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© 2016 - Qatar Green Building Council, All rights reserved
13th November 2016
I S T H E R E A C O ST P R E M I U M F O R G R E E N B U I L D I N G S ?
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B.E., MBA, CEng. FIEI, CEnv. MIEMA, GSAS CGP, LEED AP(BD&C), PQPPrincipal Sustainability Consultant
[email protected] Moran Qatar LLC, PO 12929, Doha Qatar
D a v i d M c K e n n a
e n v i r o n m e n t s f o r l i f e
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• Analyse costs and benefits of Green Building (GB) rating systems in Qatar context
• Advise how to minimise the GB cost premium while maximising benefits
• Highlight how to avoid potential pitfalls and other factors leading to above normal costs
• Analyse case studies in sustainable development from Qatar
• Make recommendations for how GB rating schemes to guide future developments
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Qatar’s Green Building Policies (2006-2016)
• Qatar National Vision 2030, issued 2008: Qatar National Development Strategy Qatar National Masterplan
• QGBC formed by decree in 2009
• GORD established GSAS rating systems in 2009
• Building Permit System
• Qatar Construction Specifications
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Qatar’s Green Building Policies (2016-2026)
Sustainable Design & Construction
QCS
GSAS/ LEED
Building Permit System
• Coming soon - Qatar National Development Strategy, 2017-2021
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Green Buildings in Qatar to dateLEED® by USGBC
BD&C Building Design &
Construction
ID&CInterior Design &
Construction
EB:O&MExisting Buildings:
Operations & Maintenance
NDNeighborhood Development
Homes
New Construction Commercial Interiors Existing Buildings: Operations & Maintenance
Neighborhood Development Plan
Homes
Core & Shell Retail Schools Neighborhood Development Plan
Mid-Rise
Schools Hospitality RetailRetail HospitalityHospitality Data CentersData Centers Warehouses & Distribution
CentersWarehouses & Distribution CentersHealthcare
LEEDv4 Rating Schemes
• Leadership in Energy & Environmental Design (LEED)
• Adopted mainly in Qatar Foundation affiliated projects:
• By 2012 Qatar was fifth in terms of registered projects outside the US
• Slow uptake in LEEDv4 registrations
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Green Buildings in Qatar to dateGSAS® by GORD
Construction Management
Standard Building Typologies (BT)
Districts & Infrastructure (D&I)
Healthcare Railways Sports Construction Management (CM)
Commercial Neighbourhood Healthcare Railways Sports Construction Management
Single Residential SportsGroup Residential HealthcareEducation IndustrialMosques EntertainmentHotels EducationLight Industry TransportationWorkers Accommodation Parks
GSAS Rating Schemes
Design & Build
• Global Sustainability Assessment System
• Mandatory for public sector and certain mega development projects
• Endorsed by the Qatar Construction Specifications
• QCS2014 falls short of requiring actual GSAS certification
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International studies on Green Building Cost Premiums
World GBC found GB Cost Premiums tend to decrease over time
2013, World GBC Report, “The business case for Green Buildings”
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Factors leading to reductions in GB Cost Premiums
• Stricter codes
• Streamlined processes
• Better platforms for IDP
• Acceptance of modelling software
• Availability of experienced staff
• Better planning
• Proliferation of eco-labelled products.
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Analysis of GB Cost Premiums and Benefits: LEED & GSAS Case Studies
Included QARGSASgate Registration (2 yrs) a 2,000 Precertification Review Split Review : Design (5,000 plus QR5 per sq.m) a 105,000 Split Review : Construction PI CDA (15,000 per visit) a 60,000 Appeals
167,000
GSAS Commercial Building (20,000m2)
Totals
Assuming a 20,000m2 GFA Offi ce Building
US $ Included QARRegistration 1200 a 4404Precertification Review (LEED CS only, optional) 4250Split Review : Design ($0.045 per sq.ft) 9688 a 35553Split Review : Construction ($0.015 per sq.ft) 3229 a 11851Appeals 800CIRs 220
51,808
LEED Commercial Building (20,000m2)
Assuming: 1m2 = 10.76391 sq.ft, 1 US$ = 3.67 QARAssuming: a 20,000m2 GFA Offi ce Building
Totals
GB Certifying Authority Fees: • Access to online resources• Reviews by GB certifying authority• Fixed costs plus variable rates based on gross floor area
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Analysis of GB Cost Premiums and Benefit: Soft Costs
• Sustainability Consultant Fees
• GB Additional Studies & Simulations
• Independent Commissioning Authority:
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Analysis of GB Cost Premiums and Benefits: Hard Costs
• Additional Equipment & Systems
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Analysis of GB Cost Premiums and Benefits: Hard Costs
• Green materials and efforts by Contractor
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GB Cost Premiums for various levels of certification (case study example)
• Low-levels of certification may incur GB cost premiums from 0 to 2%
• Mid-levels of certification may incur GB cost premiums 0 to 4%
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GB Cost Premiums for Certification Levels (case study example)
• High-levels of certification may incur GB cost premiums >5%
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Factors leading to higher levels of GB Cost Premiums
• One size fits all approach
• Weakly enforced GB codes & permit systems
• Inexperienced & difficult team members
• Failure to schedule for sustainability review
• Lack of coordination
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Recommendations – Legislating for GBs and commonality of approach to Energy
• Close gaps in current legislation
• Enforce code compliance
• Commonality of approach on energy modelling
• Align with international standards to calibrate and refine results
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Recommendations - Lowering costs and building acceptance of GB rating systems
• Regional GB systems must keep fees in line with international rating systems
• Programme-wide approach to achieve economies of scale
• Avoid frequent changes to GB rating systems
• Involve industry for piloting new versions
• Fix sunset dates for future retirement of older versions.
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Recommendations - Differentiating and harnessing value from certification levels
• Strive to deliver a return on investment from GB Cost Premiums:
Higher rental/lease rates Lower operating costs Higher occupancy rates
• Remove any market barriers to ‘Brown Discounts’ for non-certified
• Promote the integrity, transparency and perception of GB rating systems
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Concluding notes – Qatar’s emerging case studies in urban planning
• Case A: LEED Certified: Qatar Foundation’s Education City Msheireb Properties’ Downtown Doha
• Case B: GSAS Certified: Lusail City New Port Project Manateq economic zones Aspire
• Case C: Non-certified: West Bay Pearl
2016
2022
2026
2030
2036
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Concluding notes – Steering Qatar towards sustainable development
• Will areas where sustainability has been adopted from master plan level to building level will command green premiums?
• Will other areas suffer from lower occupancy and a downward spiral of decline in value and rents?
• What will be the average ROI achieved for GB Cost Premiums?
2016
2022
2026
2030
2036
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Concluding notes: Steering Qatar towards sustainable development
• “Qatar deserves the best” motto must also apply to future waves of building construction
• QNV2030 issued in 2008 but further tiers of National Masterplanning documents must be issued
• Authorities must close gaps in codes & regulations to steer the market toward sustainable development
2016
2022
2026
2030
2036
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Concluding notes: Steering Qatar towards sustainable development
• Numerous examples exist of cities that transformed in successful destinations through deliberate urban planning:
London Frankfurt Chicago Singapore
• For similar success Qatar must be planning led
• Strengthen urban planning authorities and harness the efforts by developers and other interested parties
2016
2022
2026
2030
2036
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Paradigm shift towards a virtuous circle of sustainable development
OWNERS/ END USERS
DESIGNER & CONTRACTO
R
DEVELOPERS
INVESTORS
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Key messages from GB Cost Premium Analysis (case studies)
• Initial GB cost premium from the outset are offset by long term benefits for owners and occupants
• Unsustainable construction fast-tracks asset-value depreciation and obsolescence of buildings
• GBs need to focus on user satisfaction, comfort and wellbeing, as well as energy and water efficiency
• GBs need to go beyond environmental & economic considerations and embrace social sustainability
Source: McGraw Hill Green, Smart Market Report 2013, www.construction.com
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Rent
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Hilson Moran: Our Offices
Our Middle East office locations from which we operate across the GCC are:Q a t a r a n d U A E
Our UK office locations, from which we operate across Europe are:L o n d o n , M a n c h e s t e r , C a m b r i d g e a n d F a r n b o r o u g h
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e n v i r o n m e n t s f o r l i f e
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