Profitably Greening The Built-Environment

The key to reducing C02 emissions is a business model that makes sense today - not down the road. This presentation shows how high performing green buildings can be acheived for the same cost or less than conventionally construction buildings. »
Rex Miller

Reframing the challenge
Why?
if only...
leaks happen at the intersection of contracts
Trust-based turnkey teams
early collaboration
built-in sustainability
transformational leadership
shared risk/reward
more than visualization
behavior change
early adopters
those fed up
collaboration tool
Q&A?
Blurring the lines
www.mindshiftwiki.com

www.rexmiller.net

mrexmiller@twitter.com
Eroding margins
Viewed as commodity
Finding and keeping talent
Rising costs
Conflict & litigation
Third parties
Low bid procurment
Risk & liability
Little differentiation
owners must drive change
the secret to everything
instead of squeezing margins can we all agree
there is more to gain by attacking waste?
40% Growth
2050
2050
80% Reduction
2007
1st LEED Platinum Spec Built
Conventional Wisdom
$3/sqft <
$300,000 Less
45% < Op Costs
21% > Rent
100% Pre-Leased
AARDEX
2012 -   7% below 1990
2024 - 30% below 1990
2050 - 80% below 1990
60% in 2010
70% in 2015
80% in 2020
90% in 2025
Carbon-neutral in 2030 
H.R. 2454: American Clean Energy and Security Act of 2009
in 2010, 30% below the baseline energy code 
in 2014-2015, 50% below the baseline energy code, and
every three years after, out to 2029-2030, an additional 5% reduction
Lessons:
Merit badges create interest
Legislation provides minimal stds
Minimal stds are not enough
Complexity creates inertia
what is the real progress in the last 10 years?
10 year+ payback - new

15-20 year+ payback - retro
4.7 million buildings
78 billion square feet
6.7 million buildings
109 billion square feet
3.3 million new
55 billion sqft new
26,682 registered
5989 certified
90+% = new construction
1 out of 200,000 registered
1 out of 1 million certified
2010 - 390PPM
29 million metric tons
Globally drop 10+%
US must reduce
27%
1.75 million tons
1990 = 350PPM
2000 -       40
2001 -      211
2002 -      332
2004 -      812
2005 -   1,424
2006 -   1,695
2007 -   5,582
2008 -   7,577
2009 - 11,573
At this rate 2010 > 17,600
However at the current rate we'll be under 2,600!
6% cars
Double gas mileage @ 10% reduction
48% buildings
Half are offices
50% reduction in energy = 35% of our goal
90%
1 story
< 25,000 sqft
86% privately owned
46% owner occupied
making green retrofit good business
100,000+ LEED APs
20,000 Organizations
a brown system can not produce a green solution
The system causes good people to do bad things
Narrow self-interest
distrust
inefficiency
waste
conflict
dysfunction
9 keys
trust-based turnkey teams
Early Collaboration
Built-in Sustainability
Transformational Leadership
Big BIM
Integrating Project Delivery
Shared Risk/Reward Incentives
Leverage Offsite Fabrication
Quality work environment = a High performing Building

big BIM
integrating project delivery
offsite fabrication
NY Times
Green Retrofit?
2-5 year payback
stimulates the economy (1.3 million jobs)
Reduce the need for new construction
600,000 - 1,000,000 metric ton reduction
Good design can cut an additional 3M buildings
3 million buildings another 2 million tons
Below 1980 numbers
Cut C02 by 50%

achievable in 5-10 years

self-selected teams
based on qualifications
involved at project conception
tied to outcome based compensation
obstacles
Federal Govt - FARs
State & local govt procurement
Low bid practices
Insurance
Risk
Natural adversaries
REITs
3rd Party Representatives

Haworth
Metropolis Magazine
$3M-$6M premium?
low bid procurment
linear
sequential
silo'd
hierarchical
adversarial
?
Loss of old crutches
No one to blame
Taking on risk
Increased accountability
must have an ROI - not just a good conscience
cut 50% of C02 in 5-10 years

add 1.3 million jobs
green roI
what can you do?

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