The process of and barriers to environmentally-oriented real estate development : examining the role of organizational structure, project delivery methods and contracts in low impact development

Low Impact Development (LID) is a site planning approach that limits the environmental impact of development on the local hydrological regime. By preserving and mimicking natural landscape features, LID introduces a new site planning and stormwater management paradigm to mainstream real estate development and represents a product innovation in the industry. Through the examination of three case studies, this thesis explores the sources of innovation and the risks of implementation. It then examines whether changes to delivery and contract structures might be necessary to redistribute risks and incentives among members of the development team in order to realize LID practices. The investigation finds that the private sector plays an integral role in advancing LID. Often developers are the first adopters of this innovation. The success of their projects motivates municipalities to encourage the innovation through regulation and training. The projects that present the most innovative approach institute small, integrated, multi-disciplinary corporate and project team structures. Examining the process of implementing LID practices reveals that innovation does not introduce new sources of risk; rather it exacerbates existing sources of risk at each phase of development.