Risk management of green retrofitting projects in Sri Lanka

Abstract

The comparison made upon other developed and developing countries proves that green retrofitting projects are entirely new to the Sri Lankan construction industry. Green retrofit can be defined as an upgrade, extension and alternation, change the use of building, renovation of existing buildings. In such, partially or wholly occupied existing buildings are upgraded by integrating sustainable or green features to achieve its foremost benefits. However, green retrofitting of existing buildings are riskier than constructing a new building as where it requires a proper strategy to manage the risk. Hence, evaluating the risk in green retrofit projects is very helpful to construction industry as it may assist to get right decision about the project and also to well handle and manage it. Thus, this research aims to propose probable risk responsive strategies through a comprehensive risk assessment of green retrofitting projects in Sri Lanka. As the first step in research process, thirty risk factors were identified by reviewing key literature relating to five major categories, such as, financial, market, industry, performance and legislative risks. The identified factors are evaluated through questionnaire survey which was conducted among forty experienced green professionals in three selected green retrofitting projects in Sri Lanka. The survey data are analysed based on its criticality by using descriptive statistical analysis techniques to identify high, moderate and low risk factors. According to overall results, ten risk factors are determined as 'critical' factors, such as, construction cost, inflation, energy saving uncertainty, warranty risk, delay in project completion, requirement of permits and their approval, design changes, procurement delay, damage to structure or property etc. Finally, risk responsive strategies are proposed to avoid, reduce, retain and/or transfer the identified risks of green retrofit projects as the final outcome of this research. Further, this research implies a way of ensuring an effective risk management of green retrofit projects in Sri Lanka and other developing countries.