Effects of green construction on project’s economic performance

Abstract

Purpose This study aims to examine the effects of green construction site practices on the economic performance of projects executed by “class A” contractors in Nigeria. The effects of stormwater management, materials management waste management and energy management on economic performance were examined. Design/methodology/approach Data was collected through a survey of class A contractors in Nigeria, and 168 usable responses were received. The partial least-squares structural equation modelling technique was used to analyse the collected data. Findings It was observed that all the green construction practices studied had significant effects on the economic performance of construction projects with the greatest effect from energy management. Practical implications The results imply that green construction practices generally lead to economic performance. The study has both theoretical and practical implications, as it helps both policymakers and contractors better understand the relationships between these variables of green construction practices and economic performance to better plan for their projects and for the government to formulate appropriate policies. Originality/value The study’s findings makes significant contributions to the ongoing discussion on the relationship between green construction practices and economic performance. The relationship established between stormwater management, waste management, materials management, energy management and economic performance in this study is different when compared with those in other similar studies.