A web-based framework for estimating premium costs of potential LEED new construction projects

LEED-certified green buildings benefit the owner not only in reducing operating costs, but also in improving the wellbeing of the occupants. LEED premium cost is the extra money a project owner invests in order to upgrade a conventional building to a Green Building. From the financial perspective, the amount of the premium cost is the major concern that keeps investors from targeting LEED certified projects. This study presents the development of cost estimation simulation model: LEED Premium Aided Cost Estimation (LEED PACE) for accurate premium cost in order to help the project owner/investor/architect to estimate the premium cost for potential LEED projects. The estimation program is built off on traditional building code (normally referred to as local municipal codes) and LEED system, which provides project based premium cost estimation. LEED PACE provides potential LEED credits acquisition based on existing project design information. Furthermore, PACE lists all targetable LEED credit(s) with corresponding premium cost(s) to inform project owner what LEED credit(s) can be acquired by changing project design elements and contributing extra cost(s). The parameters used to calculate extra construction costs are extracted from Green Building Cost RS MEANS. Although LEED PACE estimates extra construction cost needed for a traditional project in the City of Los Angeles to target LEED certification, the framework of building LEED PACE can be used to make LEED premium cost estimation for traditional project without geographical limitations. This empirical tool is expected to assist building owner/investor/policymaker in making better-informed decisions towards LEED certification from the economic perspective of sustainability.