Download SusCon Milano

An Agenda for Sustainable
Construction in Europe
Utilities Management and Sustainability
14 June 2002, Milano IT
Olavi Tupamäki
Villa Real Ltd/SA
Merivalkama 12
FIN-02320 Espoo Finland
tel +358 9 802 3667
fax +358 9 802 3610
http://www.villareal.fi
[email protected]
Avenue Louise 65
B-1050 Bruxelles Belgique
tel +32 2 535 7845
fax +32 2 535 7700
Construction and CREC (1)
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In advanced European vocabulary "construction" is considered to cover
the entire value chain of develop/own, design, manufacture, construct,
recycle a building, infrastructure or other constructed assets.
Today in Finland and elsewhere, a new expression Construction and
Real Estate Cluster - CREC has been taken to use to cover all activities
directly related to construction and real estate (buildings, infrastructure
and other facilities = 60-70% of the national wealth). Compared to the
above, CREC covers the whole life of a building, hence additional
activities concern running the building, which more often is done by
facilities management.
A reason to this approach is the fact that major contractors are moving
from plain construction towards taking care of the building/facility for its
whole life. Also public-private partnership projects (BOOT, PFI; toll
roads & bridges, schools, prisons etc) require this approach. And any
sustainable construction consideration requires this!
Construction and CREC (2)
Construction and Real Estate Cluster CREC 2000 Finland
38 GEUR = 30% * GDP
Exports &
other intl
22%
Running
45%
Building
Construction
23%
Infrastructure
Construction
10%
While in Finland construction represents 10% of GDP (or 12% if repairs &
refurbishment are counted in), CREC represents 30% of the same
GDP. Accordingly, in the EU construction represents 11% of the total
GDP, and CREC nearly 30% of the same GDP!
Construction and CREC (3)
CREC Running Costs 2000 Finland
17 GEUR
Repairs &
refurbishment
16%
Other
5%
Administration
11% General
6%
Heating
17%
Maintenace
15%
Outdoor areas
4%
Cleaning &
waste
14%
Water
5%
Electricity
7%
Here it can be seen that in Finland heating (17%), repairs & refurbishment
(16%), maintenance (15%) and cleaning & waste (14%) are the highest
cost activities.
What is Sustainable Development?
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“Sustainable development is a matter of satisfying the
needs of present generations without compromising the
ability of future generations to fulfil their own needs”
[Brundtland report, “Our Common Future”, 1987]
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Sustainable development means sustainability not only
ecologically (= environmentally) and economically but also
socially and culturally.
Lately there is talk in the EU and UN about the three pillars of
sustainable development. For not to forget cultural aspects, they
should read economic, environmental and societal (= social,
cultural, ethical etc) development.
As per Rio 1992, countries should prepare national strategies on
sustainable development in 2002 latest. Only few countries have
provided something meaningful (SE, DK, DE, AT, GB).
What is Sustainable Construction?
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Sustainable construction has not been satisfactorily defined so
far. CIB W82 (OT a member) has proposed the following
definition 1998: "The creation and responsible management
of a healthy built environment based on resource-efficient
and ecological principles". A later programme document
“Agenda 21 on Sustainable Construction” (CIB Report
Publication 237, 1999) repeats this definition.
This definition is not satisfactory, as it leaves out economic and
societal issues completely!
CIB = International Council for Research and Innovation in Building and Construction
What could be sustainable construction?
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The ways in which built structures are procured and erected,
used and operated, maintained and repaired, modernised and
rehabilitated, and finally dismantled (and reused) or demolished
(and recycled), constitute the complete cycle of sustainable
construction activities.
Minimise the use of materials, energy and water and mobility.
(NL: factor 20).
Building products should, as far as possible, be reusable and
materials recyclable. Design for long service life (and durability)
is superior to design for reusability. Reusability is superior to
recycling, and recycling is superior to waste disposal.
In sustainable construction, reusability and ease of changeability
are necessary product properties, in particular for modular
products and systems with different service lives.
What are LCA and LCC (or WLC)?
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Derived from ISO 14040: In construction, environmental life
cycle assessment - LCA is for assessing the total
environmental impact associated with a product's
manufacture, use and disposal and with all actions in relation to
the construction and use of a building or another constructed
facility. LCA does not address the economic or social aspects
Derived from ISO 15686: Life cycle costing - LCC is a technique
which enables comparative cost assessments to be made over
a specified period of time, taking into account all relevant
economic factors both in terms of initial capital costs and future
operational costs. [UK expression Whole life costing - WLC is gaining some
support separating Life Cycle - LC from Whole Life - WL: WL can cover several
different (usage etc) LCs of a building; also the LCs of various replaceable
components/systems are much shorter than the WL of a building.]
Competitiveness of the Construction
Industry - Sustainable Construction (1)
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In 1997, the EC DG Enterprise published a document
“Competitiveness of the Construction Industry”. Since that
time several working groups have been actively carrying forward
studies on various important topics. They are usually tripartite
groups with participants from the Commission, member states
and industries.
The most important one is the working group for Sustainable
Construction (OT a member). In June 2001 this industry-led
(FIEC) working group published a report titled “An Agenda for
Sustainable Construction in Europe”. In this report the earliermentioned topics have been recognised, yet not all properly
honoured. This report (a “non-paper”) has been sent to the
member states.
Total report see www.fiec.org.
Competitiveness of the Construction
Industry - Sustainable Construction (2)
The report’s recommendations include the following:
 All member states and accession countries to draw up and
publish programmes for “sustainable construction”.
Within the EU, Finland, Germany, Ireland, Luxembourg, the
Netherlands and the UK have such papers of various qualities.
 Carry out a feasibility study to examine the extent to which eco
efficiency can be increased with the perspective of raising it by a
factor of 4 or, over a much longer time frame, by 10.
Establish guidelines that will lead to LCA and LCC becoming
normal standard procedures, and make such assessments
mandatory for public works valued above a given threshold.
Competitiveness of the Construction
Industry - Sustainable Construction (3)
 Clients, especially public clients, must take the lead in promoting
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sustainability in construction and the built environment.
Study the advantages and disadvantages of awarding
construction contracts on the basis of “concessions” and
“facilities management” (BOOT, PFI, public-private partnership).
Develop a system of life cycle costs performance indicators.
A European project CRISP led by CSTB is working on this.
 Raise the awareness of the general public.
 Organise annual competitions for “flagship sustainable
construction projects” in the member states and the accession
countries.
Competitiveness of the Construction
Industry - Sustainable Construction (4)
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A new task group (OT a member) was established last autumn
to "Draw up recommendations and guidelines on Whole Life
Costing (WLC) of construction aimed at improving the
sustainability of the built environment”. The group tries to
find models for practical application of sustainable construction
based on Net Present Value – NPV of economic and
environmental factors.
This group again is industry-led, European Construction Industry
Federation - FIEC and Architects’ Council of Europe - ACE are
running the action.
Competitiveness of the Construction
Industry - Sustainable Construction (5)
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NPV = Net Present Value of the accumulated future costs and
revenues over a certain period of time, eg 50 years, at an
agreed discount rate(s), eg 6% pa, dependant on prevailing
interest and inflation rates.
NPV is calculated according to the following formula, and can be
done with MS Excel (up to 29 years only!).
N
NPV = å
Ct
t =0 (1+ i )
t
Competitiveness of the Construction
Industry - Sustainable Construction (6)
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Societal factors (social, cultural, ethical etc) were unfortunately
left out, although they obviously are important. Later on, it also
seems to be that the group tries to calculate a total = LCC
(money) + LCA (scoring points)! No existing related software
gives any proper solution to this equation.
[Yet, here it is my intention to study the suitability of the
newest software for multi-objectives and multi-criteria
decision making using Monte-Carlo simulation
(@Risk, Crystal Ball) and decision trees (Precision Tree,
Logical Decisions).]
[Finish - Thank you]