Saving Money - And Generating New Business

key learning:  LEED certification doesn’t have to be expensive


O, R&L had some trouble achieving LEED (Leadership in Energy Efficiency and Design) certification for a construction project, and asked me to take on a research project with two aims:

  1. •To recommend time- and money-saving improvements to the company’s LEED-certified building construction process;

  2. •To recommend a marketing strategy for O, R&L’s move toward green construction




Process Improvements

Improvements centered on achieving LEED Accreditation for Project Managers, who are the lynchpin of a project and can train other people involved in the project to the extent necessary.  I also recommended that the company engage a LEED-Accredited architect for its next project, and employ a consultant for the specific purpose of developing knowledge within the company to ensure successful future LEED projects.


Marketing

A competitive assessment of the green construction market revealed some ways in which O, R&L can take advantage of its position to move into this market.  O, R&L’s primary problem in this area is an issue of misperception: potential clients believe that LEED projects are expensive, and deliver minimal benefits.  O, R&L’s marketing materials should focus on the savings that LEED-certified buildings deliver over time, in most cases far offsetting the small initial premium associated with some of the more expensive LEED-compatible materials.   There is no reason why a LEED-certified building should cost more than a non-LEED certified building.

Creative contractual approaches would also help the company to win new business.  OR&L completed their current project on a guaranteed maximum price basis.  This meant that the client would not pay for costs above an agreed-upon price.  Once O, R&L is comfortable with an architect and the LEED certification process, O, R&L could propose a fee structure that provides for bonuses for an on-time completion, or for completion under a certain cost.  This model would encourage O, R&L employees to seek out low-cost options throughout the building process, and reap benefits at the end.

O, R&L construction