Conflict of Interest (COI) Policy and Procedures for the LEED Canada for Homes Program (Last Updated: June 29, 2012)

Transcription

1 Conflict of Interest (COI) Policy and Procedures for the LEED Canada for Homes Program (Last Updated: June 29, 2012) This policy document formally defines the allowable and prohibited types of services that can be provided by members of a Verification Team for a LEED Canada for Homes project and the required disclosure policies. The document contains the following sections: 1. Introduction to Conflicts of Interest (COI) 2. Defining and Identifying a Conflict of Interest (COI), as related to LEED Canada for Homes verification 3. Process for Declaring Conflicts of Interest 4. Best practices to Avoid or Minimize Conflicts of Interest 5. CAGBC Enforcement of COI Policy This policy (and related procedures) formally goes into effect on November 1, At that time, all LEED Canada for Homes Quality Assurance Designees (QADs) are responsible for enforcement of this policy for all LEED Canada for Homes Verification Teams. 1. Introduction to Conflicts of Interest Generally, a conflict of interest (COI) is a situation in which an individual has competing professional or personal interests. Such situations include: 1. Financial. Decisions may be influenced by financial gain, 2. Legal. Decisions may be influenced by liability risks, and 3. Ethical. Decisions may be influenced by reasons other than compliance with the required standards. These competing conditions frequently exist. Specifically, for the LEED Canada for Homes program, this policy indicates the actions that a Verification Team is allowed to perform on a specific LEED Canada for Homes project. It also identifies those that cannot be performed because of specific conflict of interest concerns and those that must be disclosed if performed. A summary of this policy is presented in Exhibit 1. A detailed explanation of this policy is provided in the remainder of this document.

2 Exhibit 1 Overview of CAGBC s Conflict of Interest (COI) Policy for a LEED Canada for Homes Project LEED for Homes Project LEED for Homes Provider Organization Verification Services (Verification Team) QAD 1. Green Rater 1. Energy Rater 1. Conflict of Interest Project Team Design and Construction Related Services Designer Builder Sub-Contractors Supporting Staff 1. Consultants Notes: 1. On a given LEED Canada for Homes project, there is a major conflict of interest if any member of the Verification Team contributes to design and/or construction related services (i.e., becomes a de-facto member of the Project Team). Note: Anyone providing verification-related services is considered to be on the Verification Team. 2. Members of the LEED Canada for Homes Provider organization that are not members of the Verification Team for a given project, may participate in design and/or construction related services, without a major conflict of interest. However, the Provider organization must disclose their involvement in design and/or construction related services to the home buyer. 3. Members of a Verification Team on a given LEED Canada for Homes project (Project #1) may provide design and/or construction related services to another LEED Canada for Homes project (Project #2), provided that they are not members of the Verification Team on Project #2. However, they must disclose their involvement in design and/or construction related services to the home buyer on Project #2. The Verification Team, that delivers these verification services, includes several individuals, including: LEED Canada for Homes Provider Quality Assurance Designee LEED Canada for Homes Green Rater, Energy Rater (e.g., HERS or ERS Rater), and Supporting Staff.

3 The LEED Canada for Homes Quality Assurance Designee (QAD) is an individual with a LEED Canada for Homes Provider organization tasked with the oversight of the verification process for LEED Canada for Homes projects. The assigned QAD on a given LEED Canada for Homes project is encouraged not perform the functions of a Green Rater on that project but the dual role is not formally restricted. All conflict of interest disclosures must be signed by the QAD (as well as by the LEED Canada for Homes Green Rater under the QAD s supervision on that project) using the form in Attachment A. 2. Defining and Identifying Conflicts of Interest There are three types of verification-related services, as pertains to the Verification Team discussed in this document: Prohibited Services that the Verification Team cannot deliver because they result in a major conflict of interest (i.e., providing design and construction related services to a LEED Canada for Homes project). Conflicted Services that the members of the Verification Team or members of the Provider Organization, outside of the Verification Team, may deliver, but do present a minor conflict of interest and must be disclosed using a COI disclosure form. Non-conflicted Services that the Verification Team are allowed and encouraged to deliver (e.g., visual verifications, performance testing, energy modeling). No COI disclosure form is required. Each of these types of conflicts of interest is described in more detail below. a. Prohibited Services- Definition of a Major Conflict of Interest The following types of services constitute major conflicts of interest and shall not be performed by any member of a LEED Canada for Homes Verification Team: Design support services related to the LEED Canada for Homes Program, including: Specifying products, Creating drawing, details, or specifications, and Performing design-related calculations. (e.g., Manual J and D calculations, or calculating the volume of cisterns for rain-water / gray-water storage to be use for equipment sizing). Energy modeling services are permitted. Designing /specifying the durability related measures. Selling any product that will be installed in the LEED Canada for Homes project. Installation services of any product in the project. Construction support services related to the LEED Canada for Homes program (e.g., air sealing services, etc.). Acting as responsible party / signing any Accountability Form. Involvement in financing, sale, or purchase of the project.

4 Additional Considerations Verification Teams may not bundle any conflicted services in the same contract as for LEED Canada for Homes Verification Services. A separate contract shall be used that clearly indicates that these additional services are not required as part of LEED Canada for Homes verification services under the LEED Canada for Homes program. Provider organizations must each decide whether to perform these conflicted types of services. These tasks involve a level of engagement with the Project Team that may result in additional liability exposure. Verifications teams that choose to engage in these conflicted services may need additional liability insurance coverage. b. Conflicted Services- Definition of a Minor Conflict of Interest The following types of services are considered minor conflicts of interest and must be disclosed (unless otherwise noted): 1. All services performed by Verification Team are paid by the Project Team. This is an inherent conflict of interest for most LEED Canada for Homes projects. All contracts between Verification Teams and Project Teams shall explicitly indicate that the fee for services includes only the on-site verification of the LEED Canada for Homes measures that were designed and installed by the Project Team. The Verification Team shall be not explicitly or implicitly guarantee the certification for any project. If additional services will be provided by the Verification Team (outside of on-site verification), those services must be listed separately in contracts. No disclosure is necessary. 2. Under the Residential Energy Services Network (RESNET) National Standards, Home Energy Rating System (HERS) Raters are allowed to perform design and/or construction related services. However, they must disclose their conflict of interest for every project that they rate. 3. The Verification Team may provide design and /or construction services that are not related to the LEED Canada for Homes Rating System (e.g., structural design calculations). 4. Other members of the Provider organization, but who are not members of the Verification Team, may provide design and/or construction related services. Such services may include: Design support services related to the LEED Canada for Homes Program, including: Specifying products, Creating drawing, details, or specifications, and

5 Performing design-related calculations. (e.g., Manual J and D calculations, or calculating the volume of a cistern for rain-water / graywater storage to be use for equipment sizing). Construction support services related to the LEED Canada for Homes program (e.g., air sealing services, installation services, etc.). Acting as responsible party / signing any Accountability Form. Designing /specifying the durability related measures. c. Definition of Non-conflicted Services The following types of services are not considered a conflict of interest. These types of services will typically be provided by the Verification Team on every LEED Canada for Homes project. 1. Preliminary Ratings 2. Energy modeling, including ERS / HERS 3. Third-Party performance testing 4. Verifying that green measures are installed in accordance with the Rating System. This includes: Visually verifying that green measures are installed Reviewing product literature provided by the Project Team Verifying that calculations were performed by the Project Team (e.g., verifying that Manual J and D calculations, or calculations for sizing of cisterns for rainwater/graywater storage, were completed and reviewing any values specified in the Verification & Submittal guidelines. Conducting calculations related to verification, not design (e.g., unit density). 5. Rating the project, and completion of the LEED Canada for Homes Checklist 6. Educating the Project Team (including trades) on the LEED Canada for Homes rating system and verification procedures 7. Educating the Project Team (including trades) on general green building best practices. 8. Educating the Project Team on subcontracts, and scopes of work for trades. Additional Considerations In terms of education services (items 6-8 above), the Verification Team shall only identify options available to a Project Team. The Verification Team may not make specific recommendations or design decisions for the Project Team. The Verification Team is prohibited from delivering these types of design services. 3. Process for Declaring Conflicts of Interest

6 a. Required COI Disclosure Procedures Major Conflicts The LEED Canada for Homes QAD must ensure that major conflicts of interest do not occur on any LEED Canada for Homes project. If the QAD becomes aware of a major conflict of interest, they shall notify LEED Canada for Homes Program Staff immediately. Program Staff will work with the QAD and the Project Team to rectify the situation. b. Required COI Disclosure Procedures Minor Conflicts 1. If members of the Verification Team engage in design and/or construction services that are not related to the LEED Canada for Homes Rating System, this shall be disclosed using the LEED Canada for Homes COI disclosure form (Attachment A) for that project. The LEED Canada for Homes QAD is responsible for this disclosure. 2. If members of the Verification Team engage in permitting support services, this shall be disclosed using the LEED Canada for Homes COI disclosure form (Attachment A) for that project. The LEED Canada for Homes QAD is responsible for this disclosure. 3. If members of the Verification Team are paid directly or indirectly by the electric and/or natural gas utility serving this home, this shall be disclosed using the LEED Canada for Homes COI disclosure form (Attachment A) for that project. The LEED Canada for Homes QAD is responsible for this disclosure. 4. If members of the Provider organization, other than the Verification Team, engage in any of the Prohibited Services, this shall be disclosed using the LEED Canada for Homes COI disclosure form (Attachment A) for that project. The LEED Canada for Homes QAD is responsible for this disclosure. 5. If any verification services are completed without charge (voluntarily) to the Project Team, this must be disclosed on the COI disclosure form (Attachment A) for that project. c. Required COI Disclosure Procedures Non-conflicted Services There are no required disclosure procedures for Non-conflicted Services. 4. Best Practices to Avoid or Minimize Conflict of Interest Identifying COI During the earliest possible stage of every LEED Canada for Homes project, the QAD shall determine if there is a potential conflict of interest. The QAD shall determine this by asking the following questions: Contract Manager for Provider Organization:

7 What services are being conducted by members of the Provider Organization, who are not members of the Verification Team? If a COI exists, when do you plan to submit a COI disclosure form? Green Rater: What services are being conducted by the Green Rater What services are being conducting by other members of the Verification Team? If a COI exists, when do you plan to submit a COI disclosure form? Energy Rater What services are being conducting by you, the Energy Rater (i.e. HERS / ERS Rater) When do you plan to submit a COI disclosure form? Completion and Submittal of COI Disclosure Forms The LEED Canada for Homes QAD s review of the project shall include the following steps: During the preliminary stages, the QAD should confirm that the Verification Team and any other involved parties (e.g., Project Team members that work for the same organization as members of the Verification Team) have a process in place to ensure that the overall integrity of the rating will not be compromised. At the pre-submittal stage, the QAD s review of the project should include follow-up questions to ensure that this process was followed. In any project where the Verification Team performs services that require COI disclosure, the following steps must be completed: 1. QAD shall interview and request information from members of the Verification Team. 2. The COI disclosure form shall be must be completed and signed by the Green Rater. 3. The COI disclosure form shall be reviewed and signed by the QAD. 4. A copy of the COI disclosure form must be submitted to: The Principle Contact of the Project Team (prior to any verification services being performed) CAGBC and the Certification Body (with the submittal package), and The homeowner (in the LEED Canada for Homes Operation and Maintenance Manual and with the copy of the LEED Canada for Homes Certification Certificate) 5. The COI disclosure form shall be maintained in Provider s records for that project (for three years), per their QA plan. 5. CaGBC Enforcement of COI Policy CaGBC will enforce the above COI policy in the following manner.

8 1. Certification Calls. The certification body shall ask questions on the services that the Provider delivered to each project. If COI is required, the certification body shall review the required COI disclosure forms. 2. Random Annual Auditing. When the CaGBC randomly audits a LEED Canada for Homes Provider, they will review the Provider s records, to affirm the Provider s compliance with their QA Plan. Completed COI forms should be included in the records for projects, as appropriate. Violations of the LEED Canada for Homes COI Policy include: Verification Team members performing prohibited services, and Failure to complete and submit COI Disclosure Forms, when needed. Provider organizations that violate the COI Policy will be subject to disciplinary action, as described in the LEED Canada for Homes Disciplinary Policy. In general, violations will trigger disciplinary actions from probation to suspension. Repeated violations will result is revocation of Provider status.

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