Profitability Implications of Sustainable Contracting

Abstract

Certain construction companies have adopted "green" building methods and practices while most of the industry continues to provide traditional construction services in traditional ways. The green building methods include managing waste streams effectively, using environmentally friendly materials, and working with other green companies and groups. The benefits of green construction have been explored as they relate to the environment, society, and even building owners. Several logical benefits have been postulated for green contractors, from better brand name to reduced costs associated with waste and insurance. This research explores the correlation between green construction and the economic success of companies. Through financial data analysis of a study group of green companies in the construction industry, a control group of similar companies without a sustainability focus, and the construction industry as a whole, the connections between business strategy and profit are investigated. Qualitative and subjective data are employed to assist in the interpretation of the quantitative findings, and the entire study is placed into context by the use of a contractor survey which explores the current perceptions of green construction in the industry. The major conclusion of the study is that there is not a notable negative economic impact associated with being a green company in the construction industry.

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Document Details

Document Type
Technical Report
Publication Date
Aug 01, 2006
Accession Number
ADA471907

Entities

People

  • Dude L. Underwood

Organizations

  • Purdue University

Tags

Communities of Interest

  • Biomedical

DTIC Thesaurus Topics

  • Business Administration
  • Commerce
  • Construction
  • Construction Materials
  • Contractors
  • Data Analysis
  • Dynamics
  • Economic Impact
  • Environment
  • Finance
  • Health Care
  • Literature Surveys
  • Materials
  • Money
  • Standards
  • United States
  • Websites

Fields of Study

  • Business

Readers

  • Gender and Food Studies
  • Government Contracting/Procurement.
  • Systems Analysis and Design