REPORT

Minimize Risk - Maximize Performance
January 2011

Industry Survey Reports 

 *A/E Law Firm Survey*

 Detailed survey of 20 A/E Law Firms across the United States providing regional and national perspectives on legal developments, claims and root causes driven by economic conditions with loss prevention recommendations and other insights from these legal experts.
  

A/E Law Firm Survey Report Link

*A/E Survey Report*
Insightful survey report of A/E firms and how economic conditions are impacting business opportunities and affecting business decisions today.  

A/E Firms Survey Report Link

*A/E Insurance Carriers
Survey Report"
Survey of 17 insurance carriers specializing in A/E Professional Liability (PL) insurance identifies current economic risk factors
, services offerings, claim trends and recommendations for reducing liability exposures.   

PL Insurance Carrier Report Link

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Strictest Green Building Code in the U.S. 

 

Introduction

Effective January 1, 2011, possibly the most stringent environmental building code in the United States is now being enforced applying to new commercial buildings, hospitals, schools, shopping malls and homes. The new code for the state of California is called CalGreen requiring reduced indoor water use, diverting 50 percent of construction waste from landfills to recycling, use of low-pollutant materials, and installation of separate water meters for different uses in nonresidential buildings. The new code requires energy system inspections by local officials to ensure that heaters, air conditioners and other mechanical equipment in nonresidential buildings are working efficiently.

Marketing for CalGreen states “once projects have passed the state building inspection, property owners can label their facilities CalGreen compliant without the additional involvement and cost of third-party certification programs”. Local and state building departments verify the mandatory CalGreen code requirements with the infrastructure the state has established to enforce its health, safety, fire, energy, and structural building codes.

California indicates the ultimate goal of CalGreen is provide a uniform and consistent code that can be used in coordination with all building codes. The effort focused on helping local building officials, governments, and the building industry by providing uniform and consistent requirements. However, as you would guess, the new code were opposed by several private organizations that offer their own green construction rating systems, including the U.S. Green Building Council (USGBC) which said “it could result in confusion for builders, design professionals, local governments and the public” reported several media sources.

The CalGreen code has five categories:

1. Planning and design
2. Energy efficiency
3. Water efficiency and conservation
4. Material conservation and resource efficiency
5. Environmental quality

The code is broken down into four basic parts:

1. Residential Mandatory Measures
2. Residential Voluntary Measures
3. Nonresidential Mandatory Measures
4. Nonresidential Voluntary Measures

The new code establishes baseline mandatory standards with also Tier One and Tier Two voluntary categories for those who wish to position their buildings as even “greener” than the mandatory baseline.

Key Mandatory Requirements:

  • Reduce water consumption by 20 percent and 50 percent in landscape irrigation.
  • Divert 50 percent of construction waste from landfills.
  • Install low VOC materials.
  • Separate indoor and outdoor water meters for nonresidential buildings.
  • Moisture-sensing irrigation systems for large landscape projects.
  • Mandatory inspections of energy systems, such as furnaces and air conditioners for nonresidential buildings over 10,000 square feet.
  • Operation and maintenance manual at the time of final inspection

 

CalGreen currently is focused on new buildings, so requirements do not apply to existing buildings at this time. The next step will be to include existing buildings in future updates of the green code. Exemption to the CalGreen code includes Federal buildings, buildings built on Indian land, or reservations and others.


Green Construction Enhancements

In response to number of stakeholders requests for a statewide, consistent method of enhancing green construction practices beyond CalGreen mandatory minimum limits, additional Tiers have been established. To meet Tier requirements, designers, builders and property owners must increase the number of green building measures and further reduce percentages of water and energy use and waste to landfills in order to meet the thresholds of each Tier. The optional provisions identified as “CalGreen Tier 1” and “CalGreen Tier 2,” have a number of more stringent sustainable building practices and features. Both Tiers include a detailed list of green building features within the five categories; 1) energy efficiency, 2) water efficiency, 3) waste reduction, 4) material conservation and 5) indoor air quality. The voluntary standards provide a likely preview of future mandatory standards for the CalGreen code.

The following are examples of CalGreen elective measures for residential project Tiers after meeting the mandatory requirements.

 

Tier 1

  • Comply with 20% permeable paving requirements
  • Exceed California Code by 15%
  • Comply with reduced flow rate of sink faucets for Tier 1
  • Water use reduction for landscape irrigation for Tier 1
  • Cement reduction of 20%
  • Recycled content of 10%
  • Reduction of construction waste of 65%
  • Resilient flooring systems of 80%
  • Thermal insulation requirements for Tier 1
  • Compliance with 1-4 electives for each division


Tier 2

  • Comply with 30% permeable paving requirements
  • Exceed California Code by 30%
  • Comply with reduced flow rate of sink faucets for Tier 1
  • Comply with dishwasher requirements for Tier 2
  • Water use reduction for landscape irrigation for Tier 2
  • Cement reduction of 25%
  • Recycled content of 15%
  • Reduction of construction waste of 75%
  • Resilient flooring systems of 90%
  • Thermal insulation requirements for Tier 1 and Tier 2
  • Compliance with 1-6 electives for each division



CalGreen Certified


Buildings which meet the applicable provisions can be labeled as “CalGreen Certified,” “CalGreen Tier 1 Certified,” or “CalGreen Tier 2 Certified,” as appropriate. The idea is to provide a certifiable green standard in the marketplace that does not require third-party verification and the attendant costs.

Conclusion and Considerations

To avoid trying to hit a moving target, as state sustainable building codes change, such as CalGreen now being a building code requirement, it is recommended that code standards at the time of signing the contract be clearly identified. Ensure stated services will be in compliance with green building code requirements at that time. Be aware there are at least a dozen local jurisdictions are considering adopting more than the minimum mandatory measures of CalGreen.

The first step is identifying if the building will be classified as residential or non-residential project.  The provisions are different for each classification and it is important to understand which entities govern the requirements. The Department of Housing and Community Development (HCD) is responsible for residential projects and the Building Standards Commission (BSC) is responsible for non-residential projects.

Expect each jurisdiction to create various policies and procedures for the adopted level of the CalGreen building code. It is necessary for the design team to have early and close communication with local building and planning departments to assure that documentation is acceptable, and meets submittal requirements.


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Copyright apply. This newsletter is for information purposes only and should not be construed nor relied upon as regulatory or legal advice. Readers should consult with appropriate counsel regarding their specific situations and circumstances. 

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