RISK MANAGEMENT IN GREEN CONSTRUCTION PROJECTS IN SINGAPORE

Abstract

Risk management is an important part of decision-making process in construction and has been widely accepted as a vital tool in the management of projects. With the mounting emphasis on environmental concerns, many companies are steering towards sustainable development and implementing green measures into their projects. With the support of the government, Singapore has also shifted the focus to green construction industry and can be seen in the number of green buildings increasing from a mere 17 in 2005 to more than 1180 in 2012. The green construction phenomenon is expected to continue to grow but it is important to be aware that there are risks involved with going green. Even with the increasing number of studies performed on construction risk management, there has been little research conducted on risk management in the context of green construction. Therefore, this study aims to identify the unique risks in green construction projects, compare the criticality of risks with traditional construction projects as well as to provide recommendations on the critical risks identified. To achieve the objectives, a questionnaire survey was conducted with 31 project managers from different companies. The result indicated that: “Selection of project teams, materials, systems, suppliers with relevant knowledge”, “Unclear detail design or specifications”, “Inefficient communication or coordination”, “Default supply of materials and equipment and plants delayed”, “Unfamiliarity with contract conditions” and “Labor or materials prices fluctuations” are identified as prominent critical risks to green construction projects. Further analysis showed that there is little overall disparity in the ranking of risks between traditional and green construction projects. With the help of this study, companies taking part in green construction projects can identify the most critical risks and thus develop appropriate mitigation measures. Also, the findings of this study provide an understanding of risks for the companies that intend to take on green construction projects in Singapore.