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ISSUE

THREE

2009

A B A L F O U R B E AT T Y C O N S T R U C T I O N P U B L I C AT I O N

Delivering a green Ritz-Carlton

8

Retrofitting for green

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How to maximize your green space

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Letter from the Editor MORE of a great thing

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cross the built environment, companies and individuals are increasingly recognizing the opportunities inherent in the green

building movement. In addition to the imperative to “do the right thing”

regarding our nation’s — and the world’s — people and resources, many in the AEC community are also seeking to differentiate themselves in an increasingly competitive economic climate. As one of the top ten green contractors in the nation, we at Balfour Beatty Construction have solutions to help clients and partners capitalize on those opportunities. To that end, we dedicate this month’s issue of MORE. In our feature story we explore the view that our greatest opportunity to make a difference in a greener America may not be with new construction, but with the retrofitting of our enormous inventory of existing commercial and

find out MORE is a publication of Balfour Beatty Construction, produced by our Corporate Communications group. The publication provides information and insights into our industry, company, and business partnerships — because delivering MORE is what Balfour Beatty Construction is all about.

institutional building space. In addition, we take a look at how facility managers can help achieve the intended promised land of “green savings” within their building maintenance programs. We highlight some of the innovative sustainability solutions enabling the first Ritz-Carlton Hotel in the world to pursue Gold LEED® status. And we share a view from a government affairs expert who writes on the new federal cap-and-trade legislation and its potential impact on the construction industry. We are proud also to showcase the impressive work being done at the $640 million Walter Reed National Military Medical Center in Bethesda,

Publisher Balfour Beatty Construction balfourbeattyus.com Editor Connie Oliver coliver@balfourbeattyus.com Contributors Dianne Clifton Stacy Grosgebauer Art Direction Peterson Ray & Company Editorial Office 214.451.1076

Maryland. Our team there is not only working towards achieving Silver LEED certification, but will deliver a facility that provides the very best of today’s healthcare technology to the very deserving members of our armed services. And, if you’re not familiar with Balfour Beatty Construction,

Photography by Tim Buchman | Illustration by Robert Forsbach

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we offer a quick snapshot of our company’s markets, locations, and current portfolio on the inside back cover. We hope you enjoy this issue of MORE.

Connie Oliver, editor coliver@balfourbeattyus.com

Cert no. BV-COC-070601

Balfour Beatty Construction is an eco-engaged company. We are proud to print this publication through a Forest Stewardship Council-certified printer, using 100% recycled paper and all soy inks. Copyright 2009 Balfour Beatty Construction All rights reserved


Table of Contents More Service. More Talent. More Choices.

2

ISSUE

THREE

2009

Retrofitting for green

Sustaining existing building stock may be the next big thing in “green”

8

Delivering a green Ritz-Carlton

A five-star experience for a five-star client

10

How to maximize your green space

Your building has achieved ENERGY STAR or LEED certification — now you can sit back and enjoy the energy savings, right? Wrong.

A premier healthcare facility for our nation’s heroes An inside look at the new Walter Reed page 6

The cap-and-trade bill and the built environment A government affairs expert examines the potential impact of the latest “green” legislation on our industry page 12 ON THE COVER: The Balfour Beatty Construction team recently completed the Ritz-Carlton Charlotte, the first Ritz-Carlton hotel in the world to pursue LEED certification.


Retrofitting for green

Food Lion’s Customer Support Center in Salisbury, NC, began its life as a warehouse. Balfour Beatty’s RT Dooley business unit transformed the 125,000-square-foot space into a LEED Silver-certified facility featuring daylight harvesting, low-VOC paints, and furnishings made from regional and post-consumer recycled materials.


An important opportunity to make a difference in both the environment and in business is becoming clear for the built environment: the very real need to retrofit the inventory of buildings already in stock.

Sustaining existing building stock may be the next big thing in “green”

W

hile buildings account for nearly half our total carbon emissions as a country, those built to green standards put far less strain on our utility grids and water resources. As a result, Federal lawmakers are proposing legislation to institute new limits for carbon emissions on existing buildings. Some states and municipalities are imposing their own requirements and offering incentives to builders and developers who build and renovate in accordance with LEED, ENERGY STAR, and other well-respected green rating or labeling systems. McGraw-Hill Construction estimates that by 2013, the green building market will increase from $96 billion to $140 billion, and that green buildings will represent 20-25 percent of new commercial and institutional construction starts. But according to the March issue of Architectural Record, retrofitting, rather than new construction, is gaining momentum in the green building movement as a result of the constraints and challenges posed by the recession. The greening of America’s existing building stock “For some

jurisdictions,” says Brian Lomel, Regional Sustainability Director for Orlando-based TLC Engineering for Architecture, “the message is out there: You don’t have a choice. And Washington is clearly communicating, ‘We’re all about improving energy efficiency.’ Anyone who owns a commercial building needs to understand, you may have just four to five years before some version of the cap-and-trade legislation takes effect. You better get on board now and look at your capital improvement plans — at least with some baby steps — or you’ll be paying a heavy price, literally, when that day comes.”

In addition, says Lomel, green building and renovation make good business sense for owners. “Occupancy rates are down, the costs of money and fuel are up, and net operating income is declining. That adds up to a zero asset base in many buildings. One thing owners can do to have a positive impact on net income is to reduce the quantity of energy they’re consuming. So in the scramble to be competitive, green building and lower utility costs are the differentiators from one building to another. Prospective tenants have an oversupply of product to choose from. Taking a building green can be a true market advantage. And realistically, today’s marketing advantage is probably going to be tomorrow’s mandate.” Property management company Pointe Group Advisors recently partnered with Balfour Beatty to improve the energy and water efficiency of their existing corporate office space in Plantation, Florida. “Some of our improvements were relatively simple,” reports Devon Newton of Pointe Group. “For instance, we installed rain sensors so sprinklers don’t come on when they

Occupancy rates are down, the costs of money and fuel are up, and net operating income is declining. That adds up to a zero asset base in many buildings. One thing owners can do to have a positive impact on net income is to reduce the quantity of energy they’re consuming. — Brian Lomel, TLC Engineering

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Increased employee satisfaction and reduced absenteeism are measurable benefits of the new sustainable Food Lion office environment.

aren’t needed, occupancy sensors, lighting timers, and all energy-efficient light bulbs. We also instituted a commingled recycling program, reducing environmental impact and the cost of waste disposal.” After receiving ENERGY STAR status, the property management company reported that the building’s utility bills decreased by 8 percent. That’s an annual estimated savings of more than $20,000, without sacrificing their tenants’ level of comfort. What about the costs? Some developers, builders, and lenders cite higher costs as a deterrent to going green. But others point to examples that demonstrate it is possible to achieve a LEEDcertified project for as little as two percent more in costs. Developer Tonti Properties in North Texas found this to be the case for an ENERGY STAR label as well. Tonti hired Balfour Beatty to serve as construction manager on the 270-unit La Valencia at Starwood, the first ENERGY STAR multifamily complex in north Texas. Tonti Development Manager Adam Auensen estimates that going for the ENERGY STAR rating increased their construction costs by about

two percent. To help offset those costs, Tonti took advantage of Texas utility provider Oncor’s $200 per unit rebate program for multi-family residential projects that attain an ENERGY STAR certification. “The label is a closing tool for us,” he says. “In less than a year, we’re 94 percent occupied.” He notes that five other area developers have since followed their lead in pursuing Energy Star certification. Others contend that the benefits of retrofitting place upfront costs in perspective. “There can be a one- or two-month payback for some of these efficiency changes,” says Lomel. “If an aged million-dollar chiller fails, the conventional mindset is to replace that piece of equipment. But looking comprehensively at the system and spending $50,000 to study whether there’s a better, less expensive, more efficient solution — that’s the right thing, the smart thing, to do.” Ingredients for success Every retrofitting project

is likely to have its own set of unique challenges, but the following are some of the most common ways to ensure you’re off to the right start in retrofitting your existing building(s).

Daylighting louvers deflect light to sloped acoustical ceilings, allowing light to reach deeper into the room. 4 | MORe | issue three 2009


Rinker Hall features a high performance exterior metal panel and glass system.

Assemble the right team and establish goals early. Auensen

maintains that it is critical to select the right team and establish sustainability goals up front, before you start spending any money. “Sustainable design and construction has to be a holistic process from the first discussions, to test out alternatives or deal with the site and constraints of the building. There are a lot of untested, faddish products on the market,” he says. “The right team will be able to investigate and vet them, and help an owner to make the right choices.”

and see that all the lights are on at any time of day. What’s the sense of building a $100 million high-rise and then leaving louvers open? It’s like buying a Lamborghini but not changing the oil.” And as owners of public and private facilities across the country are learning, that’s a lesson worth its weight in greenbacks.

Utilize technology. Building Information Modeling (BIM) is a

valuable tool in green building. Balfour Beatty Construction’s vice president of business enhancements, Rich Rantala, explains: “Think about what BIM does. It’s the technology necessary to design and build a project in a 3D environment to the most incremental detail. By doing that on those jobs where we have sustainability goals in place, BIM gives us the ability to design those goals into that environment and then begin to determine what kind of impact they’re going to have on the building. We can experiment with different designs, materials, and engineering applications, to test impact before the client spends a dime.” Maintain the building as it was designed to operate. TLC’s Lomel

relates, “On one building we analyzed, we discovered that the HVAC control system had both the unoccupied and occupied settings at 74 degrees, running all day, all year. I can drive down the street at night, look at some of the buildings,

M.E. Rinker Sr. Hall, built by Balfour Beatty Construction for the University of Florida’s School of Building Construction in Gainesville, FL, is the first state university system building to be LEED Certified Gold. It serves as a model project to showcase sustainable, environmentally friendly, and energyefficient design and construction concepts. As seen here, skylights above hallways and daylight deflection provide better energy efficiency.

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A Premier healthcare Facility

FOR our nation’s heroes the new Walter Reed ith a vision for providing the best in medical resources for the U.S. Military, Clark/Balfour Beatty, A Joint Venture is leading the design-build effort for a state-of-the-art, $640 million medical center on the site of the historic National Naval Medical Center in Bethesda, Maryland.

One of only two Computer Assisted Rehabilitation Environments in the world with a built-in gyroscopic treadmill to simulate walking on different surfaces

Three Linear Particle Accelerator vaults for radiation treatments, with four- to eightfoot-thick concrete walls and custom-made, leadshielded doors

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Full prosthetics department, therapy pool, climbing wall,and lab to help amputees relearn small arms skills

Gait lab for amputees includes technology and equipment to simulate movement and evaluate walking motions to better design custom prosthetics

An enthalpy heat recovery wheel transfers energy between exhaust and incoming outside air and energy-efficient, water-cooled centrifugal chillers, making HVAC systems 30 percent more efficient and providing better air quality for patients


Putting patient care first During construction, all medical center departments and services remain operational, requiring the project team to build temporary facilities and relocate departments and equipment. Workers also receive special training to minimize construction noise in areas where patients are treated for physical and emotional trauma from combat.

165,000-square-foot, in-patient addition to the existing hospital includes critical care units, angiography and nuclear medicine departments, and a private room for every patient

450,000 square feet of phased renovations to existing medical facilities

Angiography suites, emergency room, and 50 negative air-pressure intensive care units

Stormwater management will reduce runoff by 25 percent

Architectural and engineering services led by HKS, Inc.

All new construction is designed to achieve LEED Silver certification

issue three 2009 | MORe | 7


Delivering a green Ritz-Carlton for Bank of America A five-star experience for a five-star client

R

itz-Carlton hotels are deservedly world famous for offering a “five-star experience” both in their luxurious accommodations and in their exceptional customer service. So it was a challenge for Corporate Workplace (the development division of Bank of America) to deliver a luxury, first-class hotel facility within a great construction service experience, but with an added dimension — make it an environmentally responsible building to prove you truly can “have it all.” The Ritz-Carlton Charlotte is the first Ritz hotel in the world to pursue LEED Gold certification. While featuring the topof-the-line luxury amenities characteristic of a Ritz hotel, it also incorporates sustainable features including improved indoor air quality; a green roof to reduce cooling loads, heat island effect, and storm water runoff; widespread use of recycled

and regionally produced construction materials; and water consumption reduction of up to 34 percent. Balfour Beatty served as construction manager for both the Ritz-Carlton Charlotte and the adjacent 1 Bank of America Center office tower — and Charlotte-based RT Dooley (recently acquired by Balfour Beatty) managed construction of interiors for both buildings. “This has been a very positive experience,” says Ben Yow, Senior Construction Project Manager for Bank of America. It was my first green project, but we had such a great team, it made the experience outstanding.” “Of course, we had plenty of challenges,” Yow relates, “not the least of which was convincing the Ritz-Carlton that it was possible to build a LEED certified hotel to their high standards.” Take the example of the imported stone selected by the designer for the lobby and public spaces. LEED points are awarded for using local materials to reduce transportation and energy costs. “So the team worked diligently with a stone supplier to locate beautiful, high quality local stones, completely satisfying both the Ritz and the design team.”

Above: Bank of America has made a commitment to invest $20 billion over the next 10 years in environmental programs, including $1.4 billion in LEED new construction and renovation of existing buildings. Right: RT Dooley located a regional stone supplier, which added LEED points to the project and exceeded Ritz-Carlton expectations.

8 | MORe | issue three 2009


In another case, the team wanted the performance of low-flow showerheads but with a more elegant appearance. RT Dooley persuaded Kohler to create a new product specifically for the Ritz that incorporated the low-flow into one of their high-end design lines. “This created not only a product that the Ritz loved, but that Kohler is marketing broadly today,” says Yow. Another example of how Balfour Beatty’s and RT Dooley’s team was able to ensure sustainable elements were incorporated into this project was the use of complete interior mockups of two hotel rooms. Positioned side by side, these mockups enabled the team to see, touch, and experience these rooms as guests would experience them — with all the sustainable features and materials included. “It was a laboratory of sorts,” says Bank of America Project Executive Mike Sharp, “where we could experiment on the two rooms and develop best practices in sustainability and construction before replicating what we liked in the actual hotel environment. The rooms also provided an added benefit of giving the Ritz a place to start early marketing of the hotel, before the actual building was ready to show.” Sharp adds, “With a group consisting of multiple designers, developers, and contractors, plus a dozen bankers, it was important for us to ensure from the beginning that we all understood and programmed into our DNA the mission and core values of the team. At the end of the day, we wanted the

people of Charlotte, our future occupants, the Ritz-Carlton guests, city planners, county inspectors, and people throughout the Side-by-side guest room bank to say, ‘Not only mockups demonstrated to the was that a spectacular client that the sustainable project, I was so room, which featured alternative impressed with the way shower and bath materials, that team went about faucets, showerheads, and light their business.’” fixtures, offered just as much “In the end,” luxury to the end user. Sharp concludes, “team charters, measurable goals and scorecards, spectacular architectural drawings, and complex analytics are all well and good. But when you combine these tools and processes with dedicated, resourceful, solution-minded subject matter experts with a passion for what they do … well, that’s when you cross the line and become a real high-performance team. Balfour Beatty and RT Dooley turned in a five-star performance. And we were very blessed to have those kinds of people on this team.”

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How to

maximize your green space Your building has earned the ENERGY STAR label or achieved LEED certification — now you can sit back and enjoy the energy savings, right?

Wrong.

A

ccording to a 2008 study by the U.S. Green Building Council, of 121 new LEEDcertified buildings through 2006, 53 percent aren’t living up to their potential energy savings. These findings indicate that owners are not seeing promised payoffs for investing in sustainable designs and materials. The study results also point to a greater truth: a building’s energy performance depends on human behavior as much — if not more so — than it does sustainable design. While building owners and managers can control the operations and maintenance of a facility, some choices are simply outside their influence — in particular, how tenants use the building. For example, if a building is designed to utilize daylighting, but tenants are closing the blinds and using desk lamps, the building could be consuming more energy than necessary. For a building to reach its energy savings potential, all stakeholders — the owner, facility manager, maintenance staff, and tenants — need to be engaged. “It’s a partnership,”

10 | MORe | issue three 2009

explains Devon Newton of Pointe Group, a Florida-based property management firm. “Explain to your tenants how subtle changes don’t have to be expensive or inconvenient, but can deliver tangible savings to everyone.” The key, then, lies in educating tenants on what choices are available to them, and what benefits they can expect to receive. Hines, a leading international real estate firm, recently expanded its internal green office program to its 4,300 tenants across the globe. Their Green Office Guide complements both the LEED rating system and Energy Star’s “Bring Your Green to Work” programs, helping tenants make sustainable choices in their offices. “Encouraging our tenants and their employees to make greener choices will pay off in environmental dividends, as well as in energy savings,” said Hines President and CEO Jeff Hines. “Our own employees have embraced the program; and our tenants have been asking for advice. We hope this is only the beginning of an ongoing dialogue of how we can all share responsibility for reducing greenhouse gas emissions.”


What facilities managers and tenants can do

Free

Low Cost

Moderate Cost

Make way for fresh air

See the signs

Switch to CO2 Sensors

Keep air vents clear of paper, files, and office supplies. It takes as much as 25 percent more energy to pump air into the workspace if the vents are blocked.

Energy Star qualified exit signs use 3-8 times less energy than incandescent and fluorescent illuminated exit signs, and reduce maintenance. LED exit signs are also easier to see through smoke and in other emergency situations.

Control your air conditioning and heating systems with a CO2 sensor, which regulates the air quality of your facility by measuring how much CO 2 is present (getting a more accurate estimate for occupancy). These hightech sensors result in more energy-efficient operations and better air quality.

Put your blinds to work Lower blinds on outside windows in the summer and raise them in the winter to help conserve cooling and heating energy. And during the summer, angle all window blinds up at 45 degrees, so heat radiating through the window will travel up and out of the tenant space.

If it’s unused, unplug it Battery chargers — even when they are not actively charging a device — can draw 5 to 20 times more energy than is actually stored in the battery. Other appliances also consume energy when in “off ” or standby mode. For example, you save 50 percent of energy when you turn off your laser printer rather than leaving it idle, but you save the remaining 50 percent when you unplug it.

Replace incandescent lamps Incandescent lamps convert nearly 90 percent of input energy into heat rather than light — and all that heat needs to be cooled by your air conditioner. Energy Star qualified compact fluorescent lamps (CFLs) use 75 percent less energy than a standard incandescent bulb and last up to 10 times longer. Replacing a 100-watt incandescent with a 32-watt CFL can save approximately $30 in energy costs over the life of the bulb.

Save on a rainy day Install rain sensors so your sprinkler system won’t come on when it rains, and save on your water usage bill.

Green your office equipment Office equipment, including computers, refrigerators, and other appliances, account for over 40 percent of electricity consumption in large office buildings. Swap out your computer hardware for Energy Star models, and look for multipurpose units for printing, copying, faxing, and scanning.

Rethink your irrigation source Rather than using fresh water, consider collecting rainwater for landscape irrigation. Or, if your local codes allow, use “gray water,” which is non-industrial wastewater generated from domestic processes such as dish washing, laundry, and bathing.


Insights Each issue, we invite an outside voice to weigh in on topics of interest to the construction industry. This issue, a government affairs professional discusses the potential impact of the latest “green” legislation on our industry.

OPINION:

Cap-and-trade bill could distress construction industry for limited environmental benefits

A

s we in the construction industry begin to see signs that the worst of our economic challenges may be behind us, we may face a new battle: on the regulatory front. In June, the House of Representatives narrowly passed the American Clean Energy and Security Act (ACES), or H.R. 2998, a bill that intends to place most of the American economy on a carbon cap-and-trade system. Buried within more than 1,400 pages of ACES are provisions that will give the federal government authority over local building codes. Within a year after ACES passes, U.S. states must enforce stricter building codes, raising the bar for energy efficiency up to 30 percent above current codes. This performance mandate increases up to 50 percent above current codes for commercial buildings by 2015 and for residential buildings by 2014. While these requirements are appealing to many people and are at the center of intense lobbying by environmental groups, citizens need to put ACES into perspective. New construction is a small piece of the

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puzzle, thanks to steady advancements in codes and building techniques. For commercial projects, many municipalities already require that new construction meets LEED standards for energy efficiency. And new residential homes built in the last 10 years only account for 2.5 percent of all greenhouse gas emissions. A wise environmental policy should focus on upgrading older, inefficient buildings. A better way to do this is through market incentives, such as tax credits, that encourage sustainable practices in a way that mitigates their upfront costs. Instead of focusing environmental policy where it will count the most, Congress appears to favor a policy that adds thousands of dollars to the cost of new projects that will not only take decades to offset with utility savings, but could also further distress an already hammered real estate market. Associated General Contractors (AGC) projects that legislation such as ACES would “halt U.S. investment in commercial construction

by making it more burdensome and less economically attractive.” The bottom line: ACES trumps economic and environmental realities by adding significant costs to all new commercial and residential projects, while environmental gains will measure only fractions of a percent. After passing the House by a narrow 219-212 vote, ACES will require compromises to pass in the Senate. Much of the debate will focus on the carbon emissions trading scheme at which the bill primarily aims. While only a few pages are devoted to the building code mandates, these pages will significantly affect the construction industry. Phil Crone is the Director of Government Affairs and Green Building Programs for the Home Builders Association of Greater Dallas and a staff member for Green Built Texas, a sustainable building program committed to creating awareness and interest in the construction of higher-performance, lower-impact buildings.


Blueprints Want to learn more about what we do? In each issue, we highlight a few of our projects currently underway throughout the United States.

select projects

quick snapshot

 4.8 billion in $ backlog  06 projects 4 underway in 26 states  erving 333 clients S in both public and private sectors

Wake County Justice Center

The Austonian Condominiums

Raleigh, North Carolina

Austin, Texas

 emorial Hospital of South Bend M North Pavilion

Client: Wake County

Client: Benchmark Land Development, Inc.

South Bend, Indiana

Architect: O’Brien/Atkins Associates, P.A.

Architect: Ziegler Cooper Architects

Client: Memorial Hospital of South Bend Architect: BSA LifeStructures

Narcoossee Road Widening

New Federal Building

Osceola County, Florida

Washington, D.C.

Client: Osceola County Public Works Department

Client: U.S. General Services Administration

University of Central Florida College of Medicine

Engineer: Kimley-Horn and Associates, Inc.

Architect/Engineer: PageSoutherlandPage

Lake Nona, Florida

and Hankins and Anderson

Client: University of Central Florida Architect: HuntonBrady Architects Rendering shown above

key markets

Corporate Office

Mission Critical

Criminal Justice

Education

Multi-Unit Residential

Government

Public Assembly

Healthcare

Retail

Hospitality

Research and Labs

Military Housing

Transportation

Atlanta, GA | Charlotte, NC | Dallas, TX | Fairfax, VA | Fort Myers, FL | Fort Worth, TX Nashville, TN | Orlando, FL | Plantation, FL | Raleigh, NC

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Balfour Beatty Construction, a leader in the U.S. commercial construction industry for 76 years, provides general contracting, at-risk construction management, design-build, preconstruction, and turnkey services nationwide. The company consistently ranks as one of the nation’s largest building contractors and is an ENR top-ten green contractor. With full-service regional headquarters in four of the largest building markets across the country, Balfour Beatty Construction is a division of Balfour Beatty plc, a global leader in engineering, construction, services, and investments.

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