4.6 Article

Addressing the capital cost barrier to sustainable construction

Journal

DEVELOPMENTS IN THE BUILT ENVIRONMENT
Volume 7, Issue -, Pages -

Publisher

ELSEVIER
DOI: 10.1016/j.dibe.2021.100049

Keywords

Sustainability; Housing; Whole-life cost; Value; Quality

Funding

  1. Middle East University (MEU)/Jordan

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This research aims to address the capital cost barrier to sustainable construction by integrating concepts and processes from sustainable construction, value management, and total quality management into a novel approach for reducing whole life costs. Findings revealed that the capital cost of a LEED silver certified building in Jordan is around 20-25% higher than traditional buildings, but clients in Jordan find an additional cost of 5-10% acceptable for LEED certification, regardless of operational cost savings.
This paper aims to address the capital cost barrier to sustainable construction (SC). Concepts and processes associated with sustainable construction, value management (VM) and total quality management (TQM) have been integrated into a novel approach to whole life cost reduction based on a framework and three supporting processes aimed at improving project management understanding and decision making. Data collection was a triangulated approach across three stages: focus groups (23 participants); Delphi study (8 participants - 2 rounds); and validation questionnaire (20 respondents). The research revealed that the capital cost of a LEED silver certified building in Jordan is around 20-25% over the traditional buildings' capital cost. However, the increased capital cost that clients' in Jordan consider being acceptable for LEED is 5-10% - irrespective of the savings in operational costs.

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