The value of green building construction will quadruple in two years, according to a recent study by McGraw-Hill Construction Analytics. The study projects that the value of environmentally friendly construction will increase from $12 billion in 2008 to $60 billion by 2010.

Studies show that green buildings are healthier work environments in which work productivity is often increased.

When it comes to construction and renovation, "going green" usually involves seeking LEED certification. LEED means Leadership in Energy and Environmental Design and is a voluntary national standard for measuring and documenting a building's sustainable architecture developed by the US Green Building Council. A building's "greenness" can be certified on four levels, depending on how many points it accumulates in the LEED rating system.

The federal General Services Administration and a growing number of major cities have begun to require that all new building projects meet LEED criteria.

Getting LEED certification has a dramatic impact on how a developer or company manages a building project:

• The architect and other design professionals should be LEED-accredited, which requires that they pass an exam in sustainable design principles.

• Sometimes going green can raise the cost of the project; sometimes the additional cost is offset by lower operating costs and sometimes not.

• Getting LEED certification entails documenting the steps taken and materials used in the entire design and construction process.

-- Thomas O. Gray,
AIA, DRS Architects,
thomas_gray@drsarchitects.com

Many businesses depend on outside vendors to establish and maintain 401(k) plans for their employees. But what many employers don't realize is that the act of hiring a 401(k) service provider is in and of itself a fiduciary function, which means that the company has the responsibility to act in a prudent manner on behalf of participants in its 401(k) plan.

Fortunately, the U.S. Department of Labor spells out the steps that an employer should take to fulfill its role as a fiduciary in selecting 401(k) consultants in "Meeting Your Fiduciary Responsibilities," available at the Labor Department Web site (www.dol.gov/ebsa).

The department suggests that you give each prospective service provider the identical information about the plan and the services your company needs. You should seek the following information from all bidders:

• The financial condition of the vendor and its experience with retirement plans of a similar size and complexity.

• The experience and qualifications of the professionals handling the plan.

• Any recent litigation or enforcement action that has been taken against the vendor.

• Description of the vendor's business practices, including how plan assets are invested, how the investment directions of participants are handled, how counsel is provided to employees and the proposed fee structure.

You also should ask each vendor if it has fiduciary liability insurance.

The Labor Department recommends that the business document both its selection and monitoring process. And if a committee makes the decision, the business should make sure that all committee members understand their roles and responsibilities.

-- Rick Pierchalski,
BPU Investment Management,
rpierchalski@bpuinvestments.com