The Effect of Implementing Green Construction on Project Performance: A Comprehensive Study Using Structural Equation Models (S.E.M.)

Abstract The construction industry plays a crucial role in development but also faces serious challenges related to environmental impact and occupational safety. The sector contributes significantly to producing solid waste, air, water, soil pollution and emissions of hazardous gases. In addition, high noise levels from construction activities can harm public health. Workplace accidents at construction sites are also a major problem, with impacts ranging from worker safety to project costs. Green construction offers a comprehensive solution to address these issues. By adopting sustainable practices such as efficient waste management, using environmentally friendly materials, and implementing modern construction technologies, projects can reduce their negative impact on the environment. This study uses the Structural Equation Model (S.E.M.) to analyze green construction implementation’s effect on project performance. This study identifies 20 green construction indicators and evaluates their impact on five aspects of project performance: cost, time, quality, Occupational Health and Safety (O.H.S.), and Green Building performance. The analysis results show that green construction has a significant and robust effect on cost performance and a moderate impact on time, quality, and O.H.S. performance. Project documentation is identified as the most influential green construction indicator, while conservation and energy efficiency have the lowest effects. Another interesting finding is that implementing 86% of green indicators is optimal for Green Building Performance, indicating a balance between sustainability and project efficiency. This study provides valuable insights for practitioners and policymakers in optimizing sustainable construction practices and developing more effective regulations for the green construction industry.