Sustainable Risk Management
Wednesday, May 19, 2010 at 12:01PM 
This week, Advisory Board member Chris Hill addresses a sustainability issue near and dear to his heart. For more information about Chris, please visit the B2S team page.
I am at heart a risk manager. Both here at Build2Sustain and at my Musings blog, I have discussed the issues to do with LEED de-certification because of energy reporting (or lack thereof) by the owner of the building. Remember the italicized portion of this last sentence, because the de-certification discussion has taken a new turn. Now, not only can the Owner of a building tank its LEED Certification through its own failure to comply with USGBC rules, the certification of a building can be challenged by third parties. Hidden in the USGBC LEED Policy Manual is language granting USGBC the right to retroactively review a project's LEED certification level on either it's own initiative or based upon the complaint of a third party.
My focus as a B2S advisory board member, as always, is on the "on the ground" risk management issues for designers, contractors and subcontractors on projects seeking LEED certification or other contractually or governmentally imposed energy efficiency goals. The real issue here, from my perspective as a construction lawyer, is the further implication of third party action in the potential liability of the construction professional who designs or constructs the building.
Third party action is a big issue with risk management under LEED or any other “green” building or energy efficiency system. The specter of actions beyond the control of those who will design and build our sustainable infrastructure abound. Just a few are outlined below:
- How will insurance companies and bonding companies deal with the totally uncontrollable possibility of a certification challenge?
- How will the ghost of liabilities future (like that mangled Dickens reference?) dampen the enthusiasm for sustainable construction overall?
- What sorts of issues will be created by new technologies and regulatory systems?
The Eeyore in me fears that our much needed shift to sustainable, energy efficient building stock will be hindered by the worries of contractors. My hope (and, yes, I do have an optimistic side!) is that by asking these questions now, we can all work to deal with them and, with some luck and good planning, create a strong sustainable infrastructure that will be around for years to come.
Thankfully, good folks like those here at Build2Sustain are asking these questions and that’s a start.
LEED, de-certification, risk management in Commentary
Reader Comments (73)
Chris,
Great post! I think that all too often the risks are overlooked as people get high on the idea of saving money and the environment. I am always amazed by your ability to take what can be abstract issues and put them into an easy to understand context.
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