that sometimes it pays not to be the first to the table. Untried technology and materials are a big risk, especially since your company is warranting the building for a year. Prior to bidding a project, make a list of all products your team is not familiar with and at the pre-bid conference request Image 2: Image CC licensed by Wikimedia the contact information for the User Alyson Hurt. vendors, if not provided in the specifications. Also ensure that the vendor have qualified installers in the projects area. This effort starts to demonstrate your companys ability to manage the elements of the project. In addition, it aids your company during the newly won project.

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Mitigating Green Building Risks

While insurance is not the only step in guarding your company against the potential risks, it is your first step. Start by answering the following questions about your current builders insurance and bonds. Does your insurance carrier offer a green building rider which covers soft damages such as retesting, reinstallation, re-certification and appeals? Do your bonds specifically list no liability for green building requirements or can an addendum with a clear description of the construction responsibilities be added? * Please note some owners will not accept the no liability clause. In case of a fire, how do your current insurance and bonds providers handle the replacement of salvaged equipment, furniture and materials?

More and more these riders, clauses, and addendums are becoming commonplace. Firemans Fund was the first to the U.S. commercial market in 2006. Even with insurance and measures in place to cover less exposure, getting the project off to the right start can reduce your reliance on insurance.

Step 1 Recap
1. Green buildings are less risky and more profitable than traditional buildings. 2. Identify unfamiliar materials during bidding and ask the right questions during the pre-bid conference. 3. Re-evaluate your insurance, talk to your carrier(s) for your options.

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Step 2: Create Green Management

As your confidence in green building strengthens, so will your commitment increase. Attitude and consistency are key elements in preparing to win a green building project. Your companys next step in creating your toolbox is to add sustainability measures where it counts to win bids. Without a visible commitment to green building, your company can win green building projects. However, your team may or may not survive them gracefully, depending on your ability to adapt quickly. Adding experienced people and looking at your procedures are key components.

Add Green Building Experience

While having a green building professional on your team is a good idea, experience goes well beyond memorizing standards from a book and taking an exam. LEED Accredited Professional (AP) in lieu of LEED Green Associates is a good place to start. LEED Green Associates are professionals who have demonstrated expertise in non-design or construction areas of practice or did not have sufficient green building experience to qualify for the LEED AP exam. LEED APs can be employees or green building consultants. Green building consultants charge .6% to 2% of the construction cost depending on their scope of work. When choosing a LEED AP, choose someone who is accredited in your market or has experience in your market.

LEED Accreditations and Construction Markets

Commercial Interiors

Low Rise Residential

Retrofits & Small Renovations)

Mixed Use

New Construction & Major Renovations

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Next, your company wants someone who has experience on LEED Online. Despite USGBC greatest efforts and thick manuals, your team leader can not fully anticipate the information needed for each construction credit unless they are familiar with the template forms. This familiarity can be obtained through training or experience. Beyond LEED, many municipalities have additional requirements which effect both public and private buildings. A LEED AP should be knowledgeable in all standards which may be applicable in your area for example CalGreen in California and Bay Friendly Landscape (Bay Area Cities Adopted).

Designate a Green Building Manager

One substitute in the construction phase can eliminate the ability to achieve one of the project goals. Each project should have someone designated to watch for how changes affect the achievement of the project goals including: LEED credits Other Sustainability requirements Tax incentives regulations and deadlines

The green building manager responsibilities can include: Determine LEED and other green building requirements from the contract documents and communicate them clearly to all team members. Stay on top of the ever-changing industry and train the appropriate people. Maintain proper records of green building actions. Review all submittals, R.F.I.s, and change orders to determine if they affect LEED certification or other green building requirements. Coordinate monthly with other green building managers within your company. Submit monthly green building reports to the projects owner. Perform visual inspections of key installations, like wall cavity insulation.

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Make Sustainability Part of Your Companys Operations

Similar to traditional buildings, green buildings cannot be profitable without some forethought on operations. Every part of your operations should be revisited. From adding a check box for green building related items to your standard RFI form, to modifying your project closeout procedures. Below are some areas which your company does not want to miss when updating your operations. Documentation Documenting with photos, logs, and doing monthly reports are good practices on any construction project. In the area of documentation, your company should revisit all your standard documents and determine if a green building project would require the documents to be updated. It is recommended to make this change at your earliest convenience. The advantage of this exercise is your non-green building clients, who are just about ready to do a green building, will know your company is prepared. Look at it as future marketing. Quality Control Quality control is twice as important on a green building project. Through several tests and inspections, improperly installed products will need to be removed and re-installed. Having the green building manager perform visual inspections weekly, monthly or an appropriate interval will improve your quality control efforts, reduce surprises at the end of the project and eliminate the need for reinstallation. This can be an extension of your current quality control procedures. Application of Payment Clients are starting to request monthly reports on the status of construction green building goals. These reports are to be attached to the Application of Payment. This allows your company to stay informed of any problems and the owner to stay in front as well. It is a win-win situation.

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Shop Drawings and Submittal Management Green buildings add a few columns or a separate form to the submittal log. If your company is using an online management system, check to see if this management system has the necessary add-ons to handle a green building job. If not, websites like LEEDuser.com have downloadable templates. The best way to prepare for a green building project is to start incorporating green building principals in non-green projects when feasible and profitable. Step 2 Recap 1. Add experience to your team via employee training, hiring or contracting with a green building consultant. 2. Revisit your current documentation and management software or create new forms.

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Step Three: Communicate with Subcontractors

With just a few new procedures, managing the subcontractors green experience can be an easy task. Subcontractors are mostly affected by the earlier schedule, additional submittals, and non-traditional onsite procedures. When communicated clearly, early and often, these effects can be minimized.

Submittals
Submittals on a green building project are more extensive. It includes the regular submittals plus: Green building related submittals Test reports Certifications from manufacturers Extensive records (system contractors) Non-typical submittals, like non-visible sealants.

Onsite Procedures
Various LEED credits and green building regulations require a different mindset for onsite procedures. Selecting a superintendent who is up for the challenge is key to having these procedures work. Waste Management Possibly the most significant credit during the construction phase, construction waste management requires salvaging and sorting. However, it is worth a maximum of 3 points. The purpose of this credit and green building requirement is simple: divert construction and demolition debris from the landfill and incineration facilities and redirect recyclable resources back to the manufacturing process or reuse in the building. One of the first tasks at the beginning of a green building project is a construction waste management plan. Goals range from 50% to 90% diversion. In the LEED credit, excavated soils and land-clearing is not covered. However, it is a requirement for such programs like Bay Friendly Landscape or by many California government agencies. Your green manager, project manager, and superintendent should have a good

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understanding of what is required and communicate this to subcontractors early in the project. Storage of Interior Materials Gone are the days of storing interior materials anywhere. Architectural interior finishes constitutes a significant source of air pollutants. To eliminate mold and other contaminates outdoor storage or immediate installation after arrival on site is recommended. This procedure is especially an issue in projects requiring an Indoor Air Quality Management Plan. If required, identify early whether your potential project has the capacity to store or install fast, if not bring it up during the pre-bid conference. Special arrangements may need to be made and included.

Step 3 Recap
1. Communicate clearly, early and often on submittals and onsite procedures. 2. Know construction waste regulations from the city, owner, LEED and area ordinances. 3. Determine early whether or not indoor storage or immediate installation of interior materials is feasible.

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Step Four: Know Green Scheduling

Scheduling is an important element of any construction project. Many project managers want to know how a green building affects the scheduling and planning of their project. Green buildings projects are not stressful when viewed with the overall project in mind. However the first thirty days of construction and the last thirty days prior to occupancy or substantial completion can be stressful if not planned correctly.

First 30 days.
In addition to the regular start-up activities, there are several plans to write and implement. Having a good start to these plans can alleviate stress and strain on the project. For your toolbox, create the following company templates: SWPPP: Update your stormwater pollution prevention plan to ensure all LEED and CALGreen requirements are addressed. Construction Management Plan: Know where the local facilities are for diversion and salvaging. Indoor Air Quality Plan: Know a trusted air quality testing agency and your companys procedures. Be aware sometimes, the specification indicates the testing company to utilize. Action Plan: Create forms for subcontractors to ensure your team is achieving its project goals, like recycled content, regional materials, etc. Because these credits are based on cost, do not assume the architect has completed this step. Long Lead Times: Similar to the Toyota Pruis when it hit the market, some green building products, due to demand, are experiencing long lead times. The general rule is the larger the quantity of the material and/or the smaller the vendor, the longer the lead times. Create a standard form identifying these materials to discuss with the owner. This form should allow for early buy-out of these items.

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Last 30 days.
Test and inspect and test some more is the motto of a green building project and for good cause. Some of the worst problems have been found during the closeout of green building projects. However, this is more desirable to the alternative of finding the problems a few years after the project opens. Three common requirements during the closeout phase are: Air Quality Testing: This ensures the contaminant levels of the projects are below allowable limits. Ensuring VOC credits are met, air distribution systems are protected, and materials are properly stored will lead to passing the test. Building Commissioning: Building commissioners are usually hired by the owner and is a required credit of buildings seeking LEED certification. Commissioned systems which will be inspected includes, but are not limited to, HVAC&R, lighting, daylighting controls, hot water systems, and renewable energy systems. Green Building Documentation: Completing and uploading the construction efforts is the construction teams responsibility. It is recommended that as soon as the owner receives the building commissioning report and the air quality test are completed, the documentation should be submitted. For instance, LEED reviews take about 6 to 8 weeks (slower during holiday seasons). Some owners hold the final retainer until the documentation have been achieved sufficiently. Here is a general schedule from toolbox creation to project closeout. Prior to Proposing on a Green Building 1. Re-evaluate your current insurance carrier and scope of insurance; can your company get coverage? 2. Add experience through training, hiring and/or contracting with a green building consultant. 3. Revisit your companys current operations and management software. 4. Create templates for various site management plans needed during construction. Pre-Bid 5. List unfamiliar materials and ask for clarification. 6. Determine if site restrictions will prohibit indoor storage or immediate installation of interior materials.

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First 30 Days after Contract Initiation 7. Create and implement the project-specific plans, like construction management plan, indoor air quality plan, and green building action plan. 8. Identify long lead times and request early buy-outs. During Construction 9. Ensure all submittals are submitted and checked by the green building manager. 10. Do monthly reports of project goals progress to the owner. 11. Pass all changes through the green building manager and ensure these changes do not affect project goals. Prior to Project Closeout 12. Complete air quality testing. 13. Coordinate with building commissioner to schedule appropriate test and inspections. 14. Complete green building documentation and any other sustainable documentation required.

Step 4 Recap
1. Give the green building elements sufficient attention during the first 30 days and last 30 days of the project. Schedule resources to account for the added workload. 2. Know your team tasks from project proposal to project closeout.

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Step Five: Give A 110%

Unlike in cheesy motivational speeches from a owner to its sale managers, giving 110% in green construction is a reality. Giving 110% simply means achieving 10% more to account for a margin of error. However, it also means do everything you are already doing to make your business successful and go the additional 10% to add green building to your business strategy. Two key areas where giving 110% are vital includes getting the project and doing the project.

Overachieving Green = Compliance

Dont expect that doing the minimum amount of work will succeed. Green building reviewers are very sharp and will reject anything without sufficient documentation. As a general rule, if your team needs 10 points to achieve your goal, submit a 10% cushion above that, which is 11 points or more. For example, LEED reviews at best can be shocking. After the initial review your team will get comments back. Similar to building permitting, it is very rare that the documentation is completely correct the first time around. Please note, also similar to permitting, the reviewer may not point out all your mistakes in the first round of comments. However, the difference between LEED reviews and building permits reviews is with LEED your team only gets comments once, after that it is denied rather or not you got a comment. Fair, maybe or maybe not, but it is the reality. Giving 110% equals a better chance at compliance. Because your company is creating your winning toolbox, your team has the ability to anticipate early where you need more cushion and determine your best actions. Your toolbox will give your company the ability to start bidding and winning green building bids.

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Preparation Needs Opportunity

While knowing the logistical aspects of green building is a great foundation, it does not make a difference unless your companys potential clients see the work your team has done to prepare. After preparing your toolbox, add these items to your website and marketing materials: A commitment to sustainability page or area Show or address examples of how your company has integrated green features in past projects (for instance, site stormwater runoff protection, white roofs, efficient plumbing, recycling, salvaging, indoor air quality procedures, etc.) Add green facts related to construction; check with common vendors for their latest news. Do press releases for new LEED AP staff and other green building achievements. See what your competitors who have already gone green are doing and do 10% more.

Step 5 Recap
1. Know the LEED and other green building programs review process. 2. Giving 110% equals a better chance at full compliance. 3. Creating your toolbox early, allows for a smoother project from start to end. 4. Dont forget to tell your potential clients about your toolbox efforts.

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Five Key Elements to Winning Green Building Bids

1. Preparation & Knowledge: Do Steps 1 through 5. Step One: Green Your Risk Management Strategy Step Two: Create Green Management Step Three: Communicate with Subcontractors Step Four: Know Green Scheduling Step Five: Give a 110%

2. Dont be afraid to ask for clarification. 3. Remember the secret your competition knows and dont overbid. 4. Present your solution for each project: templates, green building manager, special subcontractors, etc. 5. Dont exaggerate your companys green building experience; in lieu of this demonstrate your commitment to green building and your companys track record in overall construction.

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About the Author

Monique Lee, LEED AP supports mid-size architectural and construction firms who are struggling to win green building projects. She trains and supports her clients to be knowledgeable, confident, and safely navigate the green building industry. Moniques writings and work has been featured in several magazines including Urban Land, Retail Construction and an American Institute of Architects (AIA) White paper. Her personal motto and teaching style is derived from an Albert Einstein quotation, Most of the fundamental ideas of science are essentially simple, and may, as a rule, be expressed in a language comprehensible to everyone. Monique is the owner of Simply Sustainable Consulting; a green building firm located in Oakland, California with extensive experience in LEED and other green building regulations throughout California. Simply Sustainable Consulting was formed in 2008 and has been effective in various projects types including interior construction, health care, and libraries.

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