When establishing the material cost for MR credits, is the cost of materials defined by what the general contractor pays to buy a product or what the manufacturer pays to manufacture a product? We multiply that value by the stated percentage of recycled content by weight for assembled products. For example - for precast concrete elements, the contractors "material" cost (without their installation labor, overhead and profit) is the fully manufactured cost of the cast stone plus delivery. However the manufacturer's "material cost" (without their manufaturing labor, overhead and profit) is much less due to the large amount of labor involved in the manufacturing. The general contractor's material cost to purchase the precast may be $100,000, but the manufacturer's material cost to manufacture it may only be $20,000. The LEED reference manual seems to lean toward the cost to the general contractor, and says that you should "exclude any costs for labor and equipment once the material has been delivered to the site". No mention of the manufacturer's labor and equipment costs, so it seems like they are referring strictly to the GC's cost. Any thoughts? Thanks
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Keith Steurer
Structural EngineerShive-Hattery, Inc.
34 thumbs up
June 4, 2012 - 12:06 pm
Based on conversations with other professionals and research in the reference guide, I am settling with the following statement for our cost declaration forms: "Costs are to be final material costs to the owner including contractor’s overhead and profit, taxes, delivery, storage and handling charges. Costs shall exclude labor and equipment costs related to the final installation once the material has been delivered to the site."
Emmanuel Pauwels
OwnerGreen Living Projects
137 thumbs up
October 4, 2012 - 2:26 pm
Keith,
Are you saying that the cost to be taken into account is NOT the invoice that the general contractor pays to the supplier but the invoice that the general contractor makes to the project owner, including his overheads, taxes and profit. The % recycled content that is provided by the manufacturer then needs to be applied to the cost on the invoice from the GC to th Owner. Is that correct?