Green building can be lining your pockets with green, as long as you plan ahead, stick to the details, and avoid mistakes that take your project into the red.
As a builder, your main line of protection is a well-written contract. A contract that spells out what your project is trying to achieve and who is responsible for completing each part of the job. The important green parts of the contract need to be worked out in advance during open discussions among the designer, contractor, and owner. At that point it is also important to figure who will file the paperwork for greenness certification. The filing requires a fee and filling out complicated paperwork. It is important to note in the contract exactly who will be responsible for paying for and filing the green certification.
Will the Real Referenced Standards Please Stand Up?
It is not enough to say in the contract that the project will be green - the contract must specify the standard your project will try to meet. Will it meet LEED, GreenPoint Rated, NAHB Green, or some other standard that you and the clients choose? There are on-line classes for the LEED certification posted on the Web. The NAHB has just produced a book entitled National Building Green Standard, a new standard for which they, in conjunction with the ICC (producers of the IRC and IBC) have gotten certification. The National Building Green Standard explains all the steps necessary for meeting four threshold levels of green certification -- bronze, silver, gold and emerald.
Owners are not asking for green building just so they can market new buildings more creatively. In many cases, owners or developers are planning for new state, or federal, tax credits in response to building green. It is extremely important to know the requirements of the incentives they are shooting for, since different government agencies may adhere to different standards. For example, some municipalities may require LEED certification or the equivalent, to qualify for tax credits, while others may prefer the NAHB Green. For now, the battle rages for the real Green standards until one dominant agency prevails. It is best to check what your local municipality requires.
Builder Beware
As the builder, make sure that the owner is clear that you do not guarantee or warranty that his project will achieve a green certification. Many of these standards have only recently been developed, and are complicated to understand -- let alone build to. Many of the products specified may be new and unproven and not yet ready for a warranty. A builder should never promise in writing to build to or conform to a certain green level -- that implies that you can guarantee to achieve it. You might write that you will try to meet the standard. You may want to include a protection clause in your contract that points out that the materials you will be using are new and unproven for long-term warranties.
Green Subs On Board
Always make sure you reference the exact requirements for green certification in your subcontracts. That way the subs are on board and it is all in writing. Make sure when soliciting bids that subs know that this is a green project and that it may involve new equipment, materials, and methods. Going over the requirements with your subs in advance will improve the team effort to meet the goal of green certification and lessen the risk of them reverting to their comfort zone -- the old easy way -- rather than the way to meet certification -- when something goes wrong, or a new piece of equipment does not install as planned.
With a little diligence, you can become adept in a new area of construction contracting that is rapidly growing, where your services will be in demand, and where there is money to be made.
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