Despite the economic recession, the number of green building projects across the U.S. continues to grow. Yet, as they assess the widening opportunities for building green, building owners, contractors, architects, engineers, and home builders express concern about a variety of risks that may be associated with these projects, including potential financial exposures, uncertainty about evolving regulatory standards and legal issues, validating the qualifications of consultants and subcontractors, and assessing the long-term performance of green building materials, among other potential issues.

A new report from Marsh found that despite the mounting enthusiasm for green-built and LEED certified projects, the potential risks associated with them may be significant but construction project participants are not sure how best to manage these risks.


According to Marsh's report, building owners, contractors, and design firm executives are most concerned about potential financial risks, including the impact of green design, construction and ownership on profitability, cost, and the ability to complete projects on time and on budget.

The report – based on feedback from 55 senior executives involved in green design and construction who participated in one of a series of four half-day forums held from mid-2008 to early this year by Marsh in major U.S. cities – ranked the top five risks associated with green building projects.


The Marsh forum participants cited standard of care and related potential legal risks as the second most significant potential exposure. These risks encompass the challenges associated with achieving appropriate LEED certification as required by the owner, tenant, or other critical third party, defining the standard of care as the green building environment evolves as well as the competency of team members, and the evolving building codes with the potential establishment of strict liability standards.