An Analytical Hierarchy Process Approach to Risk Assessment in Green Building Projects

Abstract

The research was carried out to develop a new risk assessment model during green building construction project in Malaysia that covered social, technical, economic, environmental and political risks (STEEP) according to Analytical Hierarchy Process (AHP) method. The data for this research were gathered through interview an online questionnaire to the individual that involved in green building construction project. The green building project could be successfully delivered by meeting cost, time and quality goals. From this research, it was found that among the key goals, cost was identified as the main criteria to be considered by all parties that involved in the project particularly project management team, followed by time and quality. Cost also became the highest priority for all potential risk except for political risk. This result indicated that managing the project cost was the most important during construction as to ensure that the project expenses were within the baseline budget, minimize the additional cost and the project could be successfully delivered. Eventually, AHP method was used to assess the prioritization of STEEP risk impacts on green building project performance. From the risk priority ranking exercise, technical was found to be the most likely risk to occur during construction activities and potentially gave severe impact to cost, time and quality goals if it was not properly managed by project management team. Following technical risk, economic became second risk as it would lead to potential insufficient project funds by an owner or funding agent that potentially delayed the project completion. Environmental risk, as the third risk gave medium impact to green building construction activities, followed by social risk. The risk due to political aspect gave low impact to construction activities as Malaysia was considered as political stable country. The same government leads the country; hence there were minimum policy changes in construction. xvi This research evidenced that the AHP method could be used as decision-making tools for green building project in Malaysia and would be a useful tool to effectively and efficiently assist project planners and managers to become more knowledgeable and effective in their decision making.