ABSTRACT
Risk associated with the creation of a sustainable building is split into two main types (1) financial and (2) technical. Most consider these to the main inhibitors.
Financial risk can be reduced by examining the business case and considering options on a long-term lifecycle basis. The business case must be thorough and credible. Investors and lenders act in a fiduciary capacity and all must be satisfied that an investment is sound, well considered and as risk free as possible. A well-developed business case is therefore essential to the success or failure of a sustainable building.
Technical risk can be reduced by understand the technical processes involved and the type of new technology under consideration. Another approach is to pass on the technical risk to a third party and let others with experience in this area deal with any problems that may arise.
The guiding principles presented in this chapter reveal that financial risk can be eliminated through the involvement of a third party Energy Services Company (ESCO) through the use of an Energy Performance Contract (EPC). Technical risk can be reduced significantly by careful planning, use of established techniques and a willing to change processes. Sustainable buildings should be considered in the design stage and choosing the right combination of energy saving options is crucial to success. Finally, making investment decisions is subjective and dependent upon an individual’s personal circumstance. When that decision to invest is made, it must be considered on a long-term basis in order to minimise risk.
