New Data on the Cost of Building Green

A report by Lisa Fay Matthiessen and Peter Morris of Davis Langdon Adamson,* ?EUR??,,????'??Costing Green: A Comprehensive Cost Database and Budgeting Methodology,?EUR??,,????'?? asserts that if there is any premium associated with building green, it is far less significant than a range of other factors that affect building costs. Matthiessen and Morris did a macro-level analysis of the cost of green projects. They compared the cost per square foot of 45 LEED (Leadership in Energy and Environmental Design) seeking projects with 93 that were not pursuing LEED certification. They found ?EUR??,,????'??no statistically significant difference between the LEED population and the non-LEED population.?EUR??,,????'?? This finding held up within each building type as well as across the whole range of projects.

The report found that cost was largely indifferent to the level of LEED certification being pursued, whether certified, silver, or gold-platinum. The authors also briefly explored other ways of determining if it costs more to build green. Of the LEED-seeking projects they analyzed, over half were built within a budget set without regard to any green goals. Of those that did receive added funds towards green features, those funds were usually for specific, high-cost items such as photovoltaic systems. Matthiessen and Morris conclude that other factors affect cost so much that any possible green premium is, in effect, lost in the ?EUR??,,????'??noise?EUR??,,????'?? in relation to average cost per square foot.

Davis Langdon Adamson (www.davislangdon-usa.com) is a member of Davis Langdon Seah International, specializes in cost estimating and cost management in construction, with offices in Los Angeles, San Francisco, Sacramento, Seattle, and New York.