Critical thinking assignment - page

Course: MSc Project Management

Course code: BUIL 1052

Course Coordinator: Professor Keith Jones/Dr Ann Holder

Student name: Trong, Nguyen Bao LE

Student ID number: 000537196

Topic

SUSTAINABLE ‘GREEN’ CONSTRUCTION IS AN UNAFFRODABLE

LUXURY IN AN ECONOMIC RECESSION

Content

Introduction

‘Green’ building in the economic recession

Initial cost

Technology

Performance

The solution for ‘green’ construction in the economic recession

Conclusion and recommendation

Reference

Name: Trong, Le Nguyen Bao – Student ID number: 000537196

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Introduction

The term ‘‘green’’ or ‘sustainable’ has been more and more common in construction

industry in this century. Lockwood (2006) defines “‘green’ or sustainable buildings use key

resources like energy, water, materials and land much more efficiently than buildings that is

simply built to code. They also create healthier work, learning and living environments with

much more light and cleaner air, and contribute to improved employee and student health,

comfort and productivity”. ‘Green’ construction may be a general trend of new construction

method in architecture due to its benefits in economic and environment. However, the

benefits of ‘green’ building, which are from the operation cost, are usually in the long-term

investigating. In additional, the year 2008 is known as an economic crisis period which

effects on many fields of economic all over the world, especially in construction industry.

There are many construction projects had to cancel or on hold. An example of this is in UAE,

according to HSBC Global Research, there are fifty nine large projects in UAE have been

affected by this recession. Therefore, it is important to considering carefully when go

‘‘green’’ in the economic recession.

‘Green’ building in the economic recession

There are no doubt in the needs and benefits that ‘green’ building can contribute to

environment and its profits for in long-term saving cost. Comparing with conventional

building in both use and construction process, according Edwards (1993) the construction

process create about seventy million tonnes of waste and buildings in use comprise nearly

50% of the total carbon dioxide emissions in UK. As consequently, construction industry

may be the main factor in reducing the waste and negative effects on environment. In the

Name: Trong, Le Nguyen Bao – Student ID number: 000537196

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other hand, ‘green’ building may be the key for this issue. It contributes many direct benefits

which are economies in fuel bill, market advantage and lower long-term exposure to

environmental or health. All of these factors could be obtain during long-term life cycle cost.

Moreover, it also contributes many indirect benefits which are healthier to use, have a

psychological advantage and enhance company image. However, ‘green’ building also

contains risks which are in initial cost, technology and performance. Especially in economic

recession period, these risks are revealed more clearly.

Firstly, initial cost of ‘green’ building is always higher than conventional building, because it

has to use higher technologies and new materials which help the building operates more

economy, effective and efficiency during its life. Kats, et al (2003), state that “… ‘green’

buildings cost 10% to 15% more than conventional buildings”. Furthermore, ‘green’ construction

usually divides into many levels which are depended on the standard of ‘green’. For example,

with BREEAM sustainable home standard, according to BREEAM (2008), there are six levels of

‘green’. LEED is also a ‘green’ standard in US and a number of other countries on the world. It is

also divided into four rates which are Certified, Silver, Gold and Platinum. Each of levels or

rates have different efficient in ‘green’ so that they also have different costs. These costs are

based on the level of equipments which are used for ‘green’. However, this may be a problem to

owners who would like to ensure the benefits of chosen ‘green’ level can payback. Moreover, this

cost is also in the high level work forces that have good skills in designing, constructing and

operating ‘green’ buildings. In additional, during the operating time of ‘green’ building, the

costs of maintenance is also increased due to the using of high technology equipments and

also in their numbers. These costs can be offset by the life time saving costs. However, the

profits of ‘green’ building will be reduced. In constructions, economics may be the main

factor which influence considerably to project. As consequently, these issues may be serious

problems when the economics are in crisis. The owners have not enough budgets to going

‘green’ in a short-term. They may make the ‘green’ costs unaffordable. The ‘green’ buildings

Name: Trong, Le Nguyen Bao – Student ID number: 000537196

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which have not enough efficient in saving costs and environment are called ‘green-washing’

and they may effect on the long-term benefits of ‘green’ building.

Second, ‘green’ technologies have been developed considerably in recent years. They

contribute a number of advantages to ‘green’ construction in both performing efficiency and

reducing costs. An example of this is sustainable materials. Sokol, (2009), state that “… six

hundred new materials to its library each year, and in 2008, about two hundred and fifty of

those new materials had sustainable attributes—a fifty percent increase over 2007”.

However, there are some disadvantages of new ‘green’ technologies which are in practice and

cost. These disadvantages usually in new technologies which are use the high technologies.

Architect and engineers are using the new technologies in the building which are usually

more expensive than the ordinary technology. The reason of this is to enhance the efficient of

building. An example of these technologies is photovoltaics and ‘green’ nanotechnology.

However, they have more efficiency and effective than the current ‘green’ technologies. As

consequently, they need to be proven in practice in order to ensure that these technologies are

reliable. In the other hand, on the economic recession, the owners are unaffordable to obtain

these technologies due to lack of budgets. Moreover, these technologies also contain risks.

There are lacks of evidences in order to ensure that some ‘green’ technologies are reliable.

Finally, in performance, the most important factor of ‘green’ building which makes it more

common is the life cycle saving cost. These benefits are usually in saving energy cost,

recycling. For example, Edwards,(1993) states that “ an example of successful ‘green’

building is the headquarter of the NMB in Amsterdam…building save more than £300,000 a

year in energy costs against a conventional office building of similar size”. These benefits are

usually from high quality system in using energy such as solar panels. Moreover, for the

long-term saving costs, the ‘green’ equipments have to achieve the high quality in order to

operate effectively and efficiency. As consequently, the costs for these system increase and

Name: Trong, Le Nguyen Bao – Student ID number: 000537196

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they influence the initial capitals. This may be a problem for the owners who have lack of

budgets in the economic recession period. Moreover, Kaplan-Seem, A (2009) state that “In

fact, architects may find that the recession makes promoting ‘green’ building based on

lifecycle cost analyses much harder to do”. As a result of economic crisis period in 2008 and

2009, the price of energy dropped dramatically. This has made the role of ‘green’ building in

saving energy cost become blur.

The solution for ‘green’ construction in the economic recession

An economic recession is only a short-term period while a construction project or economical

life of building is a long-term investment strategy. Moreover, in the economic boom, going

‘green’ will produces a large number of advantages and benefits during economical life of

building. However, in the economic recession period the owners may take risks when they

going ‘green’. Thus, they have to consider carefully in their project when going ‘green’ in

order to avoid negative effects on the later time. Kaplan-Seem (2009) state that “The

recession may also alter the kinds of ‘green’ features and methods architects choose to

employ. While strategies like natural ventilation should not be affected, high-cost features

like photovoltaics may become less common”. Going ‘green’ in a low level such as natural

ventilation that the costs are not high may be a solution for this issue. However, buildings

need to be designed carefully so that they can go ‘green’ after the economic recession.

Moreover, in this term, the owners could make their building ‘greener’ by retrofitting the

existing building. Kaplan-Seem, (2009) also contend that “A focus on retrofitting, rather than

new construction, is likely to be one way in which the recession affects the ‘green’-building

movement”.

Name: Trong, Le Nguyen Bao – Student ID number: 000537196

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Conclusion and recommendation

There are many advantages in ‘green’ constructions due to its benefits that contribute to

commercial, society and environment. Moreover, in a long-term, ‘green’ construction

produces more profits than conventional building. However, in the economic recession,

‘green’ construction has to face with many disadvantages. The owners who invest ‘green’

construction are also taken risks. These occur from the initial costs that are always higher

than conventional construction. The key of this issue is how to balance between the initial

cost of ‘green’ construction and the budgets. Going ‘green’ in a low level or making existing

building greener may be the best solution of ‘green’ construction in the economic recession.

Name: Trong, Le Nguyen Bao – Student ID number: 000537196

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Reference

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Name: Trong, Le Nguyen Bao – Student ID number: 000537196

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Kaplan-Seem, A (2009), Is the ‘green’-Building Market Recession-Proof? March 4, 2009

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Name: Trong, Le Nguyen Bao – Student ID number: 000537196