CIRCULAR ECONOMY

What principles of circular economy can be carried across in to the construction industry?

Reuse, recycling and recovery

Currently many companies are achieving nearly 100% resource reclamation and recovery. The challenge is how the industry can improve the value of materials recycling and recovery

Design for deconstruction

Improving the ease at which buildings can be deconstructed would significantly reduce the energy required in demolition as well as preserving as many of the buildings components to the life cycle of many buildings is shortened by the lack of adaptability to alternative use. There are various examples where design for deconstruction has been successfully implemented.

Product service systems

Product service systems also known as function orientated business models are when a company provides a service rather than the product itself.

Design for multiple use and adaptability

Throughout a buildings life cycle its function is likely to change. Designing a building so it is multifunctional will allow for its life to be extended. The fit out of a building should also allow for flexibility in terms of changing interiors.

Material Passports

The adoption of BIM systems will allow databases to be set up to record all materials and their location in a building. Will allow for easier recycling and monitoring of the embedded material in buildings.

UKCG Survey

A electronic survey was sent around professionals working in the construction sector to gain an insight in to peoples views on the Circular Economy concept in construction

16%

54%

22%

8%

Who took the survey?

Other Contractor 126 Supplier 50 Developer/Client 19

• Almost 300 respondents in 6 weeks

54% Contractors 22% Suppliers 8% Developers

• 65% respondents would like to be

involved with the UKCG moving towards a Circular Economy.

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Breakdown of ‘Other’ Section

Understanding of the concept • 43% of people say they

understand the concept well

• 12 % of people said they have

never heard of it – how do we communicate with this minority?

• 61% of people saying they got to know the concept through industry literature.

• 94% agree that Circular Economy offers an excellent solution to future challenges in resource scarcity

• Clients/Developers had the most positive response to the potential of the circular economy

•89% of clients believe that companies will gain a competitive advantage if they adopt a circular approach

3.6 3.65 3.7 3.75 3.8 3.85 3.9 3.95 4

Developers/Clients

Contractors

Suppliers

Agreement that Circular Economy offers excellent solution to the future challenges in resource efficiency

Average score. A result of above 3 shows agreement and a result below 3 shows disagreement

Implications for the construction industry

• Changes to the model of how we procure and use materials to achieve significant resource efficiency is needed.

• Opportunities for competitive advantage

• Some agreement that Circular Economy is just another word for recycling. There is a need to define the terms which are used.

0 0.5 1 1.5 2 2.5 3 3.5 4

Circular Economy will have a limited impact on the construction industry

The lifecycle of buildings is too long to make circular economy models work inconstruction.

There will be a significant change in the way we source materials in the constructionindustry due to circular economy thinking.

The Circular Economy is just another word for recycling and reusing materials.

Companies who take a circular approach to how they buy and sell products will gaina competitive edge.

We can achieve sufficient resource efficiency without changing the model of how weprocure and use materials.

Average score. A result of above 3 shows agreement and a result below 3 shows disagreement.

69% of people have not heard of a strong business case for the circular economy in construction

There is currently little research on exactly what the barriers are in construction in terms of working out a working business model for buildings with long life's.

There are business models which work effectively for products with a shorter lifespan such as lighting carets etc.

‘Developing clear examples to support a detailed business case will help construction move towards a circular economy‘

Business Model

Which materials are most suited to the circular economy?

The most common answers were:

• Fit out materials/products (1 in 10 respondents mentioned fit out)

• Metals Steel/Aluminium

• Electrical/Lighting

• Short Design Life

• M&E

People were asked what were the materials/products most suitable to the circular economy. Everything was the most common answer amongst a wide range which included many different materials.

‘Easily recoverable, high value materials which can be recycled (not down-cycled) and/or reused’

‘Circular economy is about systems thinking and not taking a 'one size fits all' approach’

‘Most materials and

services could suit the

circular model with

adequate research and

development’

Drivers

0 0.5 1 1.5 2 2.5 3 3.5 4 4.5

Energy saving and environmental protection

Reducing cost

Legislation

Public opinion

Rising prices of resources

Landfill costs

Resource scarcity

Rising prices of resources and resource scarcity are considered to be the most important drivers for the circular economy.

• 77% said rising prices of resources was highly important • 70% said resource scarcity was highly important This shows that there is genuine concern that the price and availability of resources is going to affect the construction industry. Public opinion and legislation considered the least important drivers.

Average score. A result of above 3 shows agreement and a result below 3 shows disagreement

Barriers

3.65 3.7 3.75 3.8 3.85 3.9 3.95 4 4.05 4.1 4.15

Changing business culture – so circularity more widely accepted.

Bringing together supply chain – the need for a more holistic approach across the supply chain – including

architects and product designers.

Financial issues – cost model needs to support re-using materials not buying new.

Technical issues – market still developing and need more products/solutions – currently easier to down

cycle.

Current policy climate - contractors build according tocontract

What are the main barriers to the implementation of the circular economy? UKCG identified the main barriers and the relevance of these barriers was questioned in the survey.

• All barriers considered important.

• Technical issues considered the least important

• 42% considered the current policy climate to be a highly important barrier. Showing there could be an issue with contracts preventing circularity

• A more holistic approach across the supply chain also considered highly important.

Average score. A result of above 3 shows agreement and a result below 3 shows disagreement

Next Steps

0 0.5 1 1.5 2 2.5 3 3.5 4 4.5 5

Strong leadership from industry to push forward changes inresource efficiency

Increasing  government taxes such as landfill costs andaggregates levy

Research and Development in how cost models would work inconstruction

Respondents were asked what they thought were the most important next steps.

48% gave strong leadership from industry a score of 5

UKCG has the opportunity to push forward the Circular Economy

Average score. A result of above 3 shows agreement and a result below 3 shows disagreement

What should be the next steps for UKCG?

‘Must be supported by the government, but not through higher taxes, but incentives’

‘Clients need to lead from the outset of a project’

‘Designers and architects start designing and specifying with a circular economy in mind’

‘Each part of the supply chain 'ecosystem' needs to take responsibility and get away from blaming the client or designer’

‘Detailed study of the various elements within construction and their suitability for re-use’

‘The drive to change must be comprehensive and cohesive’

‘Developing clear examples to support a detailed business case’

What were the general themes of comments?

Education/Communication

• Better understanding across the sector of the benefits

• Working case studies/business models

• Peer reviewed research

Influencing Clients and Decision Makers

• Showing financial benefits

• Reducing risks to investors and contractors of using new and innovative technologies

Support from Government

• Legislation and grants/subsidies

• Incentives rather than higher taxes

Design Specialists

• More engagement with architects and designers to design buildings which suit a circular approach

Co-operation

• Clients contractors and suppliers to work together to achieve better resource efficiency

Conclusions

• There is a broad support for moving towards the circular economy throughout the industry

• There is a communication problem throughout the supply chain, a more holistic approach required

• The most important barrier highlighted was the current policy climate in which contractors must build to contracts.

• Clearer business models must be developed and the benefits of a circular approach should be shown with working examples.

• Industry can take a leading role in supporting a shift to a more circular economy

Our next steps

Define what the Circular Economy means for us

A mission statement that our members can agree on, regarding what it means for UKCG members and what we will do to promote the concepts.

Communication and Engagement

Ideas include developing training modules for the supply chain school on the circular economy, and meetings with key construction clients (early 2015)

Meeting with supply chain partners to establish answers to two key questions:

How products/service offer aligns with the circular economy

How could it work – what challenges and barriers are there and how might they be overcome?

Developing business models and business case

Explore and develop materials passport concept (#LOOP) proposed through UK Green Building Council Future Leaders Programme (see: Project 5 in http://tinyurl.com/p9lc4a9)

Initial sectors identified to engage with:

Raised Access Flooring

Structural Steel

Curtain Walling

In Situ Concrete

Vertical Transportation

Roofing Sector

Cabling

Partitions