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
- Compliance with contract requirements related to certification levels
- Compliance with contract requirements related to energy savings and operational performance
- Obtaining tax incentives or meeting tax credit requirements
- Meeting investment criteria and financing requirements
- Additional time and costs related to the design, approval and fabrication of new building products and systems
- The ability of new green products and systems to perform to traditional performance standards
- The sequencing, constructability and commissioning of new systems, products and processes
- 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.