However, in reality, these green risks are actually quite similar to
traditional construction or non-green construction exposures, with the
exception of building information modeling. This is because most of the
risks are merely examples of elevated design innovations that use new or
experimental products to significantly raise expectations of "living"
building benefits.
For example, a LEED-certified hospital was recently completed on time and
within budget. But, after several weeks of occupancy, the administration
reported numerous warm and humid spots throughout the building. An
investigation then determined that the heating, ventilation, and
air-conditioning systems were all undersized, resulting in a restricted flow
of air to various parts of the building. Design and installation errors, not
green building, were then to blame for these problems and resulting
litigation.
That said, what is "new" is the potential economic loss associated with
achieving less than expected green levels or certification, resulting in
lost tax credits and program funding. In the case of
Southern Builders v. Shaw, a 23-unit condominium was constructed in
Maryland. The project was to be designed and constructed to be LEED Silver
certification. Although there are many facts and issues surrounding this
case, simply put, the project did not achieve LEED Silver, and Shaw
Development lost green tax credits under Maryland's green incentive program.
Shaw sued for the $635,000 in lost credits, and the matter settled out of
court.
Big Expectations Based on Even Larger Promises
If common words such as "green design" or "sustainable construction" are
researched on Google, Yahoo, or other popular search engines, the results
are likely to include statements like "environmentally conscious
engineering," "historically sensitive innovation," "creating opportunities
through sustainability," "energy-efficient," and "green apartments rent up
faster than others." Although no one doubts that sustainable construction is
an attractive concept, it should be understood that there is still a lot to
be learned and understood.
An example includes the bamboo flooring of a "state-of-the-art"
condominium project. The flooring started to buckle near completion. After
some investigation, it was discovered that the "environmentally friendly"
adhesive selected by the subcontractor was the cause. The flooring had to be
totally replaced, costing about a month of additional building time and
numerous other material expenses.
Similarly, vegetative roofing systems, water walls, geothermal heating
and cooling systems, and solar panels all offer potential energy and cost
savings. But, there are concerns. For instance, at one commercial building,
a vegetative roofing system began to show structural problems after
particularly heavy rainstorms. The problem was that the system was neither
designed nor equipped to hold as much water as it had received. Is this
another example of traditional design error or "new" sustainable design
error?
Buyer Beware
Consequently, building owners must remain diligent about the processes
and products used by design professionals and contractors to deliver the
expected outcomes. This includes being mindful of deceptive advertising and
marketing techniques like "greenwashing," which entails overselling the
environmental-friendly benefits of products and services. Does the product
or process have the track record needed to bring certainty to the design and
construction of the project?
Albeit, over the past 5 years, there had been great advancements in
expertise, another consideration is the building industry's general lack of
green experience and expertise. To meet demand, it seems as if many firms
rushed into sustainable projects without properly understanding the building
codes, statutes, and other requirements currently being developed to address
sustainable construction issues. Moreover, it appeared many were taking
advantage of the simple phrase "green construction." Never defined, it could
have so many meanings.
Therefore, everyone involved should be wary of claims or demands that are
uninsurable. In fact, catastrophic results can occur when firms guarantee
that a building will be built to a certain LEED certification level or they
contractually link occupant satisfaction with environmental design. There
are actually documented instances of building tenants who were "promised"
employees would be happier, healthier, and more productive once the green
upgrades were completed, only to find that productivity was actually down
after a year and that performance had little or nothing to do with building
lighting, air quality, or architecture.
Finally, no one can deny that building "green" offers many positive
advantages. However, it also comes with risks, and design professionals,
contractors, and building owners who best understand and manage these risks
will undoubtedly profit in this new environment.