Greenfield Development: Pros and Cons for Construction Companies

Undertaking construction projects on undeveloped land provides companies with significant design flexibility and often accelerates construction timelines. Greenfield development is the process of building on land that was previously unused or used solely for agriculture.

While it presents numerous advantages, it also demands careful planning to manage risks and minimize potential negative impacts on the environment and local communities.

Greenfield sites offer a blank canvas conducive to innovative design and construction techniques that create sustainable structures to meet clients' specific needs. Understanding this process' distinctions helps construction companies considering projects capitalize on greenfield development’s benefits while addressing its inherent challenges.

In this article, we’ll explore the upsides and challenges of greenfield development and compare them to developing previously used sites, also known as brownfield development.

Understanding Greenfield vs Brownfield Development

Greenfield development projects are most common in suburban and rural areas, where open areas or farmland can become sites for new projects. In contrast, brownfield development projects use land previously developed or used for industrial purposes.

Many project types are well-suited for greenfield development because they can be built with the latest environmentally sustainable materials, designed to the client's exact needs and started from scratch with no older structures in the way.

Common greenfield projects include manufacturing facilities, data centers, power plants, airports, residential complexes, new mixed-use commercial and residential developments, industrial parks, warehouse and distribution centers, hospitals and long-term care facilities.

Each type of land use has advantages and drawbacks, and choosing the most profitable site type depends on the proposed project and the characteristics of the location.

Pros of Greenview Development

When choosing a site for construction, examining risks and possible financial advantages helps developers and contractors find the best area to break ground for the project. 

Redevelopment projects require modernization, while greenfield projects can use the latest materials and techniques from the outset. More greenfield pros include:

• Design flexibility to meet project needs easily
• Likely absent of toxins that require remediation
• Faster construction schedule due to lack of demolition or remediation
• Lower construction costs
• Potentially fewer zoning restrictions
• Suitable for innovative and sustainable construction techniques and materials
• Ability to expand structure to meet future needs

Cons of Greenfield Development

Greenfield land may lack the infrastructure that can add cost and complication to a project, including site utilities and roadways for future occupants to access the structure. Zoning and local regulations can vary for each type of site, and greenfield developments may encroach on wildlife and open space, which can cause public backlash and the need for environmental assessments.

Developing open land can contribute to suburban sprawl, but it also offers owners and architects a free hand to build to suit the proposed use. A few other drawbacks include:

• Further from urban areas, less convenient for users
• Private financing needed, likely no government development incentives
• Meeting government environmental regulations may be challenging and can entail extra costs
• Some sites are complex to build on, such as wetland areas

Pros of Brownfield Development

Brownfield projects are often more readily accessible for communities than completely undeveloped land and have already been cleared of wildlife and other pre-existing environmental factors. Other pros to brownfield development include:

• Existing utility infrastructure at the site
• More centrally located and near existing transportation
• Government redevelopment funding often available
• Regulatory requirements are known from previous development of the site

Cons of Brownfield Development

Like greenfield development, brownfield development also has some drawbacks:

• Longer timelines with extensive site preparation
• Existing space constraints leave less space for future expansion
• Higher costs due to environmental remediation and demolition or modification of existing structures
• Zoning issues in more densely built areas can be restrictive

Selecting a Greenfield Development Site

While greenfield development in certain areas may raise environmental concerns, communities can be attracted to sustainable projects that minimize environmental impacts, require less energy and water and use space efficiently to help preserve natural habitats around the project. While some green space will be used, a project with innovative environmental practices and materials will be better received by community and government stakeholders.

Assessing the project's transportation needs and access to population centers can help determine possible locations. Depending on the project plans, workers, the general public and shipping traffic may need to get to and from the site. Projects that bring jobs and economic gains to communities can generate more public support, so situating projects can depend on local economic and social needs.

Developers and contractors will need to perform an environmental assessment to determine suitability for construction and identify any environmental or geological red flags. Collecting data using geographical information systems (GIS) improves the efficiency of site analysis. Additionally, investigating the location's applicable codes and environmental regulations will help determine whether the property can be developed with minimal red tape.

Mitigating Risks in Greenfield Development

Proper planning and comprehensive research during site selection and predevelopment will reduce the risks of unexpected environmental, regulatory or technical difficulties. Determining accurate costs for building site infrastructure additions such as roadways, power, water, sewer and drainage will yield more precise budgeting.

Every construction project has unknown factors that may impact the schedule and budget, but thorough preconstruction planning can minimize risks by anticipating issues that are likely to arise when building on a pristine site.

Brownfield development is often considered riskier and more costly due to the site contamination and existing structures. However, creating infrastructure, regulatory compliance and geologic and environmental concerns add risks and costs to greenfield development projects.

Construction contractors and developers often underestimate the costs and time needed for greenfield projects to complete environmental impact studies, negotiate permits for previously undeveloped property and tackle regulatory challenges. 

Land-use restrictions, possible habitat destruction and the potential for liability over hazardous materials require careful consideration. Project delays and legal fees can be unwelcome surprises for projects with insufficient planning and knowledge of greenfield challenges.

Well-coordinated construction project management can help to overcome hurdles before and during greenfield development. Preconstruction planning should include clear objectives and scope, robust risk assessment and a detailed project plan. To craft a suitable risk management plan, the project team may need additional consultants specializing in environmental and regulatory planning for construction on untouched land.

Construction management software can help mitigate risks before and during construction by facilitating stakeholder communication, scheduling work and required assessments and detailed oversight of all activities. 

Integrated technology solutions that connect the field to the office allow project managers detailed insight into work performance and greenfield site conditions, helping them foresee potential issues requiring extra attention to keep the project on budget and schedule.

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Capturing the Potential of Greenfield Building

Greenfield development presents opportunities and challenges for both construction companies and developers. Companies can improve greenfield project outcomes with thorough preconstruction planning, conducting a comprehensive risk assessment and using technology to enhance communication and decision-making when it's time to start building.

Leveraging undeveloped land’s flexibility and creative potential can help companies build innovative, sustainable projects that meet modern needs while minimizing environmental and community impacts.

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