Gulf Coast Green speaker, Kathleen English, presented "Petrobras Americas: An ROI Case Study" on 4/16/2010 in Houston, Texas

1. Return on Investment
for a
LEED Commercial ÇàxÜ|ÉÜá Project
j
english + associates architects, inc. yÉÜ petrobras americas headquarters

2. English + Associates Architects, Inc.
g ,
Principal Architect Kathleen English
Interior Designer Rose Lopez
Project Designer Maritza Vega
Project Designer
P j tD i Chris H l
Ch i Hale
Dominion Interests, Inc.
MEP Engineer Michael Green
Redding Lidden Burr
Commissioning Agent
g g Roscoe Rogers
g
HOAR Construction
Project Manager David Stallman
DIRTT Modular Walls
DIRTT Champion Benjamin Urban
team players +

3. This program is registered with the AIA/CES for continuing
professional education. As such, it does not include content that
may be deemed or construed to be an approval or endorsement by
y pp y
the AIA of any material of construction or any method or
manner of handling, using, distributing, or dealing in any
material or product. Questions related to specific materials,
methods, and services will be addressed at the conclusion of this
,
presentation.
L E A R N I N G O B J E C T I V E S:
1. Understand a Return On Investment evaluation process as applied to
various construction methods and design solutions
solutions.
2. Comprehend the sustainable advantages to designing with reconfigurable
and flexible construction materials in commercial interior spaces.

4. modular walls access floors lighting
components of the project +

5. The churn rate within the office is relatively high
high.
Petrobras is a rapidly evolving company.
p y g p y
HSE policies are a core part of the company’s values.
programming considerations +

6. need for flexibility
no need to be punished with costs for the way they practice business
already green based on company philosophy
designing portable elements into the spaces
critical issues +

7. modular walls
highly efficient lighting
modular furniture
access flooring
early design solutions +

8. Can we
afford it?

9. e+a f
framework
k
vendors and contractors
d d t t
were involved in providing
preliminary cost estimates
estimates.
decision process +

10. (
(modular
walls)
)
cost analysis
+

11. _Compare the total cost of "real estate" for a specified number of people
(625) over a designated timeframe (11 years).
_80% of the program space is typical office. We created 1 full floor of
typical office for comparison.
i l ffi f i
one full floor typical as modular (148 people) 4.25 floors
one full floor typical as conventional (125 people) 5 full floors
If modular construction is utilized for the full 5 floors, it will house 748 people, an
additional 123 p pl without an i
dditi l people ith t increase i lease cost.
in l t
premise +

12. 1
Identified additional construction cost
for modular furniture in the initial build-out: $11.33/S.F.
2
Assume 15% of space is reconfigured annually @ $30/NRSF
$30/NRSF.
Assume $30/NRSF for reconfigured area for conventional construction
Assume $15/NRSF for reconfigured area for modular construction
3
A cost escalation of 2% annually was added to future construction cost per square foot.
4
A depreciation savings was calculated for use of furniture vs. hard walls
7 years versus 31.5 years
5
Cost comparison assumes all new furniture for both scenarios.
cost criteria +

13. 31 private offices
15 shared offices
64 cubicles
125 spaces
conventional scheme +

14. 31 private offices
15 shared offices
87 cubicles
148 spaces
modular scheme +

15. SI# Description Qty. Unit Unit Cost Projected Cost 5 Floor Cost
05120 Structural Steel 1 l.s. 2,593.25 $2,593.25 $12,966.25
(unistrut for TV's, projectors and screens)
06100
06200
06201
conventional construction
Rough Carpentry
(blocking in wall for millwork, etc.)
Finish Carpentry/Millwork/upper and low. Cabinets
Wood Wall Finish
1,600
65
850
b.f.
l.f.
s.f.
2.51
363.06
77.80
$4,016.00
$23,598.90
$66,130.00
$20,080.00
$117,994.50
$330,650.00
06202 Wood base 800 s.f. 3.41 $2,728.00 $13,640.00
07210 Sound Insulation 2,000 s.f. 0.36 $720.00 $3,600.00
07211 RA Boots 50 ea. 77.80 $3,890.00 $19,450.00
08000 Doors & Frames 58 ea. 561.57 $32,571.06 $162,855.30
08001 Double Herculite Entry Doors 2 pr. 5,186.50 $10,373.00 $51,865.00
08400 Glass Partitions 4,050 s.f. 23.86 $96,633.00 $483,165.00
08700 Hardware 58 ea.
ea 512.16
512 16 $29,705.28
$29 705 28 $148,526.40
$148 526 40
09200 Gyp. Bd. Partitions to grid 9,000 s.f. 3.69 $33,210.00 $166,050.00
09201 Gyp. Bd. Partitions to deck 2,795 s.f. 3.40 $9,503.00 $47,515.00
09202 Gyp. Bd. Partitions at columns 2,376 s.f. 2.55 $6,058.80 $30,294.00
09201 Gyp. Bd. Finish at perimeter spandrels 1,563 s.f. 0.49 $765.87 $3,829.35
09500 Ceiling/Tile (install only) 20,855 s.f. 0.93 $19,395.15 $96,975.75
09600 Linoleum 460 s.f. 2.07 $952.20 $4,761.00
09650 Carpet/Carpet Tiles 20,000 s.f. 3.33 $66,600.00 $333,000.00
09651
6 Rubber B
R bb Base ( l
(columns, perimeter, and offices)
i d ffi ) 3,250 l.f.
lf 1.56
6 $5,070.00 $25,350.00
09652 Stone Flooring Projected Cost
500 s.f. 5 Floor Cost
20.75 $10,375.00 $51,875.00
09700 fabric wrapped homasote w/ aluminum trim 3,300 s.f. 11.04 $36,432.00 $182,160.00
09701 Dryerase marker surface/walltalkers w/ alum. trim 3,800 s.f. 13.25 $50,350.00 $251,750.00
09702 W.C. @ Core ($8 materials) Subtotal $756,041.01
2,268 s.f. $3,780,205.05
2.07 $4,694.76 $23,473.80
09900 Paint 14,065 s.f. 0.57 $8,017.05 $40,085.25
10400 Signage 125 ea. 75.00 $9,375.00 $46,875.00
11310 G.C. OHP
Appliances (dishwashers icemakers, microwaves, refrigerators)
(dishwashers, icemakers microwaves
$113,406.15
6 ea.
ea
$567,030.76
800.00
800 00 $4,800.00
$4 800 00 $24,000.00
$24 000 00
12400 Window Coverings (by landlord) 0 0.00 $0.00 $0.00
15000
15400
Mechanical System (interior zones)
Fire Protection Sprinklers
Subtotal $869,447.16
20,855
20,855
s.f.
s.f.
$4,347,235.81
2.59
1.24
$54,014.45
$25,860.20
$270,072.25
$129,301.00
15500 Plumbing 4 1,815.28 $7,261.12 $36,305.60
16000
16001
Electrical Lighting (install only-stocked)
Specialty Lighting
Contingency $43,472.36 321
50
ea.
ea.
$217,361.79
67.42
250.00
$21,641.82
$12,500.00
$108,209.10
$62,500.00
16001 Electrical Plug Load 200 ea. 158.34 $31,668.00 $158,340.00
16002 Electrical floor cores 20 ea. 77.80 $1,556.00
$1 556.00 $7,780.00
$7 780.00
16004 Fire alarm system TOTAL $912,919.52
$ 20,855 s.f. $4,564,597.60
$ 6
1.04 6 $21,689.20 $108,446.00
17000 Commissioning 20,855 s.f. 1.98 $41,292.90 $206,464.50
Cost/S.F. $38.87 $38.87
Subtotal $756,041.01 $3,780,205.05
15% G.C. OHP $113,406.15 $567,030.76
Subtotal $869,447.16 $4,347,235.81
5% Contingency $43,472.36 $217,361.79
TOTAL $912,919.52 $4,564,597.60
COST/SF (based on 23,488 NRSF/Floor) $38.87 $38.87
itemized cost comparison +

16. 5
SI# Description Qty. Unit Unit Cost Projected Cost 5 Floor Cost
05120 Structural Steel 1 l.s. 2,593.25 $2,593.25 $12,966.25
06100 Rough Carpentry 250 b.f. 2.51 $627.50 $3,137.50
modular construction
06200
06201
06202
07210
Finish Carpentry/Millwork/upper and lower cabinets
Wood Wall Finish (Elevator Lobby only)
Wood base (base in modular walls)
Sound I l i ( f
S d Insulation (conferences)
)
87
360
0
2,000
l.f.
s.f.
s.f.
s.f.
f
363.06
77.80
0.00
0.366
$31,586.22
$28,008.00
$0.00
$720.00
$157,931.10
$140,040.00
$0.00
$3,600.00
6
07211 RA Boots 50 ea. 77.80 $3,890.00 $19,450.00
08000 Doors & Frames 9 ea. 561.57 $5,054.13 $25,270.65
08001 Double Herculite Entry Doors 2 pr. 5,186.50 $10,373.00 $51,865.00
08400 Glass Partitions 450 s.f. 23.86 $10,737.00 $53,685.00
08700 Hardware 9 ea. 512.16 $4,609.44 $23,047.20
09200 Gyp. Bd. Partitions to grid 486 s.f. 3.69 $1,793.34 $8,966.70
09200 Gyp. Bd. Partitions to deck 2,795 s.f. 3.40 $9,503.00 $47,515.00
09202 Gyp. Bd. Partitions at columns
G Bd P i i l 2,376 6 s.f.
f 2.55 $6,058.80
6 88 $30,294.00
09201 Gyp. Bd. Finish at perimeter spandrels 1,563 s.f. 0.49 $765.87 $3,829.35
09500 Ceiling/Tile (install only) 20,855 s.f. 0.93 $19,395.15 $96,975.75
09600 Linoleum 460 s.f. 2.07 $952.20 $4,761.00
09650 Carpet/Carpet Tiles 20,000 s.f. 3.19 $63,800.00 $319,000.00
09651 Rubber Base (bldg. perimeter and columns) 1,150 l.f. 1.56 $1,794.00 $8,970.00
09652 Stone Flooring (Elevator Lobby Only) 500 s.f. 20.75 $10,375.00 $51,875.00
09700 fabric wrapped homasote w/ Alum. Trim 300 s.f. 11.04 $3,312.00 $16,560.00
09701 Dry-erase marker surface w/ Al
D k f / Alum. T i
Trim 300 s.f.
f 13.25 $3,975.00 $19,875.00
8
09702 W.C. @ Core ($8 material) Projected Cost
2,268 s.f. 5 Floor Cost
2.08 $4,717.44 $23,587.20
09900 Paint 3,600 s.f. 0.85 $3,060.00 $15,300.00
10000 Access Floor System 18,513 s.f. 6.16 $114,040.08 $570,200.40
10001 Subtotal
Modular Wall System (doors, hardware, tackwall, writeboard, glass, wood and base) $976, 428.86
1,295 l.f. $4,882,144.30
308.89 $400,012.55 $2,000,062.75
10400 Signage 133 ea. 75.00 $9,975.00 $49,875.00
11310 Appliances (dishwashers, icemakers, microwaves, refrigerators) 6 ea. 800.00 $4,800.00 $24,000.00
12400 Window Coverings (by landlord) G.C. OHP $146,464.33
0 $732,321.65
0.00 $0.00 $0.00
15000 Mechanical System (interior zones) 20,855 s.f. 2.59 $54,014.45 $270,072.25
15400 Fire Protection Sprinklers 20,855 s.f. 1.24 $25,860.20 $129,301.00
15500 Plumbing Subtotal $1,122,893.19
4 ea. $5,614,465.95
1,815.28 $7,261.12 $36,305.60
16000 Electrical Lighting (install only - stocked) 321 ea. 67.42 $21,641.82 $108,209.10
16001 Specialty Lighting 50 ea. 250.00 $12,500.00 $62,500.00
16001 Electrical Plug Load Contingency $56,144.66
40 ea. $280,723.30
158.38 $6,335.20 $31,676.00
16002 Electrical floor cores 20 ea. 77.80 $1,556.00 $7,780.00
16004 Fire alarm system 20,855 s.f. 1.04 $21,689.20 $108,446.00
16002
17000 Commissioning
TOTAL
modular electrical (cost included in the access floor) $1,179,037.85
$ 185
20,855
8 ea.
s.f.
$5,895,189.24
$ 8 8
150.00
1.98
$27,750.00
$41,292.90
$138,750.00
$206,464.50
Cost/S.F. $50.20 $50.20
Subtotal $976,428.86 $4,882,144.30
15% G.C. OHP $146,464.33 $732,321.65
Subtotal $1,122,893.19 $5,614,465.95
5% Contingency $56,144.66 $280,723.30
TOTAL $1,179,037.85 $5,895,189.24
COST/SF (based on 23,488 NRSF/Floor) $50.20 $50.20
itemized cost comparison +

17. conventional construction
*117, 440 NRSF allows 625 people 188 sf/person
build out: $454 198
ut $454,198 Year 1
Y Year 2
Y Year 11
Y
furniture: $5,753,750
NPV: $21,107,718 June 2008 June 2009 June 2018
rent $1,455,766 $2,495,600 $2,495,600
reconfiguration
fi ti $0
$ $528,480
$ 8 8 $631,583
$6 8
tax/depreciation -$283,132 -$481,828 -$4,725
cost of
construction: total $1,172,634 $2,542,252 $3,122,458
$ ,2 7,94
$6,207,948 cumulative $7,380,581 $9,922,834 $36,406,183
modular construction
*98,125 NRSF allows 625 people 157 sf/person
build out: $1,491,250 Year 1 Year 2 Year 11
furniture: $4,583,750
NPV: $17,218,656 June 2008 June 2009 June 2018
rent $1,216,341 $2,085,156 $2,085,156
reconfiguration $0 $264,240 $315,791
tax/depreciation -$293,025 -$502,153 $0
cost of
construction: total $923,316 $1,847,243 $2,400,947
$6,075,000
6 cumulative $6,998,316 $8,845,558 $28,985,693
cost comparison +

18. $7.4 million over an 11 year p
74 y period
$40,000,000
Conventional
$35,000,000
$ Construction
C i
$30,000,000
Modular
Construction
$25,000,000
$20,000,000
$15,000,000
$10,000,000
$5,000,000
$0
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
construction cost comparison +

19. freestanding furniture
g
Approximately 30% less components =
20-30% less initial cost
modular furniture
design considerations +

20. design considerations +

21. (lighting)
(li h i )
cost analysis
y
other issues evaluated +

22. lighting energy comparison
$800,000
$700,000
$600,000
Option A
$500,000 Base Building
Option B
$400,000
Current Standard
$300,000
Option C
$200,000
Energy Eff
E Efficient U
Upgrade
d
Option D
$100,000 State of the Art
$0
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
ROI Lighting +

23. intangible benefits
High performance space with lower cost of operation
flexibility
Longer design duration faster construction
duration,
framework for evaluating future projects
aesthetics
conclusion +