Thursday, December 16, 2010

LONG TERM OR SHORT TERM...which is the better plan?

A new standard has been delved out by the U.S. General Services Administration (GSA), ALL new construction and major renovation projects must meet LEED Gold certification. This new regulation has created heated debates on both sides of the issue. The reason? MONEY

It's safe to say that everyone agrees that being more efficient with one's energy consumption is advantageous in the long term, but at what price up front? This simple question is easily answered using a Life Cycle Cost Analysis (LCCA). One simply calculates the up front cost of using the more efficient system, subtracting the cost savings over a specified period of time, and if the number is negative then the more expensive up front cost system actually saves you money.

The problem with the new regulation, is that this LCCA is not being taken into account. This means that there are some projects which would cost less money in the long term by using more conventional, less efficient systems. In order for one to truly appreciate the situation, imagine if you bought a home anticipating only being in that home for 5 years. Would you spend extra money on a roofing shingle because it'll last 30 years rather than 20 years? The answer is no. It doesn't make economical sense. While the effort on this new program should be applauded for it's intentions, good intentions do not equal good methodology. Perhaps in the future our elected officials will take into consideration the whole picture before they jump on the bandwagon of the latest ideas and concepts, performing their due diligence and critically question each and every program before increasing the spending of limited tax dollars.

http://archrecord.construction.com/news/daily/archives/2010/12/101207leed_gold_required.asp

- Design is what you make it.

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