Engineering Inc. - September/October 2007 - (Page 36) BuSINESS INSIGhTS fROM ACEC’S INSTITuTE fOR BuSINESS MANAGEMENT The Risks, and ReWaRds, of ‘GoinG GReen’; MakinG desiGn-Build WoRk Weighing the Risks of Green Building It’s among the hottest topics in engineering: green building. With the environment taking on a more prominent role in the national consciousness, many corporations are looking to improve their image with Earth-friendly workspaces. There are plenty of reasons why many corporations are looking to “go green.” Worldwide economic growth is putting the squeeze on natural resources; a worsening water and energy crisis is accelerating the search for alternative power sources; and the prospect of reduced operating and maintenance costs has many firms weighing their options. But just as there are inherent advantages in environmentally conscious designs, there are risks and potential costs, too. Though green building is a viable option for forwardthinking owners, Tim Corbett, president and founder of SmartRisk, a national risk-management consultancy, says engineering firms and designers should first consider several factors, including: Cost: With upfront costs up to 30 percent higher than the average building, it’s often difficult to persuade cautious owners to pony up the extra cash, says Corbett. The key is to convince them that any additional upfront costs can be recouped during the lifecycle of the building via improved power and water efficiencies. Heightened expectations: Be upfront with clients about what they can expect. Is your firm capable of what it’s promising? If not, expectations need to be adjusted. Remember: Never promise more than you can provide. Warranties and guarantees: Don’t offer warranties and guarantees that expose your firm to future liabilities. Most professional liability insurance policies do not protect against unmet warranties or guarantees. For this reason, Corbett says, it’s risky for engineering firms to guarantee a particular level of green certification. Because the certification does not take place until after construction, making a promise and then failing to deliver could be catastrophic. Standard of care: As with any engineering project, owners expect perfection. Because green innovations are new and constantly evolving, it’s up to the engineering firm to make sound recommendations, hire experienced staff and be upfront about the project’s long-term expectations and goals. Training: Make sure the people who run and administer your facilities are properly trained to use cutting-edge environmental technologies and systems. Not unlike a car engine, Corbett says, buildings have to be properly maintained. 36 ENGINEERING INC. SEPTEMBER / OCTOBER 2007 in design-Build, Communication a Two-Way street There are several advantages to design-build delivery systems. Not only does design-build have a reputation for fulfilling owners’ demands for quick delivery, but the process also allows for early collaboration between the builder and designer, a clear picture of costs and, in many cases, reduced claims. But success is never a sure bet. To exploit the advantages inherent in design-build delivery methods, firms must cultivate an open, reliable and unfettered dialogue between the project designer and the builder, says Rich Benton, a design consultant who specializes in project-delivery best practices. Successful design-build firms often entrust this responsibility to their design manager, typically an employee of the builder. Firms select a licensed professional (i.e., registered architect or professional engineer) to fulfill this role since that individual can “span the gap” between the disparate cultures of the builder and designer. According to Benton, such individuals should focus on the following critical tasks: n Coordinating and managing the schedule of design deliverables that meet the needs of the builder and owner; n Ensuring participation of the builder early in the design process to get early constructability reviews; n Managing the process of timely consideration of alternatives and innovation; n Managing the review of contractor submittals by the designer to ensure compliance with contract requirements; n Coordinating the release of design documents to the owner— only after there is design commitment (i.e., the design meets the contract requirements and is affordable within the contract price); and n Resolving conflicts between the builder and contractor. Where are these talented individuals found? “The pool isn’t very deep,” explains Benton. “But in addition to professional licensure, one credential that helps is Designated Design-Build Professionals, as those individuals have experience and the requisite knowledge.” n The ACEC Institute for Business Management provides comprehensive and accessible business management education for engineering company principals and their staffs. Visit http://www.acec.org/calendar/eventList.cfm for a complete listing of ACEC programs. http://www.acec.org/calendar/eventList.cfm
For optimal viewing of this digital publication, please enable JavaScript and then refresh the page. If you would like to try to load the digital publication without using Flash Player detection, please click here.