Exploring Economic Impacts of Sustainable Construction Projects on Stakeholders: The Role of Integrated Project Delivery

Cheng Siew Goh*, Feizhen Su, Steve Rowlinson

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

1 Citation (Scopus)


Climate urgency has driven sustainability and the circular economy into the agenda of the construction industry. Despite growing efforts to promote sustainability, there is still a lack of a widespread implementation of sustainability in construction projects. Cost is often viewed as a main barrier to increasing the adoption of sustainable development in construction projects. Seeking cost efficiency appears as one of the central concerns of construction stakeholders in their sustainability moves. This paper presents an assessment of economic impacts of developing sustainability in construction projects. A questionnaire survey was adopted in the study to collect views of professionals on the economic implications of sustainable construction projects. The results reveal that energy cost saving and green subsidies are the main economic benefits derived from sustainable construction projects. Economic risks such as cost overrun and risks of not meeting the expected rate of return are primary factors hindering the development of sustainable construction practice. The study, however, found that, in general, construction stakeholders perceived sustainable construction to bring more positive economic impacts than negative economic impacts for most construction stakeholders. The economic value of a sustainable construction project can benefit the construction industry value chain from clients to suppliers and end users, following an increasing demand for sustainability in the construction sector. This paper offers insights into understanding the economic implications of sustainable construction projects. Thinking around economic impacts that span the entire building life cycle is essential to reveal the true economic value of sustainable construction projects. The authors indicate how construction stakeholders, by taking an integrated project delivery (IPD) perspective, can develop a more holistic view that allows them to gauge the underlying economic value of sustainable construction projects by incorporating long-term cost efficiency in the decision-making.
Original languageEnglish
Article number04523026
Pages (from-to)1-9
Number of pages9
JournalJournal of Legal Affairs and Dispute Resolution in Engineering and Construction
Issue number3
Early online date11 May 2023
Publication statusPublished - 1 Aug 2023
Externally publishedYes

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