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Mitigating Green Building Risks: Best Practices

Mitigating Green Building Risks: Best Practices. Nicole DeNamur J.D. and LEED® Green Associate™. Goals. A. Understand “green” risks and their origination. B. Discuss available standard contracts. C. Share list of principles to guide green projects.

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Mitigating Green Building Risks: Best Practices

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  1. Mitigating Green Building Risks:Best Practices Nicole DeNamur J.D. and LEED® Green Associate™

  2. Goals A. Understand “green” risks and their origination. B. Discuss available standard contracts. C. Share list of principles to guide green projects.

  3. “Green” risks: potential risk mitigation tools • Contracts – define roles and responsibilities • Clear, well-defined contracts. • Standard contracts are available. • Insurance – transfer risk to third party • Insuring against unknowns.

  4. Standard Contracts: overview • Standard contracts may be used as a reference of starting point. • Remember: by definition, standard contracts are not project-specific. • All contracts should be carefully reviewed and tailored for each project. • No contract is “one size fits all.”

  5. Commitments: warranties Contract Documents Sustainability Plan Sustainable Objective Sustainability Measures

  6. Commitments: warranties Southern Builders, Inc. v. Shaw Development, LLC • Only reference to LEED® in project manual: Project is designed to comply with a Silver Certification Level according to the U.S. Green Building Council’s Leadership in Energy and Environmental Design (LEED) Rating System, as specified in Division I Section “LEED Requirements.” • Owner alleged contractor breached contract by failing to: Construct an environmentally sound “Green Building” in conformance with the LEED Rating System.

  7. Rules: owner / local requirements • Seattle Municipal Code 23.40.060: A. Purpose. The purpose of this section is to establish a Living Building Pilot Program. The goal of the Pilot Program is to encourage the development of buildings that meet the Living Building Challenge by allowing departures from code requirements that might otherwise discourage or prevent buildings from meeting this standard.

  8. Rules: owner / local requirements Government Regulators Third-Party Certification Entity

  9. Limit exposure: damages clauses • Carefully review and revise standard damages clauses. • Consequential damages • Liquidated damages

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