ROI: Reducing up-front costs

The integrated design process is a collaborative effort among stakeholders throughout all stages of design and construction that aims to reduce inefficiencies and enhance value to produce the highest quality project.*1, 2

Key Integrated Design Process talking points:

• Projects that use IDP have fewer inefficiencies and produce “better, faster, less costly, and less adversarial construction projects”.*3
• Construction costs and strategies that are considered from the beginning result in fewer requests for information (RFIs) and change orders. Reducing the amount of RFIs and change orders can decrease overall project time and save money by minimizing modifications.*4

References: 

1. Koch, C. & Buhl, H. '"Integrated Design Process" a Concept for Green Energy Engineering." Engineering. 2013. 
2. Hanna, A. Benchmark Performance Metrics for Integrated Project Delivery. Journal of Construction Engineering and Management. 2016. 
3. AIA's "Integrated Project Delivery: A Guide". 2007. 
4. Malin, N., Yost, P., Pearson, C. Improving Green Building Construction in North America: Guide to Integrated Design and Delivery. 2015.

More and more project stakeholders are recognizing that high-performance design features do not always add costs and expensive high-performance elements can be offset by lowering the cost of other elements.*1

Key efficiency versus cost talking points:

• As buildings become more energy efficient by incorporating passive and climate-responsive design strategies, they demand less energy for heating, cooling, and ventilation. As a result, HVAC systems can be smaller.*2
• Decoupling heating and cooling from ventilation can reduce duct size and reduce initial first costs.*3
• A cost analysis of a hypothetical six-story, 31,000-square-foot office building in Philadelphia concluded that reductions in initial cost due to duct size, chiller size, air handling unit size, plenum depth, and integrated thermal and fire suppression piping lead to a cost savings of $2/sf.*3
• An effective daylighting design strategy can reduce reliance on electric lighting, provide views to the outdoors, reduce glare, reduce heat gains in the hot season, and accept thermal energy in the cold season.*4

References: 

1. Dean, E. Zero Net Energy Case Study Buildings - Volume 2. 2018. 
2. Hydes, K.R., Creech, L. "Reducing mechanical equipment cost: the economics of green design." Building Research & Information. 2010. 
3. Dedicated Outdoor Air Systems 4. Lechner, N. Heating, Cooling, Lighting: Sustainable Design Methods for Architects. 2014.

Federal, state, and local laws and regulations are major top-down drivers of sustainable building practices.1 Sustainability incentives are also effective in promoting green building development.*2

Key policy, grant, and incentives talking points:

• Financial incentives include grants, rebates, tax incentives, utility incentives, and discounted development application fees. Nonfinancial incentives include, but are not limited to, Floor Area Ratio (FAR) bonuses, technical assistance, and expedited permitting.*3
• Green building programs and certifications also successfully promote sustainable practices and are significant enticements for high performance design.*3
• Green building certification labels, such as LEED or Energy Star, can increase the asset value of a project, further incentivizing the implementation of these practices.*4
• Business leaders see that climate change is no longer a distant threat. A 2021 Deloitte Global survey found that over 80% of executives are concerned about climate change, nearly 30% of executives say their organizations already feel the operational impacts of climate-related disasters, and more than a quarter are facing a scarcity of resources due to climate change.*5
• Profitability and revenue growth are among the significant positive outcomes organizations are experiencing due to their sustainability efforts. Almost half of companies have seen improved financial metrics thanks to these initiatives—a key consideration as leaders justify and measure the return on investment from climate efforts.*5

References: 

1. Dean, E. Zero Net Energy Case Study Buildings - Volume 2. 2018. 
2. Berawi, M.A., Basten, V., Latief, Y., & Crévits, I. Role of Green Building Developer and Owner in Sustainability Construction: Investigating the Relationships Between Green Building Key Success Factors and Incentives. 2020. 
3. Olubunmi, O.A., Xia, P.B., & Skitmore, M. "Green Building Incentives: A Review. Renewable and Sustainable Energy Reviews." Renewable and Sustainable Energy Reviews. 2014. 
4. Eichholtz, P., Kok, N., & Quigley, J.M. "Doing Well by Doing Good? Green Office Buildings." American Economic Review. 2010. 
5. Bechert, Kyle. 2021 Climate check: Business' views on environmental sustainability. Deloitte. 2021.