The Undervalued Role of a Contractor in LEED Construction

by Jonathan McGaha | August 2, 2015 12:00 am

Razor-thin margins, impossible schedules, cut-throat competition and unreasonable contract terms are all concerns often discussed in our industry. Still, teams often overlook one participant in the delivery of a project as an ally and resource for solutions: the contractor. When faced with all of these external stressors, an owner, developer or designer should look to capitalize on the combined strength of the team. As the U.S. construction market continues to struggle out of the recent slump, our industry is looking to more sustainable designs, and an increasing number of municipalities are mandating LEED certification. In this ever-changing market, it’s troubling to see how so many seem to forget how crucial a contractor can be to the success of the delivery team and a project.

At some point in time, our industry evolved from having a mentality that the master builder was a person responsible for assembling a team that would carry a project from concept to completion, to someone who is just another part of a delivery method, where the lowest price takes the job. Master builders once worked with owners to understand their needs and translated those needs into a design, while seeking consultation and guidance from their assembled teams. They took an active role in selecting each material and took the time to understand the interconnectivity of each system. Their work was not complete until they oversaw and built each structure.

Those master builders knew every inch of the buildings they were responsible for delivering. In essence, these master builders utilized an integrated delivery approach for their projects. Integrated delivery goes beyond integrated design in that it includes everyone who has some portion of responsibility for the completed project. The list of participants can be short-owner, architect, engineer, builder-or it could be more inclusive, with the community code officials, facility managers and end-users added. The size of the delivery team matters little compared to the importance of the inclusion of the entire team.

In the past, I have written about the importance of the integrated process and drew a distinction between integrated design and integrated delivery. Integrated design typically concludes with the production of a set of tender documents with which an owner initiates a bidding process for contractors and suppliers. This application may provide a good design but positions the contractor to compete on the lowest common denominator, which is cost. This process fails to recognize or reward contractors for their problem-solving abilities or their experience. The typical bidding process looks for a strong back, as long as the price is cheap.

Contractors are solutions providers. When combining the LEED process into the mix, a contractor’s work can have a direct effect on the success of a project. For example, when a team is using the LEED Building Design and Construction for New Construction, there are 54 core points, two prerequisites of a possible 100 points and eight prerequisites documented during or at the end of construction. These point totals do not reflect the innovation in design or regional priority sections of the rating system.

When the contractor has so much influence in the outcome of a LEED project, it doesn’t make sense to use cost as the most influential element in deciding which contractor to choose. A different type of selection process is needed that allows the contractor to become an active team member before the design is complete. Early inclusion of contractors allows teams to benefit from their knowledge instead of just their physical strength.

Recently, I was asked by a contractor to participate in a project pursuit. The owner had made a decision to invite the contractor to be a member of the team early in the design process. The price component was based on a previously established budget. The project goals included achieving Platinum level certification, establishing a budget and sticking with a firm delivery schedule. At the pre-bid meeting, the owner gave an impressive speech about the importance of teamwork. The architect echoed those comments and stated that he enjoyed working with contractors and looked for ways to capitalize on good ideas no matter where they came from.

In the end, four qualified contractors returned proposals. Two of the four indicated that their experience with LEED was a differentiator to their competition. The numbers were submitted, and interviews were conducted. At the end of the process, the difference between the high- and low-fee structure was negligible. The contractor awarded the project did not win based on knowledge and experience with LEED, but instead, by demonstrating he could do what he was told and act as a contractor and nothing more. Just because you have a willing owner and an architect that say they like using an integrated approach, it does not always mean they will follow that method. Like the majority of projects, this one will be built. But, after completion, one question will remain unanswered: How much better would the finished project have been if the entire team were selected based on its knowledge?

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Thomas Taylor, a 30-year veteran of the construction industry and noted expert on sustainability, is a principal and co-founder of St. Louis-based Vertegy LLC. To learn more about Vertegy or Taylor, visit www.vertegyconsultants.com[1].

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