Managing risks in green building supply chain

Abstract

The call for green building development provides the construction supply chain with new business opportunities. However, there are significant risks associated with such opportunities. This research aims at understanding the major risks and their distributions in the supply chain and developing strategies to manage these risks. 250 sets of survey questionnaires were set out to selected industry professionals in Australia and 93 sets were returned with 91 sets valid. The results show that the risks in green building development vary and are unequally distributed throughout the supply chain, but there are common risks with ‘lack of commitment in the supply chain to go green’ and ‘higher investment costs’ as the most important risks overall. The results also show that considerable improvement could be made to green building performance through research and development, training and education, supply chain co-ordination, knowledge and information sharing, experience accumulation and technology application. The research finding suggests that members in the supply chain: record green-related information in a central database; utilize expertise of green building professionals; clearly communicate green building objectives and responsibilities to all supply chain members; invest in green building training and education regarding responsibilities, benefits, technology and solutions; and team up with suppliers and manufacturers for developing green-complied products and materials.

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