Green Construction
As energy costs continue to rise and building standards become more environmentally rigorous, it’s not uncommon for construction projects to specify sustainable building practices, or “green” building principles. But capitalizing on the trend to build green can quickly turn your profit margin from black to red if you don’t have a clear understanding of your additional contract exposures.
What is Green Construction?
According to the Environmental Protection Agency, green building is the practice of creating structures and using processes that are environmentally responsible and resource-efficient throughout a building’s life cycle; from siting to design, construction, operation, maintenance, renovation and deconstruction.
These structures meet specific objectives that protect the occupant’s health, are more energy-efficient, use resources more effectively and provide business tax incentives.
How is Certification Achieved?
To uphold green building standards, the U.S. Green Building Council created the LEED (Leadership in Energy and Environmental Design) program, which outlines standards for building using natural resources, recycled or healthy materials.
The LEED system evaluates projects based on design, construction and operation, serving as the voluntary national standard for sustainable buildings. It uses a checklist and point system of recommended practices, achieving various point levels can certify the building as having achieved certified, silver, gold or platinum status. These practices involve such issues as efficient water and energy use, the reuse of waste materials, and the use of renewable and regionally produced products.
The LEED certification standards are rigorous, and a simple misstep, such as not following a project’s material recycling or erosion plan, can put a project’s certification in jeopardy.
How Can I Manage My Contract Exposures?
From managing delays to guaranteeing certification, the following are some common contract considerations and ways to minimize liability risks:
- Limit Contract Warranties
- Reduce Delay Risks
- Define Consequential Damages
- Retain Right to Cure
Count on Our Construction Expertise
The process of taking a green building project from conception to use is complex. You can count on our firm’s well-informed risk managers to help you pinpoint exposures unique to your construction business and the potential ways to manage or transfer those risks.
Contact INSURICA today to learn more about our insurance and construction loss control solutions.
This article is not intended to be exhaustive nor should any discussion or opinions be construed as legal advice. Readers should contact legal counsel or an insurance professional for appropriate advice. © 2008-2011 Zywave, Inc. All rights reserved.
About the Author
Share This Story
Related Blogs
Preparing for Freezes: Protecting Your School During Cold Weather
Preventing Frozen Pipes in Schools is essential to maintaining a safe and operational learning environment during cold weather. Frozen and burst pipes can cause costly damage, disrupt daily activities, and compromise the safety of students and staff. By taking proactive steps, schools can effectively mitigate these risks and ensure their facilities are prepared for freezing temperatures.
Cyber Case Study: Hack at Steel Mill Causes Physical Damage
In late 2014, the German Federal Office for Information Security (BSI) released a report detailing a disruptive cyber attack at an unnamed steel mill facility. The attack—which was deployed through a combination of social engineering tactics and malware— compromised several of the steel mill’s industrial control components. From there, equipment breakdowns and production outages ensued, resulting in extensive property destruction.
Winter Driving Tips for Truckers
One of the joys of the trucking business is the ability to travel across the country and experience the beauty of different roads from coast to coast. However, this also means you must prepare for various types of driving conditions.