green building toolbox for winning bids

8/6/2019 Green Building Toolbox for Winning Bids

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Green Building Toolbox forWinning Bids

Five Steps to Navigate Safely Into Green Construction


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2| Green Building Toolbox for Winning Bids

Table of Contents

INTRODUCTION 3What You Will Learn 3Why Green Building Needs to Be a Part of Your Business Strategy 4Green Buildings Make Good Business Sense 5

STEP 1: GREEN YOUR RISK MANAGEMENT STRATEGY 6The Secret about Green Building Risks 6Typical Green Construction Risks 7Mitigating Green Building Risks 8

STEP 2: CREATE GREEN MANAGEMENT 9

Add Green Building Experience 9Designate a Green Building Manager 10Make Sustainability Part of Your Companys Operations 11

STEP THREE: COMMUNICATE WITH SUBCONTRACTORS 13Submittals 13Onsite Procedures 13

STEP FOUR: KNOW GREEN SCHEDULING 14First 30 days. 15

Last 30 days. 16

STEP FIVE: GIVE A 110% 18Overachieving Green = Compliance 18Preparation Needs Opportunity 19

FIVE KEY ELEMENTS TO WINNING GREEN BUILDING BIDS 20

ABOUT THE AUTHOR 21

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Introduction

Green Building has become acrucial component of any

construction firm which wishesto thrive in todays economy. Inrecent reports by McGraw-Hill,they predict that greenbuildings will almost triple by2015, despite economicconditions. When achievedsuccessfully, a well-executedgreen building project canexpand future opportunities to abroader audience and new

markets while building renewedcommitment from past clients.

Successful green builders are prepared with a toolbox which demonstrates theirflexibility, credibility, and knowledge. Many small and medium sized constructioncompanies have shied away or been unsuccessful in bidding on buildings withgreen building requirements, due to a lack of understanding. This lack ofunderstanding can be a clear sign to an owner of inexperience in green building.Green building projects entails greater planning and communication, and earlierparticipation 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 safelynavigate 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 toimprove 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 theowner, the architect and the contractor. Public knowledge of what constitutes agreen 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 persquare foot as a brown building.

If your company is not successfully bidding on green building projects, you arelosing a large share of your market. Federal, state, and city municipalitiescontinue to mandate LEED certification and other green building regulations ontheir buildings in all economic climates. Many of these same mandates extend toprivate buildings as well. See the Northern California LEED Map for an exampleof 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% ofCEOs 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 thenecessity 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 constructionprojects 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 premiumsbetween 0% and 4%; the largest concentration (69 buildings) is between 0% and1%. This roughly translates into a cost premium of about $3 per square foot.When bidding a project, dont overbid because your company lacks theknowledge. In the following steps, this EBook explains various portions of agreen building project to give the reader a deeper understanding. The EBookwas written with Northern California contractors who are pursuing commercialpublic buildings with green building requirements in mind. However, the bookoffers a breath of information for any contractor who is seeking their first greenbuilding project.



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Step 1: Green Your Risk ManagementStrategy

Before your company can start bidding green building projects and receive realresults, you need to understand your companys exposure and how to reduce it.Trying to move into green building without understanding the risk can devastateyour companys financial standing and reputation.

With the right risk tools and knowledge in place, your company can build acomprehensive risk management strategy capable of achieving a variety ofobjectives. In this EBook, your company will re-evaluate its current riskmanagement 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. Thereare several tests before, during and after the construction phase which ensuremistakes are corrected prior to the project closeout. These tests help avoidfuture claims down the road. A building which has undergone a systematic anddocumented process like building commissioning ensures an owner thatoperational 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 buildinghas 90% of the same trusted materials contractors are accustomed to. Those

materials may have added recycled content or eliminated volatile organiccompounds (VOCs); however they are still provided by the trustedmanufacturers like Armstrong, USG, Dow, Cemco, Otis, etc. There is amisconception that most green building products are provided by small unknowncompanies. This was true ten years ago, but not today. Many companies, bigand small, have green options that meet LEED and other green buildingstandards. These materials may have slight changes, like longer sealing timesor 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 regulationseeks to correct some of the poor installation practices of traditionalbuildings. Therefore these practices also fall under this category. Itemslike insulation, leaky ductwork, windows which are not properly sealed aregiven more attention in green construction. The best way to mitigatethese issues is by hiring quality subcontractors and checking workcarefully prior to the building commissioning and other end of project tests.

Untried Technology

Google and FaceBook haveproven that sometimes itpays not to be the first to thetable. Untried technologyand materials are a big risk,especially since yourcompany is warranting thebuilding for a year. Prior tobidding a project, make a listof all products your team isnot familiar with and at the

pre-bid conference requestthe contact information for thevendors, if not provided in thespecifications. Also ensurethat the vendor have qualified installers in the projects area. This effortstarts to demonstrate your companys ability to manage the elements ofthe project. In addition, it aids your company during the newly wonproject.

Image 2: Image CC licensed by WikimediaUser Alyson Hurt.



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Mitigating Green Building Risks

While insurance is not the only step in guarding your company against thepotential risks, it is your first step. Start by answering the following questionsabout your current builders insurance and bonds.

Does your insurance carrier offer a green building rider which covers softdamages such as retesting, reinstallation, re-certification and appeals?

Do your bonds specifically list no liability for green building requirementsor can an addendum with a clear description of the constructionresponsibilities be added? * Please note some owners will not accept theno liability clause.

In case of a fire, how do your current insurance and bonds providershandle 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 in2006. 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 traditionalbuildings.

2. Identify unfamiliar materials during bidding and ask the right questionsduring 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 commitmentincrease. Attitude and consistency are key elements in preparing to win a green

building project. Your companys next step in creating your toolbox is to addsustainability measures where it counts to win bids.

Without a visible commitment to green building, your company can win greenbuilding projects. However, your team may or may not survive them gracefully,depending on your ability to adapt quickly. Adding experienced people andlooking 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 anexam. LEED Accredited Professional (AP) in lieu of LEED Green Associates is agood place to start. LEED Green Associates are professionals who havedemonstrated expertise in non-design or construction areas of practice or did nothave sufficient green building experience to qualify for the LEED AP exam.LEED APs can be employees or green building consultants. Green buildingconsultants charge .6% to 2% of the construction cost depending on their scopeof work. When choosing a LEED AP, choose someone who is accredited in yourmarket or has experience in your market.

LEED Accreditations and Construction Markets

Commercial Low Rise Retrofits Mixed NewInteriors Residential & Small Use Construction &

Renovations) 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 notfully anticipate the information needed for each construction credit unless theyare familiar with the template forms. This familiarity can be obtained throughtraining or experience.

Next, your company wants someone who has experience on LEED Online.Despite USGBC greatest efforts and thick manuals, your team leader can notfully anticipate the information needed for each construction credit unless theyare familiar with the template forms. This familiarity can be obtained throughtraining or experience.

Beyond LEED, many municipalities have additional requirements which effectboth public and private buildings. A LEED AP should be knowledgeable in allstandards which may be applicable in your area for example CalGreen inCalifornia and Bay Friendly Landscape (Bay Area Cities Adopted).

Beyond LEED, many municipalities have additional requirements which effectboth public and private buildings. A LEED AP should be knowledgeable in allstandards which may be applicable in your area for example CalGreen inCalifornia and Bay Friendly Landscape (Bay Area Cities Adopted).

Designate a Green Building ManagerDesignate a Green Building Manager

One substitute in the construction phase can eliminate the ability to achieve oneof the project goals. Each project should have someone designated to watch for

how changes affect the achievement of the project goals including:

One substitute in the construction phase can eliminate the ability to achieve oneof the project goals. Each project should have someone designated to watch for

how changes affect the achievement of the project goals including:

LEED credits LEED credits Other Sustainability requirements Other Sustainability requirements Tax incentives regulations and deadlines Tax incentives regulations and deadlines

The green building manager responsibilities can include:The green building manager responsibilities can include:

Determine LEED and other green building requirements from the contractdocuments and communicate them clearly to all team members.

Determine LEED and other green building requirements from the contractdocuments and communicate them clearly to all team members.

Stay on top of the ever-changing industry and train the appropriate people. Stay on top of the ever-changing industry and train the appropriate people.

Maintain proper records of green building actions. 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. 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. Coordinate monthly with other green building managers within your

company. Submit monthly green building reports to the projects owner. Submit monthly green building reports to the projects owner. Perform visual inspections of key installations, like wall cavity insulation. 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 someforethought 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 areaswhich your company does not want to miss when updating your operations.

Documentation

Documenting with photos, logs,and doing monthly reports aregood practices on anyconstruction project. In the areaof documentation, your company

should revisit all your standarddocuments and determine if agreen building project wouldrequire the documents to beupdated. It is recommended tomake this change at your earliestconvenience. The advantage of this exercise is your non-green buildingclients, who are just about ready to do a green building, will know yourcompany is prepared. Look at it as future marketing.

Quality Control

Quality control is twice as important on a green building project. Throughseveral tests and inspections, improperly installed products will need to beremoved and re-installed. Having the green building manager performvisual inspections weekly, monthly or an appropriate interval will improveyour quality control efforts, reduce surprises at the end of the project andeliminate the need for reinstallation. This can be an extension of yourcurrent quality control procedures.

Application of Payment

Clients are starting to request monthly reports on the status ofconstruction green building goals. These reports are to be attached to theApplication of Payment. This allows your company to stay informed of anyproblems and the owner to stay in front as well. It is a win-win situation.



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Shop Drawings and Submittal ManagementShop Drawings and Submittal Management

Green buildings add a few columns or a separate form to the submittallog. If your company is using an online management system, check tosee if this management system has the necessary add-ons to handle a

green building job. If not, websites like LEEDuser.com

Green buildings add a few columns or a separate form to the submittallog. If your company is using an online management system, check tosee if this management system has the necessary add-ons to handle a

green building job. If not, websites like LEEDuser.com havedownloadable templates.

The best way to prepare for a green building project is to start incorporatinggreen building principals in non-green projects when feasible and profitable.

Step 2 Recap

1. Add experience to your team via employee training, hiring or contractingwith a green building consultant.

2. Revisit your current documentation and management software or create

new forms.

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Step Three: Communicate withSubcontractors

With just a few new procedures, managing thesubcontractors green experience can be aneasy task. Subcontractors are mostly affectedby the earlier schedule, additional submittals,and non-traditional onsite procedures. Whencommunicated clearly, early and often, theseeffects 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 iskey 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 greenbuilding requirement is simple: divert construction and demolition debrisfrom the landfill and incineration facilities and redirect recyclable resourcesback to the manufacturing process or reuse in the building.

One of the first tasks at the beginning of a green building project is aconstruction waste management plan. Goals range from 50% to 90%diversion. In the LEED credit, excavated soils and land-clearing is notcovered. However, it is a requirement for such programs like Bay FriendlyLandscape or by many California government agencies. Your greenmanager, project manager, and superintendent should have a good

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understanding of what is required and communicate this to subcontractorsearly in the project.understanding of what is required and communicate this to subcontractorsearly in the project.

Storage of Interior MaterialsStorage of Interior Materials

Gone are the days of storing interior materials anywhere. Architecturalinterior finishes constitutes a significant source of air pollutants. Toeliminate mold and other contaminates outdoor storage or immediateinstallation after arrival on site is recommended. This procedure isespecially an issue in projects requiring an Indoor Air Quality ManagementPlan. If required, identify early whether your potential project has thecapacity to store or install fast, if not bring it up during the pre-bidconference. Special arrangements may need to be made and included.

Gone are the days of storing interior materials anywhere. Architecturalinterior finishes constitutes a significant source of air pollutants. Toeliminate mold and other contaminates outdoor storage or immediateinstallation after arrival on site is recommended. This procedure isespecially an issue in projects requiring an Indoor Air Quality ManagementPlan. If required, identify early whether your potential project has thecapacity to store or install fast, if not bring it up during the pre-bidconference. Special arrangements may need to be made and included.

Step 3 RecapStep 3 Recap

1. Communicate clearly, early and often on submittals and onsiteprocedures.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 anyconstruction project. Many project managers

want to know how a green building affectsthe scheduling and planning of their project.Green buildings projects are not stressfulwhen viewed with the overall project in mind.However the first thirty days of constructionand the last thirty days prior to occupancy orsubstantial completion can be stressful if notplanned correctly.

First 30 days.

In addition to the regular start-up activities, there are several plans to write andimplement. Having a good start to these plans can alleviate stress and strain onthe project. For your toolbox, create the following company templates:

SWPPP: Update your stormwater pollution prevention plan to ensure allLEED and CALGreen requirements are addressed.

Construction Management Plan: Know where the local facilities are fordiversion and salvaging.

Indoor Air Quality Plan: Know a trusted air quality testing agency andyour companys procedures. Be aware sometimes, the specificationindicates the testing company to utilize.

Action Plan: Create forms for subcontractors to ensure your team isachieving its project goals, like recycled content, regional materials, etc.Because these credits are based on cost, do not assume the architect hascompleted 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 thesmaller the vendor, the longer the lead times. Create a standard formidentifying these materials to discuss with the owner. This form shouldallow for early buy-out of these items.



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Last 30 days.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 thecloseout of green building projects. However, this is more desirable to thealternative of finding the problems a few years after the project opens. Threecommon requirements during the closeout phase are:

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 thecloseout of green building projects. However, this is more desirable to thealternative of finding the problems a few years after the project opens. Threecommon requirements during the closeout phase are:

Air Quality Testing: This ensures the contaminant levels of the projectsare below allowable limits. Ensuring VOC credits are met, air distributionsystems are protected, and materials are properly stored will lead topassing the test.

Air Quality Testing: This ensures the contaminant levels of the projectsare below allowable limits. Ensuring VOC credits are met, air distributionsystems are protected, and materials are properly stored will lead topassing 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 notlimited to, HVAC&R, lighting, daylighting controls, hot water systems, andrenewable energy systems.

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 notlimited to, HVAC&R, lighting, daylighting controls, hot water systems, andrenewable energy systems.

Green Building Documentation: Completing and uploading theconstruction efforts is the construction teams responsibility. It isrecommended that as soon as the owner receives the buildingcommissioning report and the air quality test are completed, thedocumentation should be submitted. For instance, LEED reviews takeabout 6 to 8 weeks (slower during holiday seasons). Some owners hold

the final retainer until the documentation have been achieved sufficiently.

Green Building Documentation: Completing and uploading theconstruction efforts is the construction teams responsibility. It isrecommended that as soon as the owner receives the buildingcommissioning report and the air quality test are completed, thedocumentation should be submitted. For instance, LEED reviews takeabout 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.Here is a general schedule from toolbox creation to project closeout.

Prior to Proposing on a Green BuildingPrior to Proposing on a Green Building

1. Re-evaluate your current insurance carrier and scope of insurance;can your company get coverage?

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 greenbuilding consultant.

2. Add experience through training, hiring and/or contracting with a greenbuilding consultant.

3. Revisit your companys current operations and management software.3. Revisit your companys current operations and management software.

4. Create templates for various site management plans needed duringconstruction.4. Create templates for various site management plans needed duringconstruction.

Pre-BidPre-Bid

5. List unfamiliar materials and ask for clarification.5. List unfamiliar materials and ask for clarification.6. Determine if site restrictions will prohibit indoor storage or immediate

installation of interior materials.6. Determine if site restrictions will prohibit indoor storage or immediate

installation of interior materials.



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Step Five: Give A 110%

Unlike in cheesy motivational speeches from aowner to its sale managers, giving 110% in green

construction is a reality. Giving 110% simplymeans achieving 10% more to account for amargin of error. However, it also means doeverything you are already doing to make yourbusiness successful and go the additional 10% toadd green building to your business strategy. Twokey areas where giving 110% are vital includesgetting the project and doing the project.

Overachieving Green = Compliance

Dont expect that doing the minimum amount of work will succeed. Greenbuilding reviewers are very sharp and will reject anything without sufficientdocumentation. As a general rule, if your team needs 10 points to achieve yourgoal, 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 yourteam will get comments back. Similar to building permitting, it is very rare thatthe documentation is completely correct the first time around. Please note, alsosimilar to permitting, the reviewer may not point out all your mistakes in the firstround of comments. However, the difference between LEED reviews and

building permits reviews is with LEED your team only gets comments once, afterthat it is denied rather or not you got a comment. Fair, maybe or maybe not, butit is the reality. Giving 110% equals a better chance at compliance.

Because your company is creating your winning toolbox, your team has theability to anticipate early where you need more cushion and determine your bestactions. Your toolbox will give your company the ability to start bidding andwinning green building bids.



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Preparation Needs OpportunityPreparation Needs Opportunity

While knowing the logistical aspects of green building is a great foundation, itdoes not make a difference unless your companys potential clients see the workyour team has done to prepare. After preparing your toolbox, add these items to

your website and marketing materials:

While knowing the logistical aspects of green building is a great foundation, itdoes not make a difference unless your companys potential clients see the workyour 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 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 qualityprocedures, etc.)

Show or address examples of how your company has integrated greenfeatures in past projects (for instance, site stormwater runoff protection,white roofs, efficient plumbing, recycling, salvaging, indoor air qualityprocedures, etc.)

Add green facts related to construction; check with common vendors fortheir latest news.

Add green facts related to construction; check with common vendors fortheir latest news.

Do press releases for new LEED AP staff and other green buildingachievements.

Do press releases for new LEED AP staff and other green buildingachievements.

See what your competitors who have already gone green are doing anddo 10% more.

See what your competitors who have already gone green are doing anddo 10% more.

Step 5 RecapStep 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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About the Author

Monique Lee, LEED AP supports mid-sizearchitectural and construction firms who are

struggling to win green building projects. Shetrains and supports her clients to beknowledgeable, confident, and safely navigatethe green building industry. Moniques writingsand work has been featured in severalmagazines including Urban Land, RetailConstruction and an American Institute of

Architects (AIA) White paper. Her personal motto and teaching style is derivedfrom an Albert Einstein quotation, Most of the fundamental ideas of science areessentially simple, and may, as a rule, be expressed in a languagecomprehensible to everyone.

Monique is the owner of Simply SustainableConsulting; a green building firm located inOakland, California with extensive experience inLEED and other green building regulationsthroughout California. Simply SustainableConsulting was formed in 2008 and has beeneffective in various projects types includinginterior construction, health care, and libraries.

Small Enough toListen, Experienced

Enough to OfferPractical, Realistic

Solutions

SSCs Green Building Tools and Services

Green Building Toolbox Creation/Executive CoachingProject TeamingIn-house Interactive TrainingsWebinars and TeleclassesProject-Based Consulting Services

Copyright 2011 - 2012. All rights reserved. Simply Sustainable Consulting hereby authorizesyou to electronically copy pages of this document herein solely for the purpose of transmitting orviewing the information. You may not republish without written permission.

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