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    Green TechnologyDavid E. Schumacher, Esquire

    500 Virginia Street East, Suite 600 P.O. Box

    3710 Charleston, West Virginia 25337(304) 345-4222

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    Evolution of Green Building Practices or From

    the Flintstones to Jefferson to the Jetsons

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    EPA Definition of Green Building

    Thepractice of creating structures and using

    practices that are environmentally responsible

    and resource efficient throughout a buildings

    life cycle from siting to design, construction,

    operation, maintenance, renovation and

    deconstruction.

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    Without incentives the greening of Americas

    construction practices was carried out due to

    necessity

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    Flintstones

    Natural local productsrock quarry and low

    energyhome and auto

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    Jefferson

    Site location near river and transportation, self sustaining

    with garden, fish pond, and ice from river with ice house

    below structure. Tall windows and doors used for ventilation

    with building products from site, wood, stone, limestone, etc.

    Ventilation blinds on porticos and/or porches to keep out sun

    and allow breeze.

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    Why Green Buildings?

    In the U.S. alone buildings use nearly 40% of the

    energy, approaching 75% of the electricity, produce

    nearly 40% of the CO2 omissions, and suggest that

    green construction should be public policy andeventually required. On worldwide basis statistics

    indicate that construction and building maintenance

    consumed 40% of the worlds energy, 65% of all

    electricity and 40% of raw materials.

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    Is it here to stay?

    So long as money is available or when money runs out and

    fines are imposed, green will stay.

    The American Recovery and Reinvestment Act of 2009

    allocated billions of dollars to green building projects

    including 4.5 billion dollars to convert federal buildings into

    high performance green buildings.

    The intention and hope is that by investing now in green

    construction and environmentally friendly laws we will be

    able to reduce long term costs including those to theenvironment and natural resources.

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    Historically statistics suggest that the value of green buildings and

    products and services in 2005 was more than 7 billion dollars. It was

    estimated that the annual value of green building products and services

    would increase to 12 billion dollars by 2007 with 2 billion square feet of

    commercial building space having been registered or certified under the

    rating system known as LEED, aka Leadership and Energy and

    Environmental Design. The most recent statistics for 2010 suggest that

    the value of green building products and services has reached more than

    60 billion dollars. Obviously, the market for green construction has been

    created by both the ideal to better the environment and future of natural

    resources, the atmosphere, energy resources, etc., as well as the result offinancial incentives.

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    Tax Credits

    Dave Lunsford will provide examples

    Las Vegas and D.C.

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    Green or Sustainable Construction

    Green or Sustainable Construction has

    momentum not only because of user demand

    for environmentally conscious structures and

    thus provide opportunity for builders,

    architects, etc., but also because simplified

    or organized certificationprograms.

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    U.S. Green Building Council, among others,

    helped to launch on a large scale the desire to

    pursue sustainable and high performance

    buildings.

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    Leadership and Energy and Environmental

    Design (LEED) Program

    Classifications of basic certification, silver,

    gold, platinum.

    USGBC was created more than 20 years ago

    and there have been significant developments

    within the LEED rating system since then,

    including 4 primary changes, with the 4th

    change presently on hold withimplementation delayed from the winter of

    2012/2013 and set for the fall of 2013.

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    Focus of LEEDs

    The LEED rating system for green construction developed

    ratings based upon the nature of the construction projects

    including:

    New Construction

    Existing buildings

    Commercial interiors

    Core and shell

    Schools

    Retail

    Health Care

    Homes

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    Rating system, other than that for homes,

    under the LEED criteria is broken down into

    categories:

    Sustainable sites

    Water efficiency

    Energy and atmosphere

    Materials and resources

    Indoor environmental quality

    Innovation and Design process

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    Each category can provide points and credits toward

    certification at different levels. Examples include, for new

    construction you may obtain credits for ground fieldredevelopment or alternative transportation (sustainable

    site)

    Water efficient landscaping or innovative waste water

    technology

    Water efficiency

    On Site Renewable energy sources or green power (energy

    and atmosphere)

    Reuse of existing building materials or recycled content(materials and resources)

    Enhanced Ventilation (indoor environmental quality)

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    Additionally, there are certain pre-requisites

    that must be met for the project to be LEED

    certified.

    For example, new construction rating system

    requires the project to have construction

    activity pollution prevention, onsite collection

    of recyclables and environmental tobaccosmoke control among significant threshold

    requirements.

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    The credits and points are added up so that a

    score card is completed and the number of

    total credits then push the building toward

    LEED certification with the lowest level beingLEED certified.

    Next level is LEED silver, followed by LEED

    Gold. The highest form of certification is LEEDplatinum.

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    While not universally accepted, the use of LEED certification is

    on such a wide spread basis worldwide that the vast majority

    of governments have adopted it in one form or another or

    portions of it. The system provides flexibility and is

    customizable, so as to allow buildings to be certified atdifferent levels and potentially to qualify for credits from local

    governments or federal government depending upon the

    project, based on points obtained from prior categories

    described, and the building may not reach all categories orobtain points or credits from all categories.

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    LEED basic categories

    1. Site Consideration

    2. Water conservation

    3. Energy Savings 4. Material Properties

    5. Indoor Environment

    6. Innovative Practices (included as apotential credit or point maker)

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    Again, all 5 primary categories contain certain

    prerequisites that must be met before points

    can be earned.

    For example, certain minimum standards of

    energy efficiency must be met before any

    energy saving credits may be earned.

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    Secondly, because some environmental issues

    have been deemed more important or having

    greater potential impact than others, the LEED

    point system is weighted in favor of those withgreater impact.

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    It Aint Easy Bein Green

    http://www.youtube.com/watch?v=z4ZxxHbJGbYhttp://www.youtube.com/watch?v=z4ZxxHbJGbY
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    Impact of Green Building Initiatives on Construction Defects or

    It Isnt Easy Being Green

    Increased liability exposure from green construction arises

    from at least 2 issues that exist because of the cuttingedge

    status of green construction and products used in green

    construction.

    There really is, as of this time, no universally accepted

    standard for what qualifies as a green or sustainable building.

    Secondly, there is an increased risk of heightened

    expectations on the part of the end user or, in particular, the

    owner of the building with regard to the results.

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    Green = Defect Free?

    Sustainable = Less Maintenance?

    Sustainable = Longer Life than ConventionalConstruction?

    Expectations regardingenergy savings-

    subjective comfort-enhanced indoor air

    quality.

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    Aggressive marketing (negligent

    misrepresentation/intentional

    misrepresentation/deceit/ fraud in

    inducement/unfair competition claims) ofgreen buildings due to demand, incentives,

    and now potentially penalties.

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    In essence, each separate characteristic of

    greenconstruction can lead to claims which

    might not have been available under standard

    construction (sustainable building sites/waterefficiency/energy conversation/atmospheric

    impact/effective use of materials and

    resources/indoor environmentalquality/creative design?)

    Stricter regulations or changing from

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    Stricter regulations or changing from

    the carrot to the stick.

    LEED program as voluntary compliance program or guidelines

    for creating a better world.

    Stimulate better world by government related initiative such

    as tax credits or other non mandatory means of encouraging

    green construction.

    Local (state/county/city) statutes, regulations and ordinances

    incorporating portions of green construction including LEED

    program either in part or wholly by simple reference to the

    change voluntary to regulatory

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    Prima Facie Negligence?

    Interpreting LEED when incorporated wholly

    within local statute or regulation.

    LEED vs. Green Building Initiative vs.

    International Green Construction Code, etc.

    evolving regulations and evolving LEED?

    moving targets.

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    Increased Exposure to Damages Due to Failure

    to obtain desired tax credit or for LEED

    classification with penalties available under

    local statutes?

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    Impact of LEED

    USA TODAY video

    Green Building Lead Certification

    http://www.usatoday.com/story/news/nation/2012/10/24/green-building-leed-certification/1650517/http://www.usatoday.com/story/news/nation/2012/10/24/green-building-leed-certification/1650517/
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    Measuring a Buildings Impact

    Leadership in Energy and Environmental

    Design (LEED)Third-party program to verify

    green building projects

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    Measuring a Buildings Impact

    Different point systems for different

    construction types

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    Measuring a Buildings Impact

    Different point thresholds for various LEED

    certification levels

    For LEED buildings:

    Certifed = 40-49 points

    Silver = 50-59 points

    Gold = 60-79 points

    Platinum = 80+ points

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    Measuring a Buildings Impact

    To qualify as a LEED building, it is necessary to

    meet the point requirements and pay the

    requisite fee.

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    Measuring a Buildings Impact

    Buildings can earn credits in a variety of areas:

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    Measuring a Buildings Impact

    Sustainable site credits encourage strategies

    that minimize the impact on ecosystems and

    water resources.

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    Measuring a Buildings Impact

    Water efficiency credits promote smarter use

    of water, inside and out, to reduce potable

    water consumption.

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    Measuring a Buildings Impact

    Energy and atmosphere credits promote

    better building energy performance through

    innovative strategies.

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    Measuring a Buildings Impact

    Materials and resources credits encourage

    using sustainable building materials and

    reducing waste.

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    Measuring a Buildings Impact

    Indoor environmental quality credits promote

    better indoor air quality and access to daylight

    and views.

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    Why Follow LEED Standards?

    Policy considerations

    Reduce environmental footprint

    Conservation

    Tax Considerations

    Governments have supported these policies by

    providing tax incentives for choosing green

    construction instead of traditional construction Potential penalties at a later point (local

    regulations)

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    Sustainability Explained

    http://www.youtube.com/watch?v=B5NiTN0c

    hj0

    http://www.youtube.com/watch?v=B5NiTN0chj0http://www.youtube.com/watch?v=B5NiTN0chj0http://www.youtube.com/watch?v=B5NiTN0chj0http://www.youtube.com/watch?v=B5NiTN0chj0
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    Green Building Defect and Design Claims

    Proper Training

    Training (Site Development, Water efficiency, Energy Efficiency, Material Selection, Indoor environmental

    quality, innovation in Design)

    A lack of Knowledge about the various factors involved in green design can lead to potential legal liability.

    Contractor should hire a BUILDING COMMISSIONING AGENT.

    New technologies and materials enhance potential legal problems.

    Occupant training is also paramount.

    http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=CCaPd6uyMqAfQM&tbnid=6n5HfOmwxUCA8M:&ved=0CAUQjRw&url=http%3A%2F%2Funderstandmennow.com%2Ftough-guy-too%2F&ei=WfHSUcS9JceN0QGN7YG4Bg&bvm=bv.48572450,d.dmQ&psig=AFQjCNHaW1aIGAksn9zPPCcV6rNHC8IVBw&ust=1372865238751589http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=4jR6bgRPlN4JyM&tbnid=fyu1Qzl8I5DRhM:&ved=0CAUQjRw&url=http%3A%2F%2Fwww.headcount.org%2Fdead-heads-not-so-dead-in-the-head%2F&ei=9vDSUZWzCIr90gHylIDQBA&bvm=bv.48572450,d.dmQ&psig=AFQjCNGVPvBWee7_JLBM5u2Lm4bwqNaGog&ust=1372865131683599
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    Green Building Defect and Design Claims

    Construction Oversight

    Proper Construction Oversight

    Owner, bid, build

    Owner, selection, teamwork with contractor and

    primary subcontractors

    http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=u2TmKrZ6tptcrM&tbnid=ZvijvUeTFRaWwM:&ved=0CAUQjRw&url=http%3A%2F%2Fwww.karlabrandau.com%2Finspiring-motivating-keynotes%2Fthe-prize-discretionary-effort&ei=yPHSUfvtJuXN0wGN14CgDQ&bvm=bv.48572450,d.dmQ&psig=AFQjCNH9d9Oy0aEMCGDK_3ggg7Lg7hs68w&ust=1372865343389627http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=VWb87HQLY8W_RM&tbnid=5yoQilR-7pNMTM:&ved=0CAUQjRw&url=http%3A%2F%2Fcatholicbygrace.blogspot.com%2F2010_07_01_archive.html&ei=pfHSUYfSNMXv0gH9-oAQ&bvm=bv.48572450,d.dmQ&psig=AFQjCNGb4RY6YOZRc1C66QLg02lnfjBEmw&ust=1372865311067466
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    Green Building Defect and Design Claims

    Guarantee or warranty in place

    New Technologies hemp, bamboo, clay, reeds, cork

    Tax creditsperformance; municipal, state, federal

    http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=tm2odvyFrd1OQM&tbnid=K_vhfXTPTz3wdM:&ved=0CAUQjRw&url=http%3A%2F%2Fjum.lt%2FWarranty-And-Terms%2F&ei=V_LSUZTrJZS70AHP5IHIDg&bvm=bv.48572450,d.dmQ&psig=AFQjCNFpvtK1_Lmj4ZV8e_S9f0YFu_i6dQ&ust=1372865491789551http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=LvR7oRpXCWNHYM&tbnid=_nS_F5oqHeTHrM:&ved=0CAUQjRw&url=http%3A%2F%2Fwww.complexions.com%2Fenvironment%2Fgreen-partners-awards-certifications%2F&ei=BPLSUcWXGoPR0gGK0IDABg&bvm=bv.48572450,d.dmQ&psig=AFQjCNE7sqOQtkL0PiQYxDQgj_jhSk1dvw&ust=1372865399217235
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    Construction Delays

    Construction Delays: reasonable or unavoidable (Shaw

    Development v. Southern Builders)

    Mechanics lien

    Time of the essence

    http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=kuEY5Y8D2DvcPM&tbnid=EO0L_L0Fj68ouM:&ved=0CAUQjRw&url=http%3A%2F%2Fdailybail.com%2Fhome%2Fdrunken-bernanke-tells-everyone-at-neighborhood-bar-how-monu.html&ei=L_PSUfSDIMH30gGhvoCoDQ&bvm=bv.48572450,d.dmQ&psig=AFQjCNEP42Ql_pV9HdkaOJNjZt2eDg5i0A&ust=1372865699909340http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=JqeAlaCcudW-eM&tbnid=iWn990uV-a7HpM:&ved=0CAUQjRw&url=http%3A%2F%2Fpatriotupdate.com%2Farticles%2Freal-american-heroes%2F&ei=wPLSUdKYCcaO0QGvs4CoDA&bvm=bv.48572450,d.dmQ&psig=AFQjCNHfI0XGa9BLv5TrAA-g1bKtGQ5M0Q&ust=1372865591256935
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    New Standard of Care?

    Should a design professional be held to a new standard of care?

    Higher

    Lower

    Comparative Negligence

    M bl B fit

    http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=T4j0ii3YlxkAwM&tbnid=bfFW-QnFod-SEM:&ved=0CAUQjRw&url=http%3A%2F%2Fwww.hermanmiller.com%2FAbout-Us%2FEnvironmental-Advocacy%2FGreen-Buildings&ei=m_PSUeZZx8zTAdilgdAC&bvm=bv.48572450,d.dmQ&psig=AFQjCNHJ9-LurG8Sw5jHXcearWxWSgwlFg&ust=1372865810370462
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    Measureable Benefits

    How to measure and document green performance claims for accuracy

    (Site Development, Water efficiency, Energy Efficiency, Material Selection, Indoorenvironmental quality, innovation in Design)

    Centralized computer reports

    Designer v. Contractors v. Occupants

    P t ti l P bl d Th i f

    http://www.google.com/url?sa=i&source=images&cd=&cad=rja&docid=GBo9YYca1zd0VM&tbnid=hHJoso7wi7XohM:&ved=0CAgQjRwwAA&url=http%3A%2F%2Fwww.thedailytissue.com%2F2011%2F11%2F30%2Fscott-walker-requires-money%2Fdollar-signs%2F&ei=AfTSUeWEE6LI0QG96YCgAg&psig=AFQjCNFMgTAEzQg83BMsFe-GBgHvUG9YDQ&ust=1372865921434486
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    Potential Problems and Theories of

    Liability

    http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=VKD_5UpoD5rvtM&tbnid=RDqNLvX5OWIEjM:&ved=0CAUQjRw&url=http%3A%2F%2Fspeedydaddy.com%2Fstudy-shows-car-buyers-most-influenced-by-car-salespeople%2F&ei=fEbUUZTUM8uw0QGhyICQBA&bvm=bv.48705608,d.dmQ&psig=AFQjCNGPefX2V5cm8e80CngBdziY4tODfw&ust=1372952535285351
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    LEED Certification as a guarantee?

    Voluntary vs. Regulation Imposed

    Terms of Contract

    Warranty/Guarantee/Theories of Liability

    Warranty regarding products used and additional

    parties exposed to liability (manufacturers, etc.)

    misrepresentation

    Aggressive marketing

    St t l P bl ith

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    Structural Problems with green

    roof Products

    Early green litigation regarding product

    Chesapeake Bay Foundation, Inc. v. Weyerhaeuser Co.

    One of the very first LEED platinum rated buildings in the country.

    Parallams beams made from wood waste environmentally neutral coatings for sealants-statute

    of limitation issues

    Roofs variety of functions-shielding building from sun/wind/rain Insulation from external temperature fluctuation

    Directing water run off

    Providing working platform for important mechanical equipment

    Due to variety of functions the environmental benefits of roof can be found in nearly every LEED

    category however LEED emphasizes environmental benefit without an equal concern for durability

    EX: building owner or designer can achieve one LEED point for painting the building roof with

    reflective coating even though the coating may last less than 5 years. At the same time there may beno credit available for the selection of a high performance but non reflective roofing system that may

    be designed and warranted for 30 years.

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    Design defect

    Architects/Contractors

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    Learning Curve Issues

    Learning curve issues with new products,

    technologies and design, particularly roofing

    materials.

    Historically repair costs support the conclusion thatperformance of any building envelope system

    including roofing systems tend to improve as the

    industry gains experience with that system

    incentive by LEED to favor new technologies thatmay not yet offer optimal performance regarding

    durability.

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    Sustainable products based on energy issues

    under LEEDs criteria may provide minimal

    durability when compared to currently

    available high performing roofing systems.

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    Life Cycle Analysis

    Green product delays

    Not only is there a learning curve with any

    new product or technology, but often new

    products and technology are, at least initially,

    available in limited supply and, due to

    improved technology or understandings of the

    limitations of the new technology areavailable during a limited period of time.

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    Additionally, new product manufacturers may

    themselves exist for a limited period of time

    causing further delays.

    Additional expenses involved in new green

    materials or green products made from green

    materials.

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    Guarantee of Healthy Workplace

    LEEDs rating system has been promoted and contained substantial criteria

    regarding superior habitability of LEEDs compliant building essentially

    claims that if certain criteria are met under LEEDs the building design and

    construction will be superior to those not followed by LEEDs providing a

    healthier environment for inhabitants and users much more

    environmentally sensitive and more importantly energy efficient noteinteresting case regarding USGBC itself filed in Oct. 2010. Gifford v.

    USGBC, et al. false advertising, consumer protection claim and unfair

    competition and business practices showing divergent claims available

    (turned into standing issues regarding plaintiffs lacking same) Note

    language from case The LEED certification process does not assess theactual environmental performance for any structures for which

    certification is sought or granted, but certifies they were designed in a way

    that they should result in better performances.

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    Note that purpose of the promotion and

    advertisement of LEED by USGBC was to

    encourage the expanded use of this

    certification system.

    Court adopted the defense set forth by USGBC

    in its statement that LEED was and is aimed

    at improving environmental performance anddoes not assess actualperformance

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    Use of BIM in Green Buildings

    BIM (Building Information Modeling)

    Integrating and Coordinating Architects,

    contractors, and owners desires in green

    building requirements though coordination of

    all aspects of construction.

    Damage to Reputation from

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    Damage to Reputation from

    Greenwashing Greenwashing refers to misleading and inaccurate information

    provided by contractor/architects/engineers, etc. in order to

    create a green image.

    Generally results from overpromising by builders, designers,

    contractors or suppliers

    Outright misleading of consumers

    Note: recent products offered by carriers including green

    reputation coverage

    Aimed at situation where increased public scrutiny and

    negative media coverage result from a building failing to meet

    required industry standards.

    Common Defenses in Construction

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    Common Defenses in Construction

    Litigation

    Statute of Limitations

    Failure to Mitigate Damages

    Failure to Maintain

    Betterment

    Performance According to Design

    Third Party Liability

    Common Defenses in Construction

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    Common Defenses in Construction

    Litigation

    Opportunity to Cure Defects within 60/120

    Day Window

    Timely Notice to Contractors

    Comparative Negligence (Depends on State)

    Less-Than

    50-50

    Pure

    Contributory Negligence (Depends on State)

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    Insurance Law Insurance Law - coverage / no coverage / endorsements

    Architect

    Contractors

    Owner of Building

    Ex. Target burned down.

    http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=kkoRaa8eyeDk3M&tbnid=Vw6eZx9IWVOOcM:&ved=0CAUQjRw&url=http%3A%2F%2Fwww.usersfirst.org%2Fresources%2Fmobilitymap%2Findex.php%3Fpg%3Dkb.page%26id%3D1549&ei=ARfTUfblA6Tb0wHByYDoAg&bvm=bv.48705608,d.dmQ&psig=AFQjCNGt-pr6HRZ9mYEvieYbg6waaK_9ZQ&ust=1372874877505182
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    Contract Law

    Contract Law - paramount

    Coverage?

    Damages - Are the damages loss of Gold, or cost of bringing that up to theGold standard?

    http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=eMvMQ0U5_UoN-M&tbnid=DN3fT-Iu7EDc_M:&ved=0CAUQjRw&url=http%3A%2F%2Fwww.mastershield.com%2Fleaf-guards-where-do-i-begin%2F&ei=exfTUeOAIanC0QHE64F4&bvm=bv.48705608,d.dmQ&psig=AFQjCNEmhCiEkzbNbDY8krCwBSZlcxnWjA&ust=1372874979262364
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    Tort Law

    higher loss exposure to fire / mold

    http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=5kSMZ0xfb41I8M&tbnid=2bWXFJSdQXyaQM:&ved=0CAUQjRw&url=http%3A%2F%2Fwww.ugo.com%2Ftv%2Fhot-girl-mechanics-luanne-platter&ei=4a7mUfOABrDc4AP82oCYAw&bvm=bv.49405654,d.dmg&psig=AFQjCNEh3L6AD288kN7O0NJ24ep6aQmvMQ&ust=1374158935836651http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=Ptz2mnu05kVUtM&tbnid=lV_UWWSY5yTDuM:&ved=0CAUQjRw&url=http%3A%2F%2Fwww.nydailynews.com%2Fentertainment%2Fgossip%2Fphotos-pictures-brittany-murphy-movie-surface-abandoned-director-pro-article-1.433397&ei=pq7mUYihKsWs4APu-IHwBw&bvm=bv.49405654,d.dmg&psig=AFQjCNGa963MGugxmte_Yzkzz_EQMergVQ&ust=1374158864252477
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    Warranty Law

    Express/ Implied

    EX. Vegetative roof leak

    Damages Is the product not working, or did the product damage

    something? Product claim or did the product cause a diminution of value or causethe owner to evacuate the building.

    http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=1MbDbFJDHetZAM&tbnid=Ig6V1TRY02hR6M:&ved=0CAUQjRw&url=http%3A%2F%2Fscience.howstuffworks.com%2Fenvironmental%2Fgreen-science%2Fgreen-rooftop.htm&ei=Fm7UUdOwEoPz0gG2_oG4Cg&bvm=bv.48705608,d.dmQ&psig=AFQjCNEV7-eFK4n6zpCKn9i4hj-raDqFGg&ust=1372962691970497
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    Negligence and Economic Loss Rule

    Negligence

    Duty of Care

    Breach of Duty

    Causation

    Damages

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    Negligence and Economic Loss Rule

    Duty of care is a legal obligation imposed on

    an individual requiring that they adhere to a

    standard of reasonable care while performing

    actions that could foreseeably harm others. Each person has a duty to do what a

    reasonably prudent person would do

    in the same or similar circumstances.

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    Negligence and Economic Loss Rule

    Breach of Duty occurs when the Probability of

    loss and the amount of loss outweigh the

    burden that could have been taken to prevent

    the loss.

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    Negligence and Economic Loss Rule

    Causation is a two-part inquiry

    First, a Defendants action is a cause in fact if the

    Plaintiffs injury would not have occurred but for

    the Defendants action. Second, a Defendants action is a proximate cause

    of the Defendants injury if it was foreseeable that

    the Defendants breach of his or her duty would

    cause injury.

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    Negligence and Economic Loss Rule

    Damages place a monetary value on the harm

    done. They are compensatory in nature and

    seek to Plaintiff in the situation he would have

    been in but for the harm.

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    Negligence and Economic Loss Rule

    Direct damages are damages that are directly

    out of the Plaintiffs pocket.

    Ex: Repair of damaged portion of building

    Consequential damages are damages that areindirectly out of the Plaintiffs pocket.

    Ex: Lost profits for business closure during

    renovation. Generally, consequential damages are not available

    unless specifically included in a contract.

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    Negligence and Economic Loss Rule

    The majority of States allow a party who

    suffers only economic losses to only pursuant

    to contract law theories.

    A minority of States allow a party who suffersonly economic losses to recover under tort

    theories.

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    Negligence and Economic Loss Rule

    Check your local jurisdiction to see if the

    economic loss rule applies in your State.

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    Conclusion

    Green Construction is a growing aspect of the

    construction industry with many potential

    liabilities to assess during the construction

    process.