Press & News

Leah Rochwarg published in Real Estate Finance
10/11/2006

Leah Rochwarg’s article, “Sustainable Building: Managing the Environmental and Project Risks,” in the October issue of Real Estate Finance, explains standards and issues associated with “Green” buildings. She defines “Green Design,” as design and construction practices developed by the US Green Building Council (USGBC) that significantly reduce or eliminate the negative impact of buildings on the environment and occupants in five broad areas: Sustainable site planning; Safeguarding water and water efficiency; Energy efficiency and renewable energy; Conservation of materials and resources; and Indoor environmental quality.

Leah speaks of the USGBC’s LEED (Leadership in Energy and Environmental Design) Green Building Rating System® method for measuring sustainability of building projects in the Unites States, and says the number of LEED registered projects has increased exponentially over the past several years in both the public and private sectors. There are risks associated with Green Building contracts, however, because Green Building requires the use of innovative systems and equipment with no significant track record for production or installation, which can lead to potential problems arising on the project. Due to the growing popularity of building green and the increased adoption of the USGBC’s LEED rating system, contractors are under pressure to become better acquainted with these concepts. Compliance with the LEED standards will be mandatory when they are made part of the construction contract. To avoid possible failure to comply with a LEED system, an effective risk management plan for a Green Building project should begin with a thorough review and understanding of the contract documents.