Green Building Risk Management Obstacles

Green Building insurance

Compliance and cost issues

Theodore L. Senet, a noted Los Angeles construction and insurance attorney, recently listed nine risk management issues dealing with green construction:

Compliance with developing green building codes and local requirements

  1. Compliance with contract requirements related to certification levels
  2. Compliance with contract requirements related to energy savings and operational performance
  3. Obtaining tax incentives or meeting tax credit requirements
  4. Meeting investment criteria and financing requirements
  5. Additional time and costs related to the design, approval and fabrication of new building products and systems
  6. The ability of new green products and systems to perform to traditional performance standards
  7. The sequencing, constructability and commissioning of new systems, products and processes
  8. Compliance with project schedules and the impact on fast track projects.

Source:Kenneth C. Gibbs, “Green Building: New Benefits for Society and New Challenges for Risk Management;” Insurance Journal, November 17, 2008; Vol. 86, No. 22.


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