Green construction is on the rise, and for good reason. The move to conserve energy and shrink carbon footprints continues to permeate both consumer and commercial behavior. Because buildings represent a significant portion of global energy and water usage, making new construction more environmentally-friendly is a strategic area to address. However, as the expansion of green initiatives continues, there are new, unforeseen risk factors to be addressed.
A recent Wall Street Journal article, featuring commentary from Palisade Vice President Randy Heffernan, took a closer look at this trend. The piece delved into the risks associated with green building materials and alternative energy sources. One way to combat those factors is through the utilization of risk analysis software powered by Monte Carlo simulation, which is the basis of @RISK. Randy addressed this point in the article:
“When you bring in elements such as new and often more expensive building materials or building features that are more weather-dependent—like solar and green roofs—the uncertainty of the entire project is compounded. Overall, we see growing awareness about the need to quantify as much as possible and account for the inherent risks using probabilistic approaches.”
Green construction is likely to expand with new construction projects. Organizations will certainly need to be prepared to tackle the expected and unexpected risks that come with it. Being able to uncover risks and determine the probability that they may or may not occur will place green construction organizations in a position to plan accordingly.