Chapter 14 - Risk Management for Green Retrofit, Residential, and Commercial Construction Projects

Abstract

This chapter considers the risk management of green construction projects. In this chapter, the risks of green retrofit, residential, and commercial construction projects are identified, the criticalities of the risks in green and conventional construction projects are compared, and feasible measures that may mitigate risks are also proposed. For green retrofit projects, the top three critical risks are “postretrofit tenants’ cooperation risk,” “regulatory risk,” and “market risk.” Results also show that green retrofit projects face risks of a higher magnitude than conventional retrofit projects. For green residential construction projects, “complex procedures to obtain approvals,” “overlooked initial high cost,” and “unclear requirements of owners,” are the top three critical risks. Additionally, a comparison of risk criticalities between green and conventional residential projects showed that the former faces a more challenging situation in risk management. For green commercial construction projects, the top three critical risks are “inflation,” “currency and interest rate volatility worsened by the import of green materials,” and “durability of green materials.” Results also show that green commercial construction projects face challenges and risks of a greater magnitude than conventional ones and these challenges include the adoption of green ideas, materials, technologies, and incurred cost issues.