Using Life Cycle Costing and Sensitivity Analysis to “Sell” Green Building Features

Abstract

Abstract The title, and basic theme, of this article probably will raise the ire of many design professionals. We all know and preach that sustainable design requires an integrated design approach, and that the design works together as a whole. A sustainably-designed building cannot be cut back in piecemeal fashion and expected to provide the benefits for which it is touted. However, as design professionals we know and experience regularly the wrenching effects of last-minute Value Engineering (VE) efforts undertaken to bring a project back to within an Owner's stated budget. During the typical VE exercises, the Owner looks at (supposed discrete) elements of the design and appraises each for its “cost effectiveness.” The Owner scans down the line items on the Bid Tabulation (or latest design cost estimate) and asks “Where can I save money?” His perspective is that of someone ordering off an `a la carte menu. The bottom line is simply the sum of all the elements. Ensuing discussions of the “integrated desi...