Green cost more? An empirical study on the costing of green building projects worldwide

Abstract

Hosted by the Canadian Institute of Quantity Surveyors (CIQS)Subtheme 2: Delivering High Performance Buildings Cost-EffectivelySustainability is an inevitable trend. However, the number of green building developments is still limited. Previous studies have attributed this to the perception of “Green costs more” as presented by quantity surveyors to construction clients. It is argued that the commonly adopted figure of 5-15% as the extra cost for green has ‘seriously’ overestimated capital cost. In view of the above, the current study aims to investigate green buildings from the ‘cost’ perspectives. To achieve this aim, a questionnaire survey has been designed to investigate the cost and features of green building projects across the globe. The survey was sent via various professional institutes, green building consultants, architectural, engineering and construction firms, and so on, in countries across the globe, including Brunei, China, Hong Kong, Japan, New Zealand, Singapore, Sri Lanka, Philippines, United Arab Emirates, Nigeria, and so on. The statistical data collected was then analyzed using SPSS. The study results indicate that, when comparing with conventional building projects, i) there is 37% increase in capital cost in green building projects, ii) amongst the various green building design and features, green planning & design and green construction are the most frequently adopted ones, which incurred 8.63% increase and 30.33% decrease in the spending of the items respectively, and iii) the values of green building projects are higher in terms of price, rental cost and premium in market valuation. The study results are essential in fostering the development of green buildings around the world