Understanding the mechanism through which adoption of green construction site practices impacts economic performance

Abstract

This paper examines the process through which a construction project’s implementation of green practices in its site processes influences its economic performance by meeting environmental performance standards. The uniqueness of this study stems from its focus on practices carried out on the construction sites, and the consideration of project economic performance as against corporate level performance. A conceptual model is proposed and tested using a sample of 168 construction projects completed by class A contractors in Nigeria. The data were analysed through the Partial Least Squares Structural Equation Modelling (PLS-SEM) technique. Results obtained showed that the model satisfied all the criteria for both the measurement model and structural model for formative constructs. The study results indicate that environmental performance only partially mediates the relationship between green construction site practices and economic performance. The results imply that, it is not in all occasions that a project meeting environmental performance standard will result in the construction project been economically profitable, as adopting green construction site practices could lead to economic performance without necessarily performing environmentally. It is recommended that contractors should exhibit some level of flexibility while adopting green practices on site in order to achieve a balance between green practices, environmental performance and economic performance.