Managing risk in green building projects: Toward a dedicated framework

Purpose: The formal application of project risk management (PRM) in green building projects is still an emergent part of project management. The purpose of this paper is to provide a conceptual PRM framework that increases the probability of success in green building projects by minimizing unexpected events. Design/methodology/approach: This paper interprets the related literature and uses the opinion of green building experts. It exposes some pertinent elements needed for structuring the PRM framework and suggests some mitigation actions for high-ranked risks. It also performs ex-post analysis on a case study to practically validate the proposed framework. Findings: It is found that high initial cost, lack of experienced contractors and subcontractors, consideration of lifecycle inflation and experience in green building project management are the most significant risks. To address them, the framework proposes a rigorous selection of contractors, provision of financial incentives from the government, setting of a time buffer to accommodate legal process and development of a deliberate proactive financial model. Originality/value: This paper contributes to the body of knowledge and practice by providing a reasonable strategy for employing the PRM framework capable of effectively managing risk in green building projects to keep organizations competitive within the business environment. The overall aim of this study is to contribute to the further development of the area of risk assessment and risk management from a knowledge-based perspective.