They say it’s always greener on the other side, but sustainable and LEED-certified projects can leave owners and contractors seeing red if they do not manage site safety and control risk.
The first step to achieving optimum return on a project investment is to understand how the risks of green building differ from those of traditional building.
Site SelectionTo obtain maximum LEED credits, project owners often seek brownfield sites or high-density sites close to mass transportation and with accommodations for electric vehicles and bicycles.
Brownfields often are contaminated by low concentrations of hazardous compounds such as lead, mercury, hydrocarbons and asbestos. Additionally, these sites can expose pollution created by working near subways, railroads and waterways.
Because site selection is a key component in LEED certification, owners and developers must evaluate the numerous insurance products that address environmental liabilities arising from projects constructed on remediated properties. Various forms of coverage can be pursued to insure against existing and unknown pollution conditions, as well as pollution conditions arising out of the construction work being performed.
Loss Control in Construction PhaseThe stringent LEED credit system offers designers and contractors guidance on producing a sustainable facility, but with those credits come safety concerns that must be addressed to prevent costly insurance claims. Regarding the green design elements planned for a project, a safety consultant can provide adequate training and equipment, and a broker can ensure policies contain the necessary coverage.
Be sure to discuss the following three loss control considerations:
- Material reuse. LEED credits are offered for the reuse of building materials, which often need to be abated of lead paint or stripped of hazardous compounds, such as mercury. Safety consultants can advise site managers and contractors on best practices, as well as American Council of Governmental Industrial Hygienists and Occupational Safety and Health Administration standards for protecting employees who are reusing steel beams, exposed wooden beams or electrical devices.
- Vegetative roofing. By utilizing maximum green space and capturing and reusing rainwater, vegetative roofs are an ideal way to maximize the LEED credit for reducing the heat island effect. However, vegetative roofs also present a unique condition for worker fall protection during construction. The lack of exposed concrete and steel on a rooftop creates new challenges in providing construction workers with fall-arrest anchor points, as well as falling object protection for workers below.
- Indoor air quality control. During the final phases of construction and just prior to occupancy, the U.S. Green Building Council and Sheet Metal and Air Conditioning Contractors’ National Association place minimum expectations for continuous air exchanges. This creates new demands on ventilation during final construction activities—such as painting, drywall and plastering, floor and carpet installation, and waterproofing—and may present a new series of occupational health concerns.
Insurance ProgramBrokers who understand the risks associated with LEED construction are better equipped to structure the insurance coverages for these projects. For example, builders risk policies do not automatically cover the loss of earnings resulting from an inability to achieve the desired energy credits or sell off surplus energy or the additional soft costs associated with rebuilding to LEED standards. Keeping brokers informed will result in a more comprehensive insurance program to address these LEED-specific exposures.