Wednesday, September 15, 2010

Profits: What should LEED cost?


In a recent commercial project John Koppe of Koppe-Wagoner Architectsreceived bids from ten contractors with a line item for LEED Process Oversight and Documentation.  “Although this wasn’t to be a deciding factor, we were curious when the number for this line item ranged from $5,000 to over $60,000 (twelve times the lowest bid). What’s your take on this variability?”  O’Brien & Company Principal Elizabeth Powers responds:  
ElizabethPowers-webActually, the range of bids doesn’t surprise me.   For the commercial projects O’Brien & Company has worked on over the years, I’ve seen a similar variability, and it has to do with the contractor’s level of comfort and expertise with the LEED Rating System. I can share anecdotally that for a contractor new to LEED it can take their project engineer up to a month of two of full time work to figure it out. On the other hand, we’ve seen contractors that have embraced LEED requirements and integrated them into their normal bid collection process. For these companies, they probably spend about 50 hours over the whole project, roughly equivalent to that $5,000 figure. And this is fairly consistent across construction types within the commercial sector.   
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