Green building reshapes development firms' structure and contracts for sustainability.
The article explores how development firms adapt their structures for green building projects, which can increase costs and uncertainties. By studying the organizational changes firms make, the researchers found that firms adjust their contracts and structures to accommodate green building. The study used a model to predict how firms respond to changes in costs and uncertainties, and a survey of developers confirmed these predictions. The survey showed that firms engaging in green building projects adjust their structures and contracts to better handle the challenges associated with these projects.