1. www.sustainabledesignforum.com
Collaboration
and Marketing
Best Practices
in the Building
Industry
Environmental Sustainability
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2. Environmental Sustainability
TABLE OF CONTENTS
Introduction
Chapter 1 - Marketing Beyond LEED™:
New Frontiers in Sustainability
Chapter 2 - Commonality of Quality:
Value Engineering, Environmental Sustainability,
and High Performance Buildings
Chapter 3 - Integrating Low Impact Sustainable
Development Strategies in the Design Process:
a Civil Engineer’s Perspective
Chapter 4 - Green Building Training Opportunities for
the A/E/C Professional
Chapter 5 - The Greening of Student
Food Service Facilities
Chapter 6 - Three Marketing Strategies
for Sustainable Design
About the Authors
Resources
Recommended Reading
www.sustainabledesignforum.com page
Environmental Sustainability: Collaboration and
Marketing Best Practices in the Building Industry
Published by the Sustainable Design Forum,
a division of
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Environmental Sustainability
CHAPTER 2
Commonality of Quality:
Value Engineering, Environmental Sustainability,
and High Performance Buildings
By Gregory S. Knoop, AIA, LEED AP
T
hroughout the past few decades, there has been a highly unproductive struggle between forces that have
mistakenly set themselves at odds in the world of design and construction of high-performance buildings.
Value engineering (VE) and environmental design often have crossed swords in design—especially envi-
ronmentally sustainable design. Proponents of each concentration were ready to cut and slash at the others’ efforts.
It is now time to put down the swords and recognize common goals.
Value engineering needs to focus more on sustainability. Sustainability needs to rise above the practice of checklists
and, through the auditing of value engineering, find its much broader potentials.
What is the common thread? Quality. Quality is at the core of a high-performance building. Quality is the core
goal in the search for value. Quality is the goal we seek in creating a better, more livable planet.
What exactly is value engineering? According to SAVE International (formerly the Society of American Value En-
gineers), the basic goal of VE is to get better value for a project by decreasing costs, increasing profitability, improv-
ing quality, saving time, and using resources more effectively. For architects and owners who assumed that VE was
a cheapening of the project, these goals should be a great relief. If you are being sold project cheapening as a value
engineering process, you’ve been mislead. VE is the search for quality, not cheapening.
The process commonly used for VE has many variations and can range in magnitude and scope, but usually in-
volves the following processes:
• Information gathering: reading drawings, specifications, estimates, and reports
• Analysis: understanding the design intent and critical goals, including functional analysis
• Creative brainstorming: coming up with ideas
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4. www.sustainabledesignforum.com page
Environmental Sustainability
• Evaluation: studying and validat-
ing the ideas
• Recommendation: selecting the
ideas that will benefit the owner
and improve the project’s value
• Implementation: acting on the
selected ideas
Looking at the goals
of VE, the 21st
cen-
tury architect and
engineer, who will
be required to be a
responsible steward
of the environment,
will find that there is
much more here than
originally expected:
• Decreasing costs:
This usually is the number one
goal. But there are first-time costs
and lifecycle costs. In evaluat-
ing cost, one has to recognize
that there may be currencies
other than money. Soon, energy
resources, material resources,
oxygen, water, carbon…etc. also
will be measured as real com-
modities beyond the boundaries
of monetary currency. These are
the currency of the living planet.
Value based thinking can bring
these into the dialogue of design
and sustainability.
• Increasing profits: This is a fa-
vorite goal for business clients. If
we invest in a building, we want
to profit from it. We want our
workers to be efficient, faster, at-
tendant, accurate, and
contributing to the
bottom line. We want
buildings that create
an environment to
facilitate these goals.
An intelligent value
engineering process
can reach deep into
the common quality
goals.
• Improving quality: This is the
core issue. A value engineer
should take a Hippocratic Oath
of a kind to endeavor to do good
for the project, not harm. “…I
will preserve the purity of my life
and my art…” This too must be
the charge. Quality can exist in
so many quarters: the integrity
of materials, the purity of air, the
quality of light, the functional-
ity of good organization, and the
inevitable quality of design.
• Saving time: Time is money,
especially in construction. How-
ever, time burns away energy and
resources. Timeliness and time-
lessness can be the true test for
the quality of a building and its
design. Longevity can be a valu-
able commodity.
• Using resources more effectively:
Buildings are big consumers
of material and energy. Smart
ideas can lead to responsible and
responsive design and construc-
tion. Here could be the vanguard
of the dialogue on embodied
energy, embodied carbon emis-
sions, embodied
recyclability,
healthiness, and
overall integrity.
• Solving prob-
lems: This is
what the whole
VE process
entails. This is
not the demon
called value en-
gineering, about
which we have
heard. In fact, it
sounds very green. VE and third
party peer review provide a way
to search for higher quality design
through a collegial process.
Benson Kwong, PE, a certified value
specialist and LEED accredited
professional with Project Manage-
ment Services Incorporated says,
“As sustainability becomes a com-
mon goal in construction… VE can
be a powerful tool to bring about
sustainability. Indeed, it is the users
who should be defining the ‘value’
in VE. The value engineer simply
applies the value methodology to
optimize the value as defined by
the users (owners, occupants, pub-
lic…etc), or by considering alternate
approaches to realize the users’ value
by means that are
simpler, cheaper, or
more elegant. Value
can be defined as
a combination of
quality, aesthetics,
image, sustain-
ability, etc… ‘Bad’
value engineering
happens when the
value engineering
team tries to con-
vince the users that
what they value is worthless.”
There is one more point to consider
for forthcoming projects:
• Protection of the Environment
and conservation of resources:
Quality is the
goal we seek
in creating a
better, more
livable planet.
If you are being
sold project
cheapening as a
value engineering
process, you’ve
been mislead.
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Environmental Sustainability
Environmental protection is no
longer a matter of choice as re-
sources become scarcer; as energy
becomes more expensive; as great-
er connection is made between
human health and environmental
factors; and as it becomes clearer
to our society the importance of
biodiversity and preservation of
the worlds ecosystems.
Our clients and our society (through
codes, guidelines, or other require-
ments) need to be the advocates and
drivers of sustainable goals so that
the VE process can support rather
than undermine the common goals
that Kwong mentions.
The capitalists of the world would
like to see green support green. Does
it all make sense financially? Paul
Hawken in his book, The Ecology
of Commerce, points toward new
commercial frontiers around ecologi-
cal concerns: “Business will need to
integrate economic, biologic, and
human systems to create a sustain-
able method of commerce.”
William McDonough and Michael
Braungart place it in terms of safety
in The Hanover Principals, exhorting
us to, “Create safe objects of long-
term value. Do not burden future
generations with requirements for
maintenance or vigilant administra-
tions of potential dangers due to the
careless creation of products, pro-
cesses or standards.”
Here McDonough and Braungart
demonstrate a clear link between the
concept of value and environmental
responsibility.
Finally, a 2001 Fed-
eral Facilities Council
(FFC) study titled
Sustainable Federal
Facilities: A Guide
to Integrating Value
Engineering, Life-Cycle
Costing and Sustain-
able Development,
states “…The precepts
for sustainability are
that all resources are
limited and it is less
expensive short and
long term to build
in harmony with the
environment.”
The FFC study points to key land-
marks to integrate value engineering
into a green federal building project
at the conceptual planning phase
and at the design and construction
phase. Further, the study points to
the importance of proper focus on
budgeting buildings that are intend-
ed to be designed as “green” or meet
a USGBC LEED certification.
We see the beginnings of move-
ment toward sustainable design
practices in China. Although in the
past the environmental record of
the Peoples Republic of China had
not been stellar, we are beginning
to see this resource-
hungry new economy
of theirs experiment
with new sustainable
practices without fear
of loosing ground in
the world economy.
Much of this effort
has been through
the Non-Govern-
ment Organizations
(NGOs) and Gov-
ernment Organized
NGOs (GONGOs).
Bob Willard in his
book, The Sustain-
ability Advantage,
points to the responsibilities of the
governing bodies to set trends that
establish the standard of care in the
market place:
“For an enlightened government
regulatory approach to work, the
regulators must set measurable
performance standards, have access
to information to verify compliance,
and be able to enforce the tough rules
with all relevant competitors…”
We also know that the government
can be a powerful customer in the
marketplace, responsible for bil-
lions of dollars in construction and
related purchasing every year. Value
engineering can be the verification
engine for the meeting of environ-
mental performance standards in
projects rather than the method to
cut cost by de-greening projects.
Willard further states, “…The op-
portunity–oriented and value based
business strategy requires an assess-
ment of all business trade-offs when
making sustainable development
investment decisions…” Value
engineering can be used as a tool for
making these assessments.
Willard gives several examples of
companies that took the leap of
faith to go green and are looking
at higher performance and profit-
ability as a result. Companies like
Interface Carpet, Collins Aikman
Floorcoverings, the Fluke Corpora-
tion and others found that a broader
view and an environmentally sus-
tainable view also became a finan-
cially sustainable and advantageous
view. Such companies also are better
“As sustain-
ability be-
comes a com-
mon goal in
construction…
VE can be a
powerful tool
to bring about
sustainability.”
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6. www.sustainabledesignforum.com page 10
Environmental Sustainability
poised from a marketing perspec-
tive to capture the environmentally
aware consumer.
In all cases, the design, construction,
and project development community
must no longer think of the respon-
sible choices of sustainable design
practices as choice, but
rather as necessity. The
industry must look at
the Green Movement
not as a burden, but
an opportunity. Build-
ings require enormous
amounts of care
and effort to design,
build, and maintain
to be evaluated only
for their short-term
value and profitability.
Rather, with the right
investment of quality,
they provide tremen-
dous potential for
long-term value and
financial rewards. Value engineering
can provide the analysis to explore
the broad view of the process that
will support sustainable alternatives
as being the right choice for both
quality and financial wellbeing.
Where is the proving ground? Life-
cycle cost benefit aims to determine
the cost benefits of an improvement
in performance over functional life
measured against initial premium
cost. This process is supported by
the 2001 FFC study and becomes
the place where the project team can
look for the quality and long-term
value of sustainable measures.
The federal govern-
ment has sponsored
projects like the
General Services
Administration
Adaptable Workplace
Laboratory and the
Workplace 2020 as
testing grounds for
the changing work
environments, look-
ing at both environ-
mental concepts and
productivity benefits.
Carnegie Mellon’s
Center for Building
Performance and
Diagnostics and other similar aca-
demic programs also are beginning
to provide the long overdue research
on positive and negative benefits to
specific green building strategies.
The findings can help unravel mys-
teries and lend to the value engineer-
ing explorations for future projects.
Proper VE will help contribute to
the design and construction of truly
high performance buildings and
provide measurable support.
The National Institute of Standards
and Technology (NIST) defines
lifecycle cost as “the total discounted
dollar cost of owning, operating,
maintaining, and disposing of a
building or a building system” dur-
ing a measurable period. Many envi-
ronmental design items—although
adding some level cost premium to a
project—will show a lifecycle mon-
etary savings (although the payout
period may bring this into question).
If we begin to measure other com-
modities, we may see additional pay-
offs as being more immediate. Can
we measure human performance
as a commodity? Can we measure
biodiversity as a commodity? Can
we measure air quality as a com-
modity? Can we measure healthy
environments as a commodity? If we
make the necessary investments in
constructing and deconstructing our
buildings in a quality green man-
ner, we may see the payoffs in many
shades of green.
We see examples of this kind in the
construction practices promoted
by organizations such as Kaiser
Permanente, a health maintenance
organization that seeks to promote
healthier lives for its members. Kai-
ser sees the value of promoting green
building practices and of following
the Green Guide for Health Care as
paying off in energy cost, material
consumption, healthier patient envi-
ronments, lower legal and financial
risk, and higher staff performance.
The organization is using its pur-
chasing power to promote sustain-
able design and construction that
truly influences the marketplace.
The federal government has similarly
adopted sustainability as part of the
standard concern for constructing
its facilities. Most architecture and
engineering contracts advertised for
the General Services Administration
(GSA) in recent years have required
team members to be LEED ac-
credited personnel. VE reviews of
projects for the US Department of
State, the Army Corps of Engineers,
and other agencies include reviews of
LEED checklists as a routine part of
the process.
Going a step further, we should ask
the US Green Building Council
to look at VE studies with LEED
accredited professionals and a green
mission as being a creative design
component worthy of receiving a
Value engi-
neering can be
the verifica-
tion engine for
the meeting of
environmental
performance
standards in
projects.
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7. www.sustainabledesignforum.com page 11
Environmental Sustainability
point of credit for “Innovation in
Design” much like the similar focus
on building commissioning (pre-req-
uisite EA#1 and EA point 3).
We can see that there are many links
between creating high performance
and environmentally sustainable de-
sign and value engineering and life-
cycle cost analysis. We might see a
future where property carries greater
value when it has received certifica-
tion by USGBC, GGHC, or similar
organizations and could therefore be
traded at a higher price. Similarly,
buildings that were never green may
be seen either as having lower value
or even as being potential risks.
Essentially, the high-performance
green building is of better quality
and will be considered a better buy.
The common thread between sus-
tainability and value engineering is
the search for quality. We are only
just now seeing the marketplace be-
gin to recognize that environmental
sustainability can no longer be left
out of the formula. Rather it should
become a requirement. Value engi-
neers, builders, designers, developers,
and owners need to recognize that
there is a new opportunity to be on
the vanguard of the eco-commerce
movement. In the construction of
green buildings, VE can be a tool to
promote quality—not the cheapen-
ing of projects.
Value Engineers need no longer hide
in the shadows. Now, more than
ever, we need them to step forward
and take part in upholding the prin-
cipals of quality and value in con-
struction by promoting and lending
further expertise to environmental
sustainable design and construction.
Now is the time to join efforts to
promote the commonality of quality.
References:
SAVE International (formerly the Society of
American Value Engineers - SAVE)
The Ecology of Commerce, Paul Hawken,
Collins Business, 2005, New York
The Hanover Principals – Design for
Sustainability, William McDonough
Michael Braungart and Teresa Heinz, William
McDonough + Partners, New York 2003
Sustainable Federal Facilities – A Guide to
Integrating Value Engineering, Life Cycle
Costing and Sustainable Development, Federal
Facilities Council, National Academy Press,
Washington DC, 2001
Building a Green Civil Society in China, Jennifer
L. Turner and Lu Zhi, State of the World 2006 –
Special focus India and China, The Worldwatch
Institute, Washington DC, 2006
The Sustainability Advantage – Seven Business
Case Benefits of a Triple Bottom Line, Bob
Willard, New Society Publishers, Canada, 2002
The National Institute of Standards and
Technology (NIST)
LEED-NC 2.2 Reference Guide, USGBC,
Washington DC, 2005
inustainablelanninandesin
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