Soft Cost Elements That Affect Developers’ Decision to Build Green

Despite all the hype about green building, many developers are still resistant to the idea of building green due to the common perception that green building construction is expensive. This contradicts with scholarly findings that identify only a marginal cost premium or none at all given that green design is considered during the design process and planning stage. Nevertheless, cost implications continue to become an issue when deciding to build green. The planning stage is of strategic importance as decisions made at this early stage would influence the project cost thereafter. Using analysis of existing literature, the paper identifies six elements of soft cost that are considered in the planning stage. The elements include consultants, green building consultant, certification, commissioning, market, and tax. Out of the six elements, commissioning represents the bulk of soft cost for buildings seeking green certification. The study concluded that, although hard cost may have a bigger impact on the project cost, but soft cost is the hidden cost which people tend to ignore. Poor consideration of soft cost during planning stage may lead to over-realistic expectations and ultimately, overlooked cost additions.

A Foresight into Green Housing Industry in Malaysia

Bringing change to the housing industry requires multiple efforts from various angles especially to overcome any resistances in the form of technology, human aspects, financial and resources. The transition from conventional to sustainable approach consumes time as it requires changes from different facets in the industry ranging from individual, organisational to industry level. In Malaysia, there are various efforts to bring green into the industry but the progress is low-moderate. Will the current efforts bear larger fruits in the near future? This study examines the perceptions of the developers in Malaysia on the future of the green housing sector for the next 5 years. The introduction of GBI rating system, improvement of awareness and knowledge among the stakeholders, support from the government and local industry and the effect of competitive advantage would support brighter future. Meanwhile, the status quo in rules and regulation, lack of public interest and demand, organization disinterest, local authority enforcement and project cost escalation would hinder a faster progress.

Measuring the Level of Housing Defects in the Build-Then-Sell Housing Delivery System

When the Malaysian government announced the implementation of the Build-Then-Sell (BTS) system in 2007, the proponents of the BTS have argued that the implementation of this new system may provide houses with low defects. However, there has been no empirical data to support their argument. Therefore, this study is conducted to measure the level of housing defects in the BTS housing delivery system. A survey was conducted to the occupiers in six BTS residential areas. The BTS residential areas have been identified through the media and because of the small number of population, all households in the BTS residential areas were required to participate in the study to enable the researcher to collect the data concerning defects. Questionnaire had been employed as the data collection instrument and was distributed to the respondents of this study. The result has shown that the level of defects in the BTS houses is low, as the rate of defects for all elements are slight. Such low level of defects has apparently only affected the aesthetic value of the houses.

Evaluation of Housing Defects in Build-Then- Sell Houses: A Study of Six Residential Areas

The Build-Then-Sell (BTS) is a novel system implemented in Malaysia after a number of complaints have been received from buyers in the preceding Sell-Then-Build (STB) system. When the government announced the implementation of the BTS in 2007, proponents of BTS have asserted that the new system will provide houses with low level of defects. Their argument however is not supported by any empirical data. Hence, this study is conducted to evaluate the housing defects in BTS houses. Six BTS residential areas have been surveyed to collect the defects data. Questionnaires were administered directly to the occupiers in each of the BTS houses through door-to-door visits. The result has shown that the rate of defects for the six residential areas is ranged from minor to slight, which only affect the aesthetic value of the house.

Main Elements of Soft Cost in Green Buildings

Green buildings have been commonly cited to be more expensive than conventional buildings. However, limited research has been conducted to clearly identify elements that contribute to this cost differential. The construction cost of buildings can be typically divided into “hard" costs and “soft" cost elements. Using a review analysis of existing literature, the study identified six main elements in green buildings that contribute to the general cost elements that are “soft" in nature. The six elements found are insurance, developer-s experience, design cost, certification, commissioning and energy modeling. Out of the six elements, most literatures have highlighted the increase in design cost for green design as compared to conventional design due to additional architectural and engineering costs, eco-charettes, extra design time, and the further need for a green consultant. The study concluded that these elements of soft cost contribute to the green premium or cost differential of green buildings.