Awards: 2004 Institute Honor Awards for Interior Architect
Project: First Presbyterian Church of Encino; Encino, Calif.
Firm: Abramson Teiger Architects
Client: First Presbyterian Church of Encino, Pastor Malcolm Laing
Photo: Richard Barnes
 

   
 
  AIA Home :: The Cost of Green Revisited
 
 
 

Become a Member
Renew Your Membership
Careers
Contract Documents
Architect Finder
Find Your Local Component
Find Your Transcript
Soloso

COTE/Sustainability
State/Local Chapters
Allied Organizations
Writing the Green RFP
AIA/COTE Highlights
Ecological Literacy in Architecture Education
AIA/COTE: A History Within a Movement
Walk the Walk
 
Knowledge Communities
AIA Library and Archives
Related Web Sites
Become a Member
AIA eClassroom
 
 
Healthcare 101 - Surgery: Technical Aspects
Web Seminar
December 9, 2008
 
AIA Design-Build Documents: The Tried, True, and New
Web Seminar
December 9, 2008
 
Design for Aging Post-Occupancy Evaluations
Web Seminar
December 10, 2008
 
Incorporating Disaster Risk Reduction Into International Humanitarian Community Disaster Responses: A Review of Recent Experience
Web Seminar
December 15, 2008
 
Healthcare 101 - Surgery: Operational Considerations
Web Seminar
December 16, 2008
 
View Calendar
 
 
 
 |  
 

The Cost of Green Revisited

Reexamining the Feasibility and Cost Impact of Sustainable Design in the Light of Increased Market Adoption
by Lisa Fay Matthiessen and Peter Morris
 

(Davis Langdon, 2007)
Review by Pauline Souza, AIA

Engaging in conversations about sustainability these days is not difficult. Subconsultants, builders, and clients are conversant in the details of energy efficiency, life cycle cost, resource management, air quality, and even carbon footprint targets. While talking about sustainability is easy, truly integrating green design into the DNA of a project often remains a challenge, one that more often than not hinges on the perceived cost of going green.

Davis Langdon explored this topic in its 2004 report, Costing Green: A Comprehensive Cost Database and Budgeting Methodology. The study built on its extensive database, developed from its core practice as one of the premier estimating firms, responsible for hundreds of projects each year. The company had begun to notice a growing trend in client requests for green cost itemization. The assumption was, and still is, that green design features should be analyzed as individual components, project additives as opposed to the building blocks of program, and that these costs always increase project costs. In other words, going green always costs more.

In their report, Lisa Fay Matthiessen and Peter Morris analyzed approximately 600 projects in 19 different states, using a balanced sample of common project types—academic buildings, laboratories, hospitals, offices, and parking structures. Each sample included projects that were developed per conventional standards (without stated sustainable objectives) versus projects that were developed per the U.S. Green Building Council’s (USGBC’s) Leadership in Energy and Environmental Design (LEED®) system (their measure and validation of green building). All projects were normalized for comparison—taking into account location and date.

The study revealed that many LEED-rated projects cost the same as projects with no stated green goals. In fact, many projects with LEED level ratings often cost less than non-LEED projects. At the same time, the opposite was often true. In other words, Davis Langdon found no direct correlation between higher costs for going green and lower costs for conventional building.

During the past several years we have witnessed a phenomenal climb in construction costs. Simultaneously, we have experienced increased client demand for integrated design and sustainable buildings. Universities, private organizations, school districts, counties, and cities have begun to require benchmarks for energy efficiency, LEED levels, and resource management in a majority of their projects. The number of requests for proposals requesting some level of sustainability as a project goal is now the norm rather than the exception. These trends have changed the nature of doing business.

In the report Cost of Green Revisited, released in July 2007, Davis Langdon reexamined the cost of going green based on its last two years of data in an effort to understand the mutual impacts of these two trends—rising construction costs and growing demand for green buildings.

With the addition of 221 projects to their analysis—83 of which were not actively seeking a LEED level—they reviewed the data with a similar approach to the one they took in 2004. Davis Langdon found that despite rising construction costs projects still managed to attain their sustainable goals within budget. LEED-certified and LEED Silver projects were in the “same cost range as non-LEED projects”. Likewise, many LEED Gold projects were completed within budget or at no more than a 10 percent added cost. Though construction costs have continued to rise dramatically, often at 1 percent per month, many clients continued to pursue LEED rating for their projects. As Matthiessen states, “the cost of green cannot be a major (cost) issue or LEED measures would be eliminated as part of a VE process.”

What the report suggests is a trend in thinking that transcends the notion of sustainability as a line item cost. There is a greater understanding that true sustainable design can be achieved if the desire is there and the value of sustainable approaches and systems is recognized. When sustainability is valued it does not “cost” more because it is as much a part of the project as any other project component—any wall, window, or door. Factored in at a programmatic level, green can not be parsed from its integrated whole or singled out as a line item. Going green does not put a project above budget because the project’s budget is built around it. Conversely, if sustainability is not part of the value system, it will always be perceived as costing more.

Architecture is ultimately about choices and weighing one benefit and cost against another. Studies like Davis Langdon’s can be invaluable in helping us engage our clients and project teams in these nuanced conversations about core values and costs.

Pauline Souza, AIA, LEED Accredited Professional, is an associate partner and the director of green services for WRNS Studio. She has 24 years of management and design experience, focused on facilities for the education, transportation, and civic sectors. Her career has been dedicated to the building and advocacy of learning places that promote the health, well-being, and education of school children and school staff. Souza currently is serving as for a new 200,000-square-foot high school in Livermore, Calif. and several projects for the Hillsborough City (Calif.) School District. These projects employ both the Collaborative for High Performance Schools (CHPS) system and the LEED for Schools benchmark system. Souza also has participated in greening the Hillsborough City School District Standards.

See the Davis Langdon report at http://www.davislangdon.com/upload/images/publications/USA/The%20Cost%20of%20Green%20Revisited.pdf .