LEED Construction Is it Worth the Cost?

1. LEED Construction
Is it Worth the Cost?
Prepared for
Mrs. Anastasia Britt
CSM 305 Students Fall 2011
Ohio State University
Columbus, Ohio
Prepared By
Margaret Ramsey
Josh Clemens
Neal Dudash
November 21, 2011

2. FABE Construction Systems Management 305 Students
Ohio State University
Columbus, OH 43210
November 21, 2011
Mrs. Anastasia Britt
FABE Construction Systems Management
Ohio State University
Columbus, OH 4320
Dear Mrs. Britt:
Here you will find the report you requested in Construction Systems Management 305,
our groups chosen topic, “LEED Construction is it Worth the Cost?” and our
recommendation.
During the research of the topic, our team considered the additional costs by using
materials required to obtain LEED certification for a newly constructed building. Also we
included the examples of materials used during the construction of the new Ohio Union,
a LEED Silver building, and the features that make it unique. Our findings show that
while LEED may add additional cost to a new building that the benefits out way the
initial costs. Additionally these costs can possibly be offset by rebates from local, state,
and federal governments.
The United States government requires that all new government buildings be built to
LEED certified standard, and any major renovation over 2000 square feet also be built
to LEED standards.
The information contained within this report came from several helpful resources. The
US Green Building Council, RS Means, and numerous smaller sources provided current
and past information on LEED construction.
Thank you for allowing us to conduct this research. We have learned that LEED
construction while it adds additional cost to a new building; it is the wave of the future in
the construction industry.
Sincerely,
Neal Dudash
Margaret Ramsey
Josh Clemens
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3. Table of Contents
Letter of Transmittal...........................................................................................................i
Executive Summary.........................................................................................................iii
Introduction.......................................................................................................................1
What is LEED Construction?.................................................................................1
LEED Rating System.............................................................................................1
The Five Main Categories of LEED.......................................................................2
The Cost of LEED Construction........................................................................................2
Soft Costs..............................................................................................................3
Registering Costs...................................................................................................3
Documentation Costs and
Effort.................................................................................................................................3
Cost of Research and Design................................................................................3
Cost of Commissioning and Modeling...................................................................3
Greening Costs.................................................................................................................3
Overall Cost of a LEED Building.......................................................................................4
Current LEED Buildings....................................................................................................4
Incentives for LEED Buildings................................................................................4
Ohio Union.............................................................................................................5
Difficulties Assessing the True Cost of LEED Buildings...................................................6
Benefits of LEED Construction.........................................................................................6
Environmental Benefits..........................................................................................6
Economical Benefits..............................................................................................7
Reduction of Future Costs.....................................................................................7
Conclusion........................................................................................................................8
ii

4. LEED Construction
Is it Worth the Cost?
Executive Summary
In order to remain competitive in the construction industry today a construction manager
must know how Leadership in Energy and Environmental Design affects how they do
business and with who. A LEED building adds additional costs to a project; however
with the added tax benefits, and government requirements to build LEED building for
new government projects, it is a necessity that a construction manager be LEED
certified.
Our research shows that while the current cost of LEED construction is higher than the
cost of a more traditional building, it is expected that the cost for a LEED building will
eventually fall in the same price range a traditional building.
There are several needs that a construction manager must have prior to beginning the
process of constructing a LEED building.
1. Obtain LEED Certification. Obtaining LEED certification requires that a
construction manager have prior documented working experience on a LEED
project before taking the LEED Accredited Professional Exam. However if the
manage does not have prior LEED experience he/she may obtain LEED
Associate Certification.
2. Evaluate suppliers and their ability to supply material needed. LEED requires
materials that may need to specially made for the project. LEED materials also
need to be sourced locally whenever possible or reclaimed materials from
building that have been salvaged.
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5. LEED Construction: Is It Worth the Cost?
Page 1
Introduction
Leadership in Energy and Environmental Design (LEED) construction is a relatively new
concept in the building industry. Developed with the goal of promoting sustainable or
“green” environmentally friendly buildings, LEED has experienced a significant increase
in popularity over the last five years. While it is generally a safe long-term investment
and its benefits to the environment are well-known, the cost to build a LEED-certified
structure is greater than one built in a conventional manner. The question that we plan
on exploring; is it worth the cost?
What is LEED Construction?
The United States Green Building Council (USGBC) was established in 1993 with the
goal of promoting sustainability in buildings throughout their life cycles, from conception
and design through construction and operation. Soon after opening its doors, the
USGBC realized that to effectively promote its goals it would need a way to measure
just how environmentally friendly a building is in comparison to other buildings and thus
began development of a rating system. Version 1.0 of Leadership in Energy and
Environmental Design (LEED) was launched in 1998, then tweaked and modified over
the next two years to become LEED Version 2.0, launched in March of 2000 (History of
LEED, 2011).
In its early years, LEED certifications were somewhat of a novelty. In general it is more
expensive for a project to achieve certification than to complete construction using
conventional methods and materials and the benefits were not immediately visible to
many builders. In its first four years of existence there were fewer than 100 buildings
registered as LEED certified. From 2004 to 2007 the number of LEED certified projects
began to steadily increase as “sustainability” and “green building” became industry
buzzwords. From 2007 to 2008 the number of LEED certified projects nearly doubled,

6. LEED Construction: Is It Worth the Cost?
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going from 543 to 982, and then more than doubling in 2009 with 2,089 projects
receiving LEED certification (Green Building Insider, 2010). As the long-term benefits of
green building and energy efficiency become more widely visible and publicly known,
the demand for LEED certification has greatly increased and is expected to continue its
upward trend.
LEED Rating system
The LEED rating system is based on a 100-point scale with divisions for different ranks
or certifications for achieving a set number of points. For example, a project that earns
40 or more points on the LEED scale is considered LEED Certified, a project earning 50
or more points is LEED silver, 60 or more points is LEED Gold, and 80 or more points is
LEED Platinum. The points themselves are weighted to represent the impact that each
individual item can have on the environment, with items representing a greater impact
receiving more points on the LEED scale. The “Sustainable Sites” LEED category
clearly shows this distinction when looking at the options available for alternative
transportation. If a project provides a bicycle storage area it will earn 1 point and if it
provides adequate parking capacity it will earn 2 points, but if it provides easy access to
public transportation the project can earn 6 points for maximizing its environmental
impact. There are also certain items that are not optional, such as prevention of
pollution during actual construction and careful storage and collection of recyclables.
These items are non-negotiable for LEED certification and do not earn the project any
points (Leadership in Energy and Environmental Design, 2011).
The Five Main Categories of LEED
There are five main categories that are assigned points under the LEED system. The
first category is sustainable sites: covering items such as construction activity pollution,
site selection, brownfield redevelopment, alternative transportation, light pollution, and
storm water drain design. The second category is water efficiency: covering water use
reduction, water efficient landscaping, and innovative waste water technologies. Third is
the energy and atmosphere category: including on-site renewable energy, optimized
energy performance, enhanced refrigerant management, and green power. The fourth
category includes materials and resources: such as use of recycled products,
construction waste management, use of regional materials, and use of rapidly
renewable materials. The fifth category is indoor environmental quality: covering lowemitting materials, use of daylight and provided views, controlling building systems,
increased ventilation, and the construction indoor air quality management plan for
before and during construction. There are also 10 bonus points available that fall into
their own categories and include the use of innovative design, employing the services of
a LEED-accredited professional, and using design that incorporates regional needs
(Leadership in Energy and Environmental Design, 2011).

7. LEED Construction: Is It Worth the Cost?
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The Cost of LEED Construction
The cost of LEED construction can vary depending on the amount of “greenness” the
building has in it. Since the amount of “green” materials that are put in the building
determines the LEED rating of the structure that will also determine the amount of cost
that will be incurred during the project. One thing is certain, that obtaining LEED
certification adds to the cost of a project. Determining exactly how much becomes the
difficult part. There are two basic categories of expenses associated with LEED
construction, “soft” costs and “greening” costs. With soft and greening costs combined,
it is estimated that LEED certification can add between 4% - 11% to a project’s overall
construction cost (Northbridge Environmental Management Consultants, 2003).
Soft Costs
Soft costs can best be described as overhead costs. They include fees to register and
certify your project, the cost of documentation and effort, cost of research and design,
and the cost of commissioning and modeling for compliance. Many of these costs are
able to be quantified. The difficulties in establishing costs are the ones that are not able
to be quantified easily. It is estimated that 1% - 5% of the construction costs will be
attributed to these soft costs (Northbridge Environmental Consultants, 2003).
Registering Costs
The cost to register and certify a LEED project is approximately 3 to 5 cents per square
foot, and the size of the project determines where in the range that the cost will lie. For
example, smaller projects tend to be on the high side (Understanding the Cost of LEED
Project Certification).
Documentation Costs and Effort
The cost of documentation and effort is a category that can cost a lot or a little
depending on the amount of experience of the person in charge of compiling and
submitting LEED documentation. If that person is new to running a LEED project, then it
can be very time consuming and cost the company a lot of money. The problem that
construction companies run into is that there is no “how-to” book that simplifies the
process, and navigating it is more of a trial-and-error process. That means that until the
construction company has had some experience with LEED, it will cost them more to
pay for the time involved in figuring it out (Northbridge Environmental Management
Consultants, 2003).
Cost of Research and Design
The cost of research and design is another category that can incur extra costs if it is one
of the first times that the design team has worked on a LEED project. One of those

8. LEED Construction: Is It Worth the Cost?
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reasons is because design teams may find it difficult to understand the principles behind
sustainable materials. Therefore implementing them into the design can cause
confusion and even mistakes. When there are mistakes from the design end that can
cause a domino effect throughout the project. “Incorporating green design in mid-project
can lead to added cost, due to redesign and additional change orders” (City of
Bloomington, page 1). Also, it may be difficult to find manufacturers who can produce
these materials, which can result in time being paid to these design teams to find them
(Leadership in Energy and Environmental Design, 2011). RS Means estimates that
designing a green building will cost an additional 5% of the project’s design cost
(Northbridge Environmental Management Consultants, 2003).
Cost of Commissioning and Modeling
The cost of commissioning and modeling for compliance can be a significant cost. It is
estimated anywhere between 0.5% - 3% of the construction costs, which are also
determined based off of the size or complexity of the project. This is unavoidable, as it is
a prerequisite for the LEED process. It involves a person or a team who is not
associated with the construction company or design team whose responsibility is to
ensure that the project is being built in accordance to LEED standards and
specifications. They are required to document compliance and to submit it to the GBCI
(Green Building Certification Institute) for review. The GBCI then determines whether
certification is awarded or not (Northbridge Environmental Management Consultants,
2003).
Greening Costs
Greening costs are best described as the added construction costs incurred to construct
a building with green materials. They include systems that use resources more
efficiently compared to those that are traditionally used in construction. Some examples
are more efficient heating, cooling and ventilation systems. Some may incorporate
lighting systems that use solar panels or maybe just a compact fluorescent bulb. Some
buildings will include products that will conserve water usage and even recycle the left
over grey water to feed their plants. All of the products require an added cost because
they are based off of new technology. It is difficult to determine exactly how much these
add to a project’s cost because it depends on what products are used in the building
(Northbridge Environmental Management Consultants, 2003).
Another greening cost is the cost of the labor needed to build these structures according
to LEED specifications. Much of the construction workforce is unaware of how to install
these new products and require extensive training to be able to do so. As the demand
for green buildings rises, so does the demand for people who know how to correctly
install these unique products. This means that those who know how to properly work
with green materials can charge more for their expertise, and those that do not know
how will take longer to complete the installation because of the time needed to teach
them. This will end up costing more because of the added training time.

9. LEED Construction: Is It Worth the Cost?
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Overall Cost of a LEED Building
According to RS Means, the entire cost for a Basic LEED Certified building is on
average 41 to 46 cents per square foot. However, additional levels of LEED certification
cost more to construct. To register a Silver LEED building will cost on average 41 to 55
cents per square foot. Gold LEED buildings will cost 61 to 81 cents per square foot if an
outside consultant is hired to conduct the inspection and certification (R.S Means,
2011). However, if the design team conducts the inspection and certification process
the cost is significantly reduced. A Basic LEED certified building could cost 35 cents
per square foot, while Silver and Gold Certified buildings would cost 36 to 44, and 58 to
59 cents per square foot respectively (R.S Means, 2011).
Current LEED Buildings
Incentives for LEED Buildings
It is important to be aware of the impact that buildings have on the environment.
Because of that, “more and more legislation is being passed that impacts not only the
zoning, but the environmental impact for new construction,”(Promoting New LEED
Construction, page 2). Many federal, state and local governments offer some type of
incentive programs for LEED buildings. Some of those incentives include tax breaks,
grants, and low-interest loans (Leadership in Energy and Environmental Design, 2011).
Currently, LEED certification is a voluntary program. However, many localities are
making it a requirement for public projects. It may be for that reason that the public
sector of construction has a higher percentage of projects that applied for LEED
certification than the private sector. It has been reported that 16.5% - 18.5% of the
public sector applied for LEED certification, while only 1% of the private sector applied
(Northbridge Environmental Management Consultants, 2003).
Ohio Union
One example of a public building that uses LEED construction is the new Ohio Union at
the Ohio State University. It is a LEED Silver certified building that uses many aspects
of LEED. It sets an example for future building by reducing waste, utilizing mass transit
and by reusable materials.
One of the main aspects of LEED construction is to create a pedestrian culture by
utilizing area transit and places for bicyclist to park. The Ohio Union has access to
COTA and to the OSU’s Campus Area Bus Service network. Also for those that
commute via bicycle, there is a place to store their bikes as well as a place to shower
(Ohio State University).

10. LEED Construction: Is It Worth the Cost?
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LEED buildings need to reduce waste and utilize materials that have minimal impact on
the environment; such as recycled portions of the previous Ohio Union. These
materials used at the current Ohio Union include limestone panels on the south
elevations and the marble and granite stones that make up the fireplaces in the Union
building. Also the building contains 50 percent certified wood, which is wood sourced
from managed tree farms, and not from mass deforestation logging camps. In total, the
new Ohio Union building is made up of 25 percent recycled materials (Ohio State
University).
Other ways in which the Ohio Union reduces its impact on the environment is that the
building envelope and HVAC system were designed to meet ASHRAE 55-2004 Thermal
Comfort Conditions for Human Occupancy. This standard sets the usage of heating
and cooling to defined ranges for the utilization of the least amount of energy while
maintaining levels of comfort as a standard building. The lighting systems were also
designed to use as little energy as possible while maintaining levels concurrent with a
standard building. The Ohio Union utilizes Compact Florescent Bulbs, and LED lighting
in the ballrooms and in display cases (Ohio State University).
The Ohio Union has one unique feature that reduces the impact on the environment and
that is its Pulper System. The system prevents food wastes from entering the waste
water treatment facilities by removing the soft portion foods that have been thrown
away. This reduces the need for large amounts of chemicals to be introduced at the
waste water treatment facilities. Also this system creates compost that introduces
nutrients into the soil (Ohio State University).
On the following page is a picture of the Ohio Union during construction (Ohio State
University). They are using locally sourced steel which is part of keeping a project green
by not having to transport materials into the project from far away.

11. LEED Construction: Is It Worth the Cost?
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Difficulties Assessing the True Cost of LEED Buildings
Some of the difficulty in assessing the true cost of building a LEED certified building is
that some of the requirements mandated by GBCI are also required by local building
codes. So those added costs would be the same whether or not the construction
company built a LEED certified building or not. In other words, some of the data
collected as part of the cost of LEED construction are actually the costs that would be
incurred even if it wasn’t a LEED project.

12. LEED Construction: Is It Worth the Cost?
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Benefits of LEED Construction
Environmental Benefits
There are several benefits to LEED construction that include both environmental and
economic advantages. Some of the environmental benefits include the “decrease in
carbon emission by using energy efficient appliances and bio-degradable or recyclable
materials” (Promoting New LEED Construction, page 2). They are being credited for
having better lighting, ventilation, temperature control and better indoor pollution
(Leadership in Energy and Environmental Design, 2011).
Economical Benefits
Buildings that are LEED certified are selling at higher prices and are producing higher
rental income. There are also higher occupancy rates associated with them. Employees
of LEED certified buildings seem to be producing at a higher rate and calling off of work
less. They cost less to operate because of the attention to energy efficiency. Overall
they seem to be a better investment than traditional construction buildings.(Leadership
in Energy and Environmental Design, 2011).
Reduction of Future Costs
Another factor to consider is that as time goes on, the cost of building a LEED certified
structure will decrease. People will become more educated on the processes needed to
apply for LEED certification effectively. They will already understand the research
involved and know where they will have to allocate their time in finding certain products
and where they do not need to spend their time. As energy efficient systems become
more popular, the cost to manufacture them will decrease (Northbridge Environmental
Management Consultants, 2003).
Conclusion
Overall, LEED construction will cost more initially. It will take time to learn the processes
and to implement them effectively. But as our research has shown, it is the way of the
future. Many federal, state and localities are making it mandatory and it is only a matter
of time before those regulations are required for the private sector too. As with any type
of new technology, there are bound to be some growing pains as people become
acquainted with integrating the new processes. But those construction companies that
are putting forth the effort now to understand and utilize LEED in their projects will be at
the forefront of the business when it does become mandatory. Therefore we believe that
it makes sense to invest in LEED certification now as a way to invest in one's future.

13. LEED Construction: Is It Worth the Cost?
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Works Cited
Northbridge Environmental Management Consultants . (2003). Analyzing the Cost of Obataining
LEED Certification. Westford.
City of Bloomington. (n.d.). Green Building Costs. Retrieved November 6, 2011, from The City
of Bloomingotn: http://bloomington.in.gov/green-building-costs
Government Service Agency. (2004). LEED® Cost Study. Washington DC: Government Service
Agency.
History of LEED. (n.d.). Retrieved from http://www.businessrecovery.ws/leedcertification/history-of-leed: http://www.businessrecovery.ws/leed-certification/history-of-leed
Leadership in energy and environmental design. (2011, November 3). Retrieved Novemember
6, 2011, from Wikipedia:
http://en.wikipedia.org/wiki/Leadership_in_Energy_and_Environmental_Design
Ohio State University. (n.d.). LEED Certification. Retrieved November 7, 2011, from The Ohio
Union: http://ohiounion.osu.edu/about_the_union/green/leed
Powers, E. (n.d.). I'm a designer: What do I tell my client when he or she asks me what LEED
will cost them for their project? Retrieved from Building Capacity:
http://buildingcapacity.typepad.com/blog/2011/02/im-a-designer-what-do-i-tell-my-client-whenhe-or-she-asks-me-what-leed-will-cost-them-for-their-project-elizabeth-powers.html
Promoting New LEED Construction. (n.d.). Retrieved October 16, 2011, from LEED New
Construction: www.newleedconstruction.com
R.S Means. (2011). Green Building: Project Planning and Cost. Hoboken: John Wiley & Sons.
Understanding the cost of leed project certification. (n.d.). Retrieved November 6, 2011, from
LEED User: http://www.leeduser.com/strategy/cost-leed-report-and-understanding-cost-leedproject-certification
US Green Building Council. (2009). Summary of Government LEED® Incentives – March, 2009.
Washington DC: US Green Building Council.
US Green Builind Coincil. (2011). LEED Professional Credentials . Retrieved November 6,
2011, from US Green Building Council:
http://www.usgbc.org/DisplayPage.aspx?CMSPageID=1815

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Vamosi, S. J. (2011, January 1). The True Cost of LEED-Certified Green Buildings. Retrieved
from HPAC Engineering: http://hpac.com/columns/engineering-green/true-cost-leed-buildings0111/