Green Building Construction Cost Surcharge: An Overview

Abstract

This study aims to investigate the cost surcharges of green buildings. In this study, the green construction cost surcharge (GCCS) is defined as the additional capital costs associated with sustainable building features and practices. More specifically, this study intends to (1) identify the green cost surcharge difference on a global scale; (2) identify the green cost surcharge differences across building types; and (3) gain a basic understanding of the causes of cost differences. A literature survey on green building surcharge costs was performed, resulting in a total of more than 1,300 cases from 11 countries. The cases included both residential and nonresidential units. The results show that there is a regional difference among green cost surcharges; however, the median and mean green cost surcharges are 7%. Furthermore, there is a cost difference among building types, with school buildings having the highest cost surcharge. Varied cost estimation and collection methods also lead to different green cost surcharge results; the differences between industry findings and academic research are very apparent. Lastly, 11 cost variables are identified as well.