If you were to survey green building critics, it’s safe to guess most will argue that the cost to build green do not outweigh the benefits.

Indeed, many have suggested that the cost of building green (especially gaining LEED certification) is significantly higher than building to ordinary standards.   Others argue that LEED certification can be achieved through an everyday budget.

Regardless of where you fall on this issue, everyone should agree that green building projects have certain specifications, and bidding contractors must project the construction costs responsibly.

And so, one of the most challenging components of a constructing a green building may be the process of bidding it.

Since green building work is just starting to take hold in the construction industry, many contractors and subcontractors are working on little-to-no experience on green projects.   And sometimes the data behind green building techniques and products are thin (see greenwashing).

On Wolfe Law Group’s Construction Law Monitor, we published a 2-part article on the Bidding Process and Change Orders:   Bidding Errors and Change Orders: Avoiding a Nightmare [Part One and Part Two].

How do we suggest you avoid Bidding Error nightmares?   Spend time with the Contract Documents pre-bid.

With green building projects, this is more true than usual.

When preparing your green bid, here are some example thoughts that should be considered:

• If the project is being certified with LEED or another standard, who will be responsible for the submittal process?   Who will be responsible for monitoring the construction process?
• Contact vendors who will be providing the project’s materials, and review the data they have to back-up their performance and environmental claims.   It would be a pity to plan on using one product, and being forced to later use a more expensive substitute.   See this article on how to shop for green building materials.
• If the builder is anticipating a tax credit, do you understand the requirements to qualify for the credit?   Will this increase your construction costs?

A successful green building project starts where successful ordinary projects begin:  during the bidding and contracting period.

Whether your green building project will increase costs, or not, understand the green building expenses associated with your project, and avoid bidding errors and change order nightmares.

At the crux of the changeover happening at the US Green Building Council, Doug Reiser (Im writing in 3rd Person – sorry) was able to sit for the LEED AP examination last week. I am happy to report that I passed the examination and was granted accreditation from USGBC.

Now, Wolfe Law Group, LLC has the only two registered LEED AP attorneys in the State of Louisiana (attorney Scott G. Wolfe was the first LEED AP attorney in the state). We anticipate (and hope) that more will join us in the future, as we believe that it is vital that more construction attorneys open their eyes to Green Building, and the goals that are served by this practice.

The USGBC is changing over to LEED v.3, which creates new standards for accreditation and more user-friendly access for the LEED process. The USGBC describes it:

“The new version of LEED Online is faster, smarter and a better user experience. It is designed to be scalable and more robust, through improved design, a more intuitive user interface, better communication between project teams and certifying bodies, and upgrades that respond to the changes in the LEED 2009 rating system.”

The new process is much more intensive, requiring extended examination. However, we highly recommend that you construction attorneys in the great State of Louisiana take the time to get to know the LEED process and the benefits that can be obtained by your client’s use of these practices.

Here at LA Green Law, we intend to continue to provide up to date information on Green Building’s progress in Louisiana.

Just recently, the U.S. Green Building Council published an update to its readers explaining Risk Management issues to its readers, explaining that while green building is growing even in the current U.S. Economy, it presents unknowns that makes it difficult for the industry and insurance underwriters to manage risks.

Here is a snippet:

Underwriting insurance coverage is the art of understanding, assessing, and mitigating risk. Green building has presented challenges to insurance carriers stemming from the fact that green building design and construction is new. New things are tougher to understand from a historical loss perspective, requiring leading insurance carriers to take a proactive approach to understanding the possible ramifications of providing expanded coverage to meet the needs of firms engaged in the green building industry, while anticipating the market demand for these specialty insurance products.

As mentioned in previous posts, as the green building market continues to boom, green litigation and losses becomes more likely.   What if the planned LEED certification is not achieved?  What if the design is not as energy efficient as planned?

And the questions go on and on.

One question that is still unanswered, as hinted by the USGBC above, is with regard to Risk Management & Insurance.

In December 2008, Wolfe Law Group published an informative article on its Construction Law Monitor titled Green Building Insurance & Limiting Exposure.   The article discusses the need for specialty insurance, the packages available to contractors and the idea of green building performance bonds.

Just last week, ACE USA announced the launch of a Green-Specific Contractors Insurance Program, joining the ranks of companies like Fireman’s Fund, Travelers & AON.

Like everything else in the green building industry, the waters here are untested.   While we can read the policies and the brochures on the policies, it’s too early to determine what types of claims will be paid versus those denied, or the role green building insurance will play – or ever play – in protecting a contractor from professional liability losses.

Scott Wolfe Jr., founding member of Wolfe Law Group and contributor to the Louisiana Green Building Law blog, is now a LEED AP (LEED Accredited Professional).

Scott passed the LEED AP exam on Friday, April 10th.

The US Green Building Council describes the LEED AP rating on its website as follows:

LEED Professional Accreditation distinguishes building professionals with the knowledge and skills to successfully steward the LEED certification process. LEED Accredited Professionals (LEED APs) have demonstrated a thorough understanding of green building practices and principles and the LEED Rating System.

Scott is one of 212 LEED APs listed in the Directory under Louisiana, and will be the first Louisiana AP listed in the Legal category.