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

2. Jim Sullivan, M.B.C. Today’s Goals Discuss 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

3. Jim Sullivan, M.B.C. 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.

4. Jim Sullivan, M.B.C. VE Common Systematic Approach Within Constraints Information phase Creative phase Judgment phase Analysis phase Development phase

5. Jim Sullivan, M.B.C. Cost of ‘When’ Change Occurs Cost Time

6. Jim Sullivan, M.B.C. Change in construction typically Effects Time, Cost, and/or Quality TIME Change COSTQUALITY

7. Jim Sullivan, M.B.C. 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 implementation Timing of implementation Size of building Point synergies

8. Jim Sullivan, M.B.C. USGBC and LEED USGBC is a non-profit promoter of sustainable alternatives. USGBC developed LEED program (www.usgbc.org).www.usgbc.org Goals of USGBC: Define ‘green’ brand Transform the construction marketplace Raise consumer awareness Note goals do not state “hug trees.”

9. Jim Sullivan, M.B.C. 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

10. Jim Sullivan, M.B.C. LEED Certification Levels Certification LevelPoints Certified26 to 32 Silver33 to 38 Gold39 to 51 Platinum52 or more Total Available Points69

11. Jim Sullivan, M.B.C. LEED Points CreditsCategoryPoints 3Water Efficiency5 7Materials and Resources13 8Sustainable Sites14 8Indoor Environment Policy15 6Energy and Atmosphere17 Subtotal64 Innovation and Design4 LEED AP1 Total69

12. Jim Sullivan, M.B.C. “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.

13. Jim Sullivan, M.B.C. “VEing” a LEED Project As 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)

14. Jim Sullivan, M.B.C. 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.

15. Jim Sullivan, M.B.C. 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

16. Jim Sullivan, M.B.C. SS – Sustainable Sites (14 points) Prerequisite: Erosion Control Site 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 points Light Pollution Reduction (1 point)

17. Jim Sullivan, M.B.C. WE – Water Efficiency (5 points) Water Efficient Landscaping (2 points) Innovative Wastewater Technologies (1 point) Water use reduction (2 points)

18. Jim Sullivan, M.B.C. EA - Energy and Atmosphere (17 points) Three Prerequisites: Commissioning, Energy Performance, and CFC Reduction Optimize Energy (10 points) Renewable Energy (3 points) Additional Commissioning (1point) Ozone Depletion (1 point) Measurement and Verification (1 point) Green Power (1 point)

19. Jim Sullivan, M.B.C. MR – Materials & Resources (13 points) Prerequisite: Storage/Collection Recyclables Building 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)

20. Jim Sullivan, M.B.C. EQ – Indoor Environmental Quality (15 points) Prerequisites: Minimum IAQ, ETS Carbon 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)

21. Jim Sullivan, M.B.C. ID – Innovation & Design (5 points) Innovation Design (4 points) LEED Certified Professional (1 point)

22. Jim Sullivan, M.B.C. “VEing” Summary Project 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.

23. Jim Sullivan, M.B.C. “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.

24. Jim Sullivan, M.B.C. 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.

25. Jim Sullivan, M.B.C. Green Light Strategies – Paul Shahriari, Consultant

26. Jim Sullivan, M.B.C. 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.

27. Jim Sullivan, M.B.C. 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.

28. Jim Sullivan, M.B.C. 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.

29. Jim Sullivan, M.B.C. GSA Data

30. Jim Sullivan, M.B.C. GSA Data

31. Jim Sullivan, M.B.C. 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.

32. Jim Sullivan, M.B.C. Davis Langon Typical for All Building Types

33. Jim Sullivan, M.B.C.

35. 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.

36. Jim Sullivan, M.B.C. 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.

37. Jim Sullivan, M.B.C. Literature – VE/Sustainability 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.

38. Jim Sullivan, M.B.C. Literature – VE/Sustainability 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.

39. Jim Sullivan, M.B.C. Conclusion VE 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?

40. Jim Sullivan, M.B.C. End