NZ Business + Management

CONSTRUCTI­NG OUR CIRCULAR ECONOMY

THE EMERGING CIRCULAR ECONOMY IS TRANSFORMI­NG THE WAY WE BUILD. FIRMS THAT EMBRACE THIS APPROACH WILL COME OUT ON TOP IN A HIGHLY COMPETITIV­E SECTOR, WRITES ANDY KENWORTHY.

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The emerging circular economy is transformi­ng the way we build. Firms that embrace this approach will come out on top.

Anyone who’s ever been on a building site notices how much gets thrown away. Nearly every project starts with some form of demolition or clearance. There’s earth moving, removal of unwanted buildings and infrastruc­ture, as well as discarded fittings and fixtures. Some waste is inevitable. Old materials may break while being deconstruc­ted. Even the most experience­d profession­als can’t be exact about the materials they will need. Most of it comes in standard sizes and packages that rarely completely match requiremen­ts.

Some materials fail. Packaging accumulate­s. There are also the more obvious mistakes. Materials left out to spoil. Tools and materials destroyed by misuse. Ordering the wrong stuff and never getting round to sending it back.

There are the myriad of new disposable bits of kit. Collated screw packs, nail-gun cartridge strips, tubes, sachets and other innovation­s speed up the work, but add to the rubbish.

Some of this waste is hard to deal with. Cement and glue encrusted packages, paint splattered tins – they can all be hard to separate, even if time is available. Some of it is toxic.

Traditiona­lly, labour costs have formed a high proportion of overall costs in constructi­on. This has helped drive a mentality that there isn’t time to take the care to keep waste to a minimum. I remember my teenage summer job in the late 1980s. I cleaned up after tradies who were constructi­ng blocks of flats. Everything got piled two stories high and then landfilled. Thankfully, the sites I see nowadays are somewhat different. Health and safety considerat­ions and cost calculatio­ns have moved on. Material and landfill prices are rising. There’s more incentive to cut waste and deal with it more appropriat­ely.

But constructi­on and demolition waste still represents around half of what's going into New Zealand’s landfills. The recent building boom and population pressure will do nothing to stem this flow.

A recent AUT study found that in the constructi­on of an average Auckland house selling for $828,000, $100,000 is wasted. This includes $31,000 of materials. It includes labour inefficien­cies like repeating incorrect work.

Think of the margins savvy constructi­on firms could open up if they get that sorted!

An average of 2,000kg of timber waste and 700kg of plasterboa­rd waste occurs in a typical house build. And typically ten percent of ordered building materials are wasted.

THE CIRCULAR SOLUTION

So how can we fix this, and cut the huge cost to our economy and environmen­t? The circular economy provides an approach that could eliminate it almost completely. In a circular economy the lifecycles of all materials are maximised. Their use is optimised. At the end of life all materials are reused.

One of the first steps towards installing this new way of working is to create innovation­s to deal with the more problemati­c constructi­on materials. For example, much of the constructi­on timber we use must is chemically treated. This severely limits reuse of offcuts and deconstruc­ted timber. We need to consider different approaches in cases like this. The circular economy mode of design can help drive the innovation­s we need.

There are simple ways to take up this challenge on the ground right now. We can use of services like Green Gorilla. The company has its own constructi­on waste materials recycling facility.

Diversion services are offered by the likes of Junk Run and Trow Group. They re-distribute materials to communitie­s instead of into landfill. The more we use them, the more effective and efficient they can be.

Regulation may be another way of driving this change. We need to increase the Waste Levy to make it less cost effective to simply bury our lack of care in a hole.

Better informatio­n about product disposal would help too. We need clear labelling stating whether materials can be recycled, and how.

Product Stewardshi­p schemes need to be more widely adopted. A number of Ministry for the Environmen­t-accredited Product Stewardshi­p schemes already operate within the constructi­on sector. Over a quarter of a million tonnes of waste concrete is generated in New Zealand each year. Envirocon turns wet waste concrete into a modular wall system called Interbloc.

Resene’s Paintwise scheme recovers unwanted paint and paint packaging. The Interface Re-entry programme converts old carpet to new carpet. We need more of this.

But ultimately we may need to fundamenta­lly change the way we design and build. A major challenge in minimising constructi­on waste is getting resources on and off sites efficientl­y. Prefabrica­ting modular housing centrally may be one way ahead.

INNOVATION WANTED

We are in a resource constraine­d world. We live in a relatively remote country. We are struggling to provide quality housing for a growing population. We simply can’t afford to keep building in the way that we currently do.

Constructi­on companies that take on this challenge early will have a huge competitiv­e advantage on those that lag behind. And Kiwis who lead innovation­s in this area may find themselves in demand all over the world.

ANDY KENWORTHY IS A WRITER AND COMMUNICAT­IONS STRATEGIST SPECIALISI­NG IN GLOBAL WELLBEING. HE IS THE COMMUNICAT­IONS AND CAMPAIGNS CO- ORDINATOR FOR THE SUSTAINABL­E BUSINESS NETWORK. WWW. SUSTAINABL­E.ORG. NZ

“Constructi­on and demolition waste still represents around half of what's going into New Zealand's landfills.”

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