THE JOURNAL OF THE AUSTRALIAN INSTITUTE OF QUANTITY SURVEYORS
FEATURING
THE GREEN ISSUE
THE FUTURE – IT’S ELECTRIFYING TURNING OUR CITIES ELECTRIC
INSURING AGAINST CLIMATE CHANGE
THE IMPACT OF CLIMATE CHANGE ON THE INSURANCE INDUSTRY
ONLY CONNECT
AN OVERVIEW OF AUSTRALIA’S PREMIER SUSTAINABILITY CONFERENCE: GREEN CITIES 2015
JUNE 2015
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10
INSIGHT THE FUTURE IT’S ELECTRIFYING
This global environmental crisis is affecting the urban societies everywhere. However, the building and construction industry are looking for a solution. One interesting possibility being considered is whether we can turn our cities electric.
28
SPECIAL ONLY CONNECT
The theme for this year’s Green Cities was ‘connect’ – and it proved a chance to connect both physically, through incredible networking opportunities, and intellectually – to new ideas that will help us move beyond business as usual.
Managing Editor Jenna Harfield Executive Editor Emma Marshall Design Nose to Tail Chief Executive Officer Michael Manikas
JUN 2015
02 07 08 24 REGULARS 26 CONTENTS
Contributions Articles relevant to construction economics and related subjects, pictorial material, letters etc are welcome. No responsibility is accepted for unsolicited material. All contributions should be addressed to the editor: Australian Institute of Quantity Surveyors, National Office, Level 6, 65 York Street, Sydney NSW 2000. Tel: (02) 9262 1822 Fax: (02) 9279 1400 Email: editor@buildingeconomist.com.au www.buildingeconomist.com.au
Cover: 41X, Exhibition Street,Melbourne, Victoria.
SNAP SHOT
FROM THE CEO
NUTS & BOLTS
QS KIT
SOCIAL
The Institute does not, as a body, hold itself responsible for statements made and opinions expressed in this Journal. All rights of translation and reproduction are reserved. Subscriptions Australian Institute of Quantity Surveyors, National Office, Level 6, 65 York Street,Sydney NSW 2000. Tel: (02) 9262 1822 Fax (02) 9279 1400 Published quarterly $110.00 (including GST) annual subscription (Airmail rates on request). Visit our website www.aiqs.com.au and order your annual subscription online.
Circulation 1000 print copies plus an online readership of over 18,000 and growing General and Advertising Australian Institute of Quantity Surveyors, Suite 303, Level 3, 70 Pitt St Sydney, NSW, 2000 AUSTRALIA Tel: (02) 9262 1822 Fax (02) 9279 1400 Email: editor@buildingeconomist.com.au Artwork as a PDF is preferred. ISSN 0007-3431 Designed and printed for the Australian Institute of Quantity Surveyors (ACN 008 485 809) by Nose to Tail Pty Ltd
THE BUILDING ECONOMIST – JUNE 2015 – 1
SNAPSHOT
6 STARS FOR 50,000 PEOPLE COMMUNITY Stockland’s Caloundra South development in Queensland,
The development will also include the installation of the most
which will eventually be home to 50,000 people, has been
advanced water reticulation, filtration, storage and treatment
awarded a 6 Star Green Star – Communities rating by the
system ever installed in any Australian city, which will recycle
Green Building Council of Australia.
water, minimise run-off and ensure the protection of the
The largest mixed-use development ever undertaken under single ownership in Australia, the Caloundra South, it will include nine separate sporting grounds, numerous parks and playgrounds and a ‘people’s place’ and central park, alongside a new town centre.
2 – THE BUILDING ECONOMIST – JUNE 2015
nearby Pumicestone Passage, as well as new habitats for rare and endangered flora and fauna species.
SNAPSHOT
NEW CEO APPOINTED FOR WORLD GBC Terri Wills has been appointed as the new Chief
Ms Wills is replacing former CEO Jane Henley,
Executive Officer of the World Green Building
and will now lead the WorldGBC’s initiatives to
Council (WorldGBC) from her current role as
support its members, promote collaboration
Director of Global Initiatives with the C40 Cities
and innovation, and play an advocacy and policy
Climate Leadership Group.
role to accelerate global change.
Previous roles held by Ms Wills include serving
Terri Wills will start the role on June 1.
as the London City Director for the Clinton Climate Initiative, working with the Mayor of London’s Office to scale up the award-winning RE:FIT retrofit program, and working with the Government of Ontario on clean technology development.
TRIPADVISOR GREENLEADERS PROGRAM REACHES AUSTRALIA AND NZ Those looking for hotels and B&Bs with environmentally friendly
The GreenLeaders program was developed with the United
practices in Australia and New Zealand can now find them on
Nations Environment Program, EcoTourism Australia and
TripAdvisor thanks to their GreenLeaders program.
EarthCheck and now includes 8,000 properties worldwide on
TripAdvisor users can find around 170 properties in Australia and
the list.
NZ, and can check their green practices such as recycling, linen and towel re-use, and green roofs.
THE BUILDING ECONOMIST – JUNE 2015 – 3
SNAPSHOT IN BRIEF
ADELAIDE TO WELCOME NEW FIVE STAR LUXURY HOTEL Adelaide is set to welcome its first five star luxury hotel in around 30 years, when construction begins in 2017 on the $140 million Sofitel hotel. Situated on Currie Street, the development will include extensive leisure and business facilities, four bars, swimming pool, health and fitness centre, restaurant and 250 rooms and suites. A further 80 apartments will also be built over the top eight levels. Expected to open in 2018, the construction will create hundreds of jobs, and the hotel itself providing 150 ongoing positions.
UK COFFEE CHAIN OPEN FIRST “ZERO ENERGY” SHOP amount of energy required to control building
NEW PARTNERSHIP BETWEEN GBCA AND ONLINE SCHOOL ANNOUNCED
temperature will come from solar PV cells
A new partnership between the Green Building Council of Australia (GBCA) and
embedded in a special curved roof.
the Australian Supply Chain Sustainability School is expected to fast-track the
Popular UK coffee chain, Costa Coffee, have opened its first zero energy building in Telford that will seat 58 people inside and 20 outside. It took 13 weeks to build and achieved its zero energy through passive ventilation, and the low
The new store at Wrekin Retail Park also
industry’s green skills.
features an FSC sourced timber frame, an
This national online learning forum is being funded by the state governments of
insulated facade using soft wood, and an under-
New South Wales, Victoria and Queensland and has been designed to help the
floor heating system.
construction sector to expand its sustainability knowledge.
4 – THE BUILDING ECONOMIST – JUNE 2015
The Infinite Value Awards are back in 2015 and Nominations are NOW OPEN! Are you working on an outstanding project? Do you work with someone who goes above and beyond in their daily job?
This is your opportunity to highlight the successes of your industry by nominating them in one of the 11 Infinite Value Awards Categories. For more information and to make your 2015 Infinite Value Awards nomination head to the website www.infinitevalueawards.com
Entries are now open in the following Infinite Value Award Categories:
Future Leader Award
Engineering Excellence Award
Lifetime Quantity Surveying Contribution Award Advocacy Award
Research and Teaching Award
Women in Construction Award
Government Project Award
Regional Project Award
Sustainable / Green Project Award
Innovation Project Award
To enter visit
www.infinitevalueawards.com
Architectural Excellence Award
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FROM THE CEO
THE GREEN ISSUE
LAST MONTH THE AUSTR ALIAN FEDER AL GOVERNMENT HANDED DOWN ITS LAST BUDGET PRIOR TO THE NEXT AUSTR ALIAN ELECTION. IT ’S SAFE TO SAY IT WAS ALL ABOUT SPENDING AND EXPANDING THE ECONOMY AFTER THE PREVIOUS TOUGH BUDGET, WHICH WAS HIGHLY CRITICISED. The construction sector was a major focus
infrastructure plan (NSW)
of 37.9 percent from P219.9 billion last year.
of the budget, due to the decline in the
• $6.7 billion Bruce Highway upgrade (Qld)
Of this total, P185.8 billion will be allotted for
income from the slowing mining sector.
• $500 million Ballarat to Stawell Western
the completion of all national roads by 2016
Both levels of the industry were rewarded,
Highway duplication (Vic)
starting at the bottom with incentives for
• $925 million Perth Freight Link (WA)
small businesses - which will help boost the
• $500 million Darlington Interchange (SA)
300,000 small businesses in the building and
• $400 million Midland Highway (Tas)
construction sector. This has been done by introducing allowances for small businesses to immediately claim 100% tax deduction on plant and machinery under $20,000. Included in the $5.5 billion ‘Growing jobs and
There are also the major Public-Private Partnership (PPP) projects supported by the National Government in the offing,
IF THESE INCENTIVES ARE
like the Tarlac-Pangasinan-La Union Toll
COMBINED WITH FURTHER LAND
Expressway, the Daang Hari-SLEX Link
RELEASES AND RATIONALISATION
Project, the NLEX-SLEX Link Connector, the
OF THE PLANNING SYSTEM, THE
small business package’ were tax breaks as
BUILDING AND CONSTRUCTION
follows for small businesses:
SECTOR IN AUSTRALIA IS SET FOR
• Incorporated businesses (i.e. companies)
and all bridges along national roads by 2015.
A VERY PROSPEROUS FUTURE.
Cavite-Laguna Expressway (CALAX), the Laguna Lakeshore Expressway Dike (LLED), and the NAIA Expressway. This theme is also echoed in our Infinite Value Awards for 2015 in which we are
with a turnover of less than $2 million will
Elsewhere around the globe there is continued
receive a 1.5 percent cut in the company
aiming to highlight the connected world that
investment in infrastructure of all types. In
tax rate from 30 percent to 28.5 percent.
we live in, celebrating infrastructure and the
Dubai last month Dubai Airports confirmed
part it plays in our increasingly accessible
that construction is expected to begin later
partnerships etc.), which include the
global community. Nominations are now
this year on the expansion of Al Maktoum
majority of tradespeople and many sole
open and we encourage you to enter so you
International at Dubai World Central’s (DWC’s)
traders within the construction sector,
can share in the accolades of our previous
existing passenger terminal, which will boost
will receive a 5.0 percent ‘tax discount’ on
esteemed winners. Visit the website at
the current capacity of 6 million passengers a
tax payable on their business income.
infinitevalueawards.com to lodge your
year to 26 million.
nominations now.
On the other end of the scale there was an
In Doha approximately 20% of the tunnels for
increased focus on federal infrastructure
Good Luck!
the $36b Metro project have been excavated.
• Unincorporated businesses (sole traders,
commitments, which include: • $5 billion for ports, rail, pipes and
and delivery of the first stage of their
power stations in a new Northern
ambitious rail project with the final total
Australia fund
length of tracks expected to be 2,135km.
• $3 billion still set aside for Melbourne’s East-West Link, (despite Labor government opposing it) • $5.6 billion Pacific Highway duplication (NSW) • $2.9 billion Western Sydney
Regards,
Oman is well underway with the planning
In the Philippines in the 2015 National Budget, the Department of Public Works
Michael Manikas
and Highways (DPWH) received the second
CEO
largest allocation and the highest year-on-
The Australian Institute of Quantity
year increase—P303.2 billion or an increase
Surveyors
THE BUILDING ECONOMIST – JUNE 2015 – 7
NUTS AND BOLTS
CO2 EMISSIONS
A global view of the world’s biggest polluters.
REST OF WORLD IRAN — 1.57% CANADA — 1.57% KOREA — 1.75% GERMANY — 2.23% INDONESIA — 2.31% JAPAN — 3.61% BRAZIL — 4.17% RUSSIAN FEDERATION — 5.7% INDIA — 5.7% USA — 14.69% CHINA — 23.43% 8 – THE BUILDING ECONOMIST – JUNE 2015
CO2 EMISSIONS PER $GDP 2.5
Kg of CO 2 per $GDP
2.0
1.5
1.0
0.5
0
1990
Ukraine
1991
1992 China
1993
1994
Russia
1995
1996
South Africa
1997
1998 Belarus
1999
2000
2001
Bulgaria
2002 Poland
2003
2004
2005
Saudi Arabia
2006 Iran
2007
2008
Romania
WORLD CO2 PRODUCTION BY SOURCE 9000
8000
Metric Tonnes of Carbon
7000 6000 5000 4000 3000 2000 1000 0
1850
Gas Fuel
1900 Liquid Fuel
Solid Fuel
1950 Cement
2000
Gas Flaring
CO2 EMISSIONS BY SECTOR 35000
Metric Tonnes of Carbon
30000 25000 20000 15000 10000 5000 0 1971
1975
Electricity and Heat
1979
1983
Other Energy Industries
1987
1991
Manufacturing Industries and Construction
1995
1999 Transport
2003 Residential
THE BUILDING ECONOMIST – JUNE 2015 – 9
2008 Other
INSIGHT
THE FUTURE IT’S ELECTRIFYING
WE’RE ALMOST HALF WAY THROUGH 2015 AND EXCITEMENT CONTINUES TO BUILD ON WHAT THE FUTURE HOLDS FOR THE BUILDING AND CONSTRUCTION INDUSTRY. THERE IS CONSTANTLY SOMETHING NEW ON THE HORIZON AND FOR 2015, THERE ARE SOME EXCITING NEW TRENDS EMERGING. ONE THAT IS GAINING MOMENTUM IS TURNING OUR WORLD ELECTRIC. BE TAKES A LOOK AT THE POWER BEHIND THIS NEW WAY OF LIVING. 10 – THE BUILDING ECONOMIST – JUNE 2015
THE BUILDING ECONOMIST – JUNE 2015 – 11
INSIGHT Each day, each week, each month, a new possibility for our
improving air quality significantly. It will be an attractive place to
cities is discussed by the building and construction industry.
live and work but we need to commit to this future now”.
And it needs to be, as many of the world’s major cities are under pressure. Around the world, it has been reported that around 7 million people died in 2012 due to the effects of air pollution. In fact, 1600 cities across the globe have reported problems with air
“If London and other cities committed to becoming all-electric by 2035 that would provide the direction to significantly improve our quality of life. We’ve got twenty years to make this a reality.” So how does a city become all-electric? Los Angeles has long
pollution. London is straining under the weight of air and noise pollution, and recent statistics suggest that 4,300 deaths are caused by air pollution in the capital city each year. Under pressure from the European Union, London is struggling to bring down the levels
been one of the worst cities for air quality in America, and most recently, after committing to reducing greenhouse gas emissions in the city by 90,000 tonnes, LA has turned to electric when it comes to its vehicles.
of nitrogen dioxide (NO2) and has even seen legal action taken
Environment LA says the city now has 50,000 alternative fuel
against the United Kingdom for failing to reach the reduced levels
vehicles – including some that run off hydrogen, electricity,
set by the EU.
and compressed gas – and has developed over 20 locations to
Taken to court last year by campaign group ClientEarth, their lawyer, Alan Andrews, said, “The UK has some of the worst NO2 levels in Europe, they’re a national disgrace.” “London has a particular problem, in some streets it is three or four times above the legal limits.”
dispense the fuel and charging points throughout the city, with even more planned. Battery powered buses zip around the city and the electric rail network have provided great public transport options, whilst over a dozen new shops selling electric bikes have popped up over the past twelve months. With transport shown to contribute 17 percent of Australia’s
On the other side of the world, Australia has seen the number of
Greenhouse Gas Emissions, electric powered forms of transport
deaths due to air pollution rise significantly – almost doubling
could also be part of the powerful solution for this country.
in over five years – at an economic cost of $5.8 billion per year.
Transport sustainability researcher, David Banister, has
According to Environmental Justice Australia, these 3,000 deaths
found light rail, buses and electric rail to be some of the most
a year are preventable.
sustainable transport for Australia, and Western Australia is
“Australia lacks an effective system of regulation for air pollution.
racing to become the first state to create an electric car highway.
The current system is based on a completely unsatisfactory
There are currently about 1,000 electric vehicles on the road
arrangement that leaves important standards to protect health
across Australia, compared to 180,000 in the United States, and
to be set by complex intergovernmental arrangements, involving
according to Stephen Moir, of WA’s Motor Trade Association, we
commonwealth, state and territory governments. This system is
need to find alternatives to petrol run cars in the long term.
failing to adequately protect public health.” According to the World Health Organisation, some of the worst countries in the world for air pollution include Qatar, United Arab Emirates, India and Egypt. Growing numbers of cars, planes, construction, power plants and factories are literally chocking the people that live there. This global environmental crisis is affecting the urban societies everywhere. However, the building and construction industry are looking for a solution. One interesting possibility being considered is whether we can turn our cities electric. Electricity presents an opportunity to not only improve air quality but also reduce noise pollution and carbon emissions. In fact, electricity is considered by many to be the fuel of the future, and allow us to continue with our daily lives with minimum impact on the environment. UK based, WSP associate Barny Evans said, “The all-electric city will reduce carbon emissions and noise pollution whilst
12 – THE BUILDING ECONOMIST – JUNE 2015
“I think it would be great if Western Australia could lead the nation and build the first electric highway,” said Stephen. “Sales (of EVs) have slowed over the last 12 months and I think that’s in part in relation to the fact that they are still expensive, but with pricing of fuel still being an unknown quantity, the future is looking good,” he concludes. When considering how London can really turn things around and make an actual impressive improvement in air quality, WSP’s Barny Evans, also recognises the need to not only focus on electric forms of transport, but also look a bit wider.
THE BUILDING ECONOMIST – JUNE 2015 – 13
INSIGHT “We will need more efficient buildings, whilst others will have to be retro-fitted with electric heating. We will also need a system that will quickly and affordably allow most Londoners access to electric vehicles and their charging points.” In their report, “Powering Ahead: Fast-track to an all electric city”, WSP also suggested that all new houses and offices to be all-electric from 2018. Could this really work? Maybe it is time for the Australian property industry to take a closer look at how our buildings could work. Now, as an industry, we will have to take a fresh perspective on how to accelerate the current possible social and technical changes on the cards for our cities and transition into an electric future. We can’t ignore what is in the air, and must find the effective response to the urgent environmental and economic challenges that air pollution has presented. It might be the time to take a deep breath and take the plunge.
14 – THE BUILDING ECONOMIST – JUNE 2015
PEOPLE
INSURING AGAINST CLIMATE CHANGE
FROM FLOODS TO CYCLONES, AUSTR ALIA HAS HAD ITS FAIR SHARE OF WEATHER CATASTROPHES OVER THE PAST FEW YEARS, ULTIMATELY COSTING THE AUSTR ALIAN INSUR ANCE BUSINESS BILLIONS OF DOLLARS. COULD CLIMATE CHANGE MAKE BUILDING, AND LIVING, IN AUSTR ALIA RISKY BUSINESS? WHAT CAN THE BUILDING AND CONSTRUCTION INDUSTRY DO TO TURN THIS AROUND AND MAKE SURE INSUR ANCE PREMIUMS DON’T GO THROUGH THE ROOF WHEN THE ROOF COMES OFF? 16 – THE BUILDING ECONOMIST – JUNE 2015
Rob Whelan, Insurance Council of Australia’s Executive Director & CEO
WHO BETTER TO ASK THAN THE INSUR ANCE COUNCIL OF AUSTR ALIA’S EXECUTIVE DIRECTOR & CEO, ROB WHELAN. BE CHATS TO ROB ABOUT THE IMPACT OF CLIMATE CHANGE ON THE INSUR ANCE INDUSTRY AND WHAT THIS MEANS FOR EVERYONE ELSE. The insurance industry in Australia has been busy. Over the past
Legal & General and Colonial Mutual, Rob is now heading up the
few months alone, freak storms have battered New South Wales
peak industry body for Australian general insurers.
and caused hundreds and thousands of dollars of damage, and a huge headache for the communities and their insurers.
ICA members account for more than 90 per cent of all insurance business transacted in Australia by authorised insurers,
Rob Whelan recently stood up in front of hundreds of building
and includes insurance and reinsurance companies, Lloyd’s
and construction professionals at the Green Cities conference
underwriters, intermediaries and agencies from both the private
in Melbourne and laid bare the real impact of climate change
and public sectors. At the forefront of the industry, Rob knows
on yet another industry. As the Executive Director & CEO of the
that the insurance sector is keeping a firm eye on climate
Insurance Council of Australia (ICA), Rob is perfectly positioned
change. However, he is quick to point out that whilst aware of the
to see how climate change is affecting our country, and
climate change debate, there are a lot of other factors that have
everyone in it.
influenced weather related claims over the past few decades.
With many years of experience as a senior manager in a diverse
“The Insurance Council keeps a comprehensive database
range of roles within the insurance and banking sectors, which
that lists catastrophes declared by the ICA over the past 40
include managing the corporate affairs and policy functions in
years. This has been analysed to determine whether events are
major insurers AAMI and Suncorp, as well as extensive business
becoming more intense or frequent,” says Rob.
management experience in broader financial services with AMP,
THE BUILDING ECONOMIST – JUNE 2015 – 17
PEOPLE “While undoubtedly present, any climate change signal that
Natural disasters have been particularly costly for Queensland,
exists is being overwhelmed by the losses directly attributable
with the state running up at least $6.5 billion in insurance losses
to population changes, building costs and codes and land
in the past 10 years as a result of floods, cyclones, hailstorms
use planning. It is not so much that there are more frequent
and storms declared as catastrophes by the ICA. In the past
storms or more violent storms in Australia, but that far more
20 years, the Insurance Council has declared 12 cyclones as
infrastructure has been built in coastal regions that are
catastrophes, with these causing combined insurance losses
vulnerable to extreme weather.”
of $2.32 billion. The biggest event, Cyclone Yasi in 2011, caused
Considering that within 25 years, more than half of the world’s population is expected to live within 100km of the coast, there needs to be more awareness from Government that it is not just
$1.4 billion in insurance losses, and flood damage caused by exCyclone Oswald in 2013 led to a further $1.1 billion in losses in Queensland and NSW.
the infrastructure that is becoming more vulnerable, but the Australian population too.
“WHILE UNDOUBTEDLY PRESENT, ANY CLIMATE CHANGE SIGNAL THAT EXISTS IS BEING OVERWHELMED BY THE LOSSES DIRECTLY ATTRIBUTABLE TO POPULATION CHANGES, BUILDING COSTS AND CODES AND LAND USE PLANNING. IT IS NOT SO MUCH THAT THERE ARE MORE FREQUENT STORMS OR MORE VIOLENT STORMS IN AUSTR ALIA, BUT THAT FAR MORE INFR ASTRUCTURE HAS BEEN BUILT IN COASTAL REGIONS THAT ARE VULNER ABLE TO EXTREME WEATHER.”
“The risks from climate change are exacerbated by socio-
“The driver of this is that more and bigger buildings are being
demographic factors such as population growth and the rise
built in disaster-prone areas, such as cyclone-vulnerable regions
of mega-cities, creating an urgent need for governments to
and flood plains,” explains Rob.
strengthen their societies’ disaster risk resilience.
“Over the past few decades coastal regions, in particular the east
It is the role of governments to protect communities from
coast, have experienced intense development and population
known and anticipated hazards such as floods, cyclones, storms
growth, much of it in places that are vulnerable to flooding and
and bushfires, and make appropriate planning decisions to
tropical storms. This is compounded by the fact the properties
account for current and anticipated extreme weather events. All
being built are not always being constructed to be resilient
governments need to adapt to these risks, and their approach
and durable in the face of extreme weather. Homes are built to
needs to combine risk prevention, risk mitigation and risk
protect the occupants but they are not generally being built to
transfer measures.”
last. This creates safe but vulnerable buildings.”
The current situation is already worrying when it comes to
To better understand the resilience of strata-title properties so
crunching the numbers. Over the past decade, insurers have paid
prevalent in North Queensland, which can be subject to regular
out more than $10.5 billion for claims relating to ICA-declared
cyclone damage, the Insurance Council commissioned an
catastrophes including cyclones, floods, storms and bushfires, and
independent study by James Cook University’s Cyclone Testing
tens of millions more have been paid for smaller weather events.
Station. The study found that the age of a property had less
And according to Rob, these events are becoming more expensive.
influence on claims than factors such as water egress from wind-
18 – THE BUILDING ECONOMIST – JUNE 2015
driven rain, and the compounding effect that damage to external elements such as television aerials or guttering could have on
“OVER THE PAST FEW DECADES COASTAL REGIONS, IN PARTICULAR THE EAST COAST, HAVE EXPERIENCED INTENSE DEVELOPMENT AND POPULATION GROWTH, MUCH OF IT IN PLACES THAT ARE VULNER ABLE TO FLOODING AND TROPICAL STORMS. THIS IS COMPOUNDED BY THE FACT THE PROPERTIES BEING BUILT ARE NOT ALWAYS BEING CONSTRUCTED TO BE RESILIENT AND DUR ABLE IN THE FACE OF EXTREME WEATHER. HOMES ARE BUILT TO PROTECT THE OCCUPANTS BUT THEY ARE NOT GENER ALLY BEING BUILT TO LAST. THIS CREATES SAFE BUT VULNER ABLE BUILDINGS.”
buildings (leaving a roof exposed to water and further damage to the interior of a property). More than 80 per cent of claims investigated during the study noted some form of damage from water egress. The study recommended these strata-title properties undergo regular engineering inspections to ensure they were resistant to future extreme weather events. So what does this mean for insurance premiums? With all these issues, including climate change, affecting our buildings, will we now be expected to pay more for our insurance? Not necessarily, says Rob. If action is taken to mitigate the risks, premiums could even be lowered. “Recently, many consumers in Queensland experienced a sharp reduction in premiums in flood-prone areas following the construction of permanent mitigation or improvements to flood mapping availability and accuracy. Premiums for new policies and renewals have been slashed by many insurers in Charleville and St George following the completion of flood mitigation works. And in Roma, an average 45 per cent reduction in insurance premiums is expected following the completion of a flood levee, and in some cases up to 90 per cent for flood risk properties.” What about building green? In the US, a Business Insurance online survey of 315 decision-making executives revealed that only 30% said their coverage includes green buildings. Meanwhile, of those who have green insurance, 32% said they searched themselves for the coverage, and only 28% said a broker advised them to switch to green coverage or add an endorsement for green features. “Green buildings that are resilient to natural hazards and can be proven to suffer less damage are more likely to see this reflected in lower premiums.” There is a role to play for the building and construction industry in supporting the insurance sector according to Rob. So what can we can we do? “Support the insurance industry in pressing governments for better planning laws to ensure new buildings are more capable of withstanding natural disasters without suffering expensive-torepair damage. Building standards need to be revised to improve building resilience.” Through the wind and the rain, and the hail, it might be time to count the real cost of climate change and work together.
THE BUILDING ECONOMIST – JUNE 2015 – 19
PROJECT
ECO-HOUSING FROM THE GROUND UP ECO - FRIENDLY HOUSING IN AUSTR ALIA HAS BOOMED, WITH PEOPLE CHOOSING TO BUILD GREEN OVER OTHER OPTIONS. THERE ARE SO MANY REASONS EVERYONE, FROM MA JOR DEVELOPERS TO MUMS AND DADS, ARE BUILDING GREEN HOMES TO LIVE AND GROW IN. PEOPLE ARE CHOOSING ECO - FRIENDLY HOMES TO SAVE MONEY, TO ENJOY THE HEALTH BENEFITS, AND TO HELP THE ENVIRONMENT. BE TAKES A CLOSER LOOK AT SOME OF THE ECO - FRIENDLY HOUSING IN AUSTR ALIA THAT HAS EVERYONE WANTING TO MOVE IN. 20 – THE BUILDING ECONOMIST – JUNE 2015
ECO-BALANCED
cycle of the home. Lightweight, low maintenance materials and efficient construction methods ensure short term savings and use of environmentally friendly utilities result in decreased utility bills in the long term.
Eco-Balanced is a functional 8 star design, which utilises sustainable design principles and addresses issues such as energy systems, water management and systems integration for optimal operational performance.
The compact nature of each module minimises wasted space, resources and money and each Ecoliv Building is delivered complete as ordered, ready to either connect to existing services or be a totally self-sufficient home.
The Ecoliv Buildings concept is a simple modular design that is easily replicable and very liveable. It can be added to as a client needs change and can be moved with ease if necessary. The EcoBalanced includes the standard modules that can be configured in various ways to include multiple bedrooms, combined utility room, separate bathroom, storage/study rooms that can be added to at any time over the life cycle of the building as needed. The universal design of each Ecoliv home can be adapted to varying needs of the occupants with its standard single level open plan living featuring standard inclusions such as a solar hot water system, solar electricity, 10000 litre water tank configuration and double glazed windows are $2500 per square meter. The contract price of the Eco-Balanced 1 House is $240,000 plus
“DESIGN FEATURES AND ENVIRONMENTALLY- FRIENDLY INCLUSIONS FOR THE ECO BALANCED HOME HAVE FOCUSED ON DELIVERING EFFICIENCY IN ENERGY AND WATER TO BOTH LOWER IMPACT AND COSTS”
GST. This translates to $3463 per square meter. The cost savings of the home are evident during construction and over the life
ENVIRONMENTAL INCLUSIONS
ESTIMATED COST
OPERATIONAL SAVINGS
Solar Power System
$8,000
Substantially reduced, potentially no power bills or power credits saving $2,000 per year.
Solar Hot Water System
$4,000
Reduces water heating running costs by between 60 and 80% saving of more than $4,000 over 10 years
Colourbond Water Tank
$2,000
Substantially reduced water bills potentially $900 per year
Grey Water Recycling System
$2,500
Reduces the need to use tank water for gardening
Boral Plasterboard
15% more than standard plasterboard
Embodied energy of the overall home
Double Glazing
20% more than standard windows
Natural thermal comfort and reduced need for artificial heating and cooling therefore reducing power consumption and associated bills.
High Level Insulation Earth Wool
Approx. 10% more than standard insulation
Natural thermal comfort and reduced need for artificial heating and cooling therefore reducing power consumption and associated bills.
Water Saving Fixtures and Fittings
Approx. 20% more than lower WELS rated products
Reduces water consumption and associated water bills.
LED Light Globes
Approx. $15 more than a traditional light globe
$45 over the life cycle of the globe
Electricity Usage Meter
$150
Increased awareness of energy consumption and therefore potentially reduced power bills.
THE BUILDING ECONOMIST – JUNE 2015 – 21
PROJECT DES IG N FEATU RES AN D ENVI RON M ENTALLY-
Water Tank
FRI EN DLY I NCLUS IONS FOR TH E ECO - BAL ANCED
Conservation of water is paramount for every new home to harness
HOM E HAVE FOCUS ED ON DELIVERI NG
this natural resource. The 3000 litre water tank configuration for
EFFICI ENC Y I N EN ERGY AN D WATER TO BOTH
Eco Balanced 1 aims to supply all the necessary water needs of the
LOWER I M PAC T AN D COSTS, AN D HAVE
homes toilet, dishwasher and washing machine.
I M PRESS IVELY EXTEN DED TO TH E WAY TH E HOUS E IS BU I LT – NOT J UST HOW TH E FI NAL PRODUC T RU NS. SOM E OF TH ES E REMARK AB LE
Grey Water System The aqua tech Grey water system treat and re-distributes water
FEATU RES I NCLU DE:
from the laundry for use in the vertical garden and surrounding
Solar Power System
reduce reliance on the solar electricity supply.
A 2.0Kw grid connect photovoltaic power system acts as a mini
Material Selection and Efficiency
power station for Eco Balanced 1, supplying power and sending surplus power back to the electricity grid. When surplus power is fed back to the grid, energy retailers credit your account - with the potential to substantially reduce or eliminate your power bill. Solar Hot Water System A Therman evacuated tube solar hot water system was chosen for the home for its award winning energy efficiency and ability to cater to the needs of a home with a small footprint such as the Eco-Balanced 1 Siting Efficiency Eco-Balanced 1 achieves an 8 star energy rating through the integration of passive solar principals so operational energy consumption is reduced. The home is designed to be orientated to the north to take advantage of natural lighting and to reduce the reliance on artificial heating and cooling. A 900mm eave overhang and double glazing minimises solar absorption. Lighting
garden. It is connected to an energy efficient water pump to
The extraction, transformation, use and disposal of materials all have environmental costs, such as habitat destruction, resource depletion, energy use, air pollution, water pollution and solid waste problems. This has been have been a paramount priority in the selection of the materials chosen for Eco-Balanced 1. The origins and fabric of each material have been thoroughly analysed to access their environmental benefits and selected for the EcoBalanced 1 display based on their ability to conserve natural resources and provide life cycle benefits for the home. Modular Design The modular design and construction of Eco-Balanced 1 significantly reduces the use of resources and extend the useful life of the home. The modular configuration increases flexibility and adaptability of the home which leads to a reduction in wasted space, resources and money. Similarly the use of disassembly or de-constructible building techniques can provide future flexibility and options to meet changing living requirements. Locally Sourced
LED down lights are used in the home which save around $45 in energy costs over the lifespan of the globe and has a third less greenhouse gas emissions.
Locally sourced materials, products, components and assemblies reduce the environmental impact of Eco-Balanced 1 that would otherwise be incurred from transport i.e., the attendant energy
Green Switch
and associated resource inputs. Sourcing from local suppliers also
A green switch isolator shuts down power within the house on
supports local community and manufacturing in rural Victoria.
exit to everything except the fridge, smoke detectors and sensor
Factory Construction
lights. This ensures that there is no wasted electricity while the house is not in use.
The two modules that make up the Eco-Balanced were all constructed in a factory environment. Materials are delivered
Electric Car Charging Point
to the factory and safely and securely stored to prevent damage
The electric car charging point, via the grid connect solar
or deterioration from moisture and the elements. Beyond
electricity system, encourages transport utilising this renewable energy source. This introduces an awareness of this innovation in technology as a necessary step toward reducing emissions into our atmosphere.
quality management and improved completion time, modular construction offers numerous other benefits to owners. Removing approximately 80% of the building construction activity from the site location significantly reduces site disruption, vehicular traffic and improves overall safety and security. Building in a controlled environment reduces waste through avoidance upstream
22 – THE BUILDING ECONOMIST – JUNE 2015
rather than diversion downstream. This, along with improved
second display home on site. During the time before the Eco-
quality management throughout the construction process and
Balanced 1 was delved to site all storm water was managed by
significantly less on-site activity and disturbance, inherently
maintaining an adequate level of water on site to service the
promotes sustainability.
existing garden beds. A contingency plan for excess surface run
Prefabrication Traditional building methods are labour intensive, allow for poor workmanship quality and heavily relies on use of multi-layered
off was established by creating a channel to redistribute the stormwater to existing garden beds. Noise Pollution
subcontractors, hampers management control and results in
Noise control on site is reduced due to the offsite prefabrication
excessive waste generated from construction activities. The
of Ecoliv modules. There is minimal noise pollution during
prefabrication process can reduce construction wastage by up
the final fit off of Eco-Balanced 1 as over 90% of the house
to 52% and is one of the best methods to reduce construction
construction is conducted off site.
wastage. Site Disturbance
Innovative Construction Techniques The compact nature of each module minimises wasted space,
During the delivery of the modules, multiple measures were
resources and money. A lightweight footing system allows site
taken to minimise site disturbance. The Widespan joist and
adaptability and minimal excavation the construction process is
bearer footing system was nominated to ensure minimal impact
quick and uncomplicated.
on the existing site. This system is lightweight and is suitable for relocatable homes and differing site conditions. Minimising Stockpiles
Air Quality Protection Most people spend about 90% of their time indoors especially in temperate southerly Australian areas such as Victoria. Careful
There are minimal stockpiles on site due to the prefabrication
selection of materials, products, components and assemblies
of the modules off site and efficient material allocation for the
can therefore have a considerable impact on the wellbeing of
decking that was constructed on site. The minimal wastage
building occupants.
occurring on site was collected and re-located to the skips at the factory that collect the minimal wastage. Storm Water Control The site contained a previous display home which was positioned
These award winning modular homes are a definite sign that the future housing market is green. Eco-Balanced homes are an education for the market on building green and could really open the door to a new way of living in Australia.
to allow for space to be provided for the Eco-Balanced as a
THE BUILDING ECONOMIST – JUNE 2015 – 23
QS KIT
THE GREEN ISSUE THE GREEN KITCHEN
WITH THE ISSUE OF BUILDING AND LIVING A GREEN LIFESTYLE GAINING MORE POWER AND PREVALENCE WITH EACH PASSING YEAR, IT ’S IMPOSSIBLE TO IGNORE THE IMPORTANCE OF WHAT WE ARE EATING AND THE IMPACT THIS HAS ON HEALTH AND WELL BEING. IT ’S ALL GOOD AND WELL TO IMPROVE THE ENERGY EFFICIENCY OF AN OFFICE BLOCK OR HOME, BUT WHAT GOOD IS THAT IF WE ARE NOT PAYING ATTENTION TO THE EFFICIENCY OF THE FUEL WE ARE PUTTING INTO OUR OWN BODIES. THIS ISSUE WE ARE THRILLED TO SHARE SOME SUSTAINABLE, ORGANIC AND HEALTHY FOOD FOCUSED RESOURCE TO HELP YOU CONDUCT A HAPPY, NUTRITIOUS AND FUNCTIONAL LIFESTYLE. BON APPETIT!
JAMIE OLIVER’S FOOD REVOLUTION & THE PETITION GLOBAL CAMPAIGN Now this is a topic very close to our hearts
need to lead healthier, happier lives, for
Jamie’s global petition will then be
at BE. We couldn’t provide a feature on
themselves and their future families.
presented by Jamie himself at the G20
sustainable and healthy living, without mentioning this important global campaign and fight against diet-related disease.
The Campaign and the subsequent petition are fighting to put compulsory practical food education on the school
Food Revolution Day is a global campaign
curriculum for all children across the
to put compulsory practical food
globe (this is currently not the case in
education on the school curriculum.
Australia). With diet-related diseases
Pioneered by the fabulous Jamie Oliver,
rising at an alarming rate, it has never
the focus is on educating children
been more important to educate children
about food in a fun and engaging way,
about food, where it comes from and how
to equip them with the basic skills they
it affects their bodies.
24 – THE BUILDING ECONOMIST – JUNE 2015
summit where he will call on the leaders and governments of all G20 countries to make practical food education a compulsory part of every school curriculum. Sign and make your voice heard. www.change.org/p/jamie-oliver-needsyour-help-fighting-for-food-educationfoodrevolutionday www.foodrevolutionday.com
SUSTAINABLE SEAFOOD GUIDE
LOCAL HARVEST
GROW COOK PRESERVE
APP
WEBSITE
BOOK
This independent guide helps seafood
We just love this Australia-wide directory
There is a real trend at the moment
lovers make ocean-friendly choices when
that helps you discover good food close
for any number of diets or “lifestyle
selecting the produce they want to buy
to you.
plans”, from Paleo, to Dukan, quitting
and cook with.
Simply enter your postcode and see your
It is easy to use and the only of its kind
local list of shops, grocers, farmers
available to the Australian market. It
markets, restaurants, community
shows you over 90 different varieties of
projects and more.
fish and seafood, including those from wild-caught fisheries, farms and imported species. The traffic light ranking system of Green “Better Choice”, Amber “Eat Less” and Red “Say No” - lets you make educated choices on what you are buying. Developed by the Australian Marine Conservation Society (AMCS) it also features the Greenpeace Canned Tuna
carbs to quitting sugar and everything in-between. It’s hard to know which way to turn and who to follow. Depending on your personal health requirements, of course, we think you can’t beat the fresh,
The website also features loads of learning resources on organic produce as well as guides on how to make your own skin care or grow your own produce. It is a fantastic one-stop resource and a great way to start the journey to a sustainable lifestyle. localharvest.org.au
wholesome and sustainable approach. Grow. Cook. Preserve. focuses on foods and delicious, handcrafted dishes that you cannot only cook, but also grow right at home! Whether you’re looking to lower your carbon footprint or just want to serve your family fresh, organic meals, Grow.
Guide so you know what brands to buy
Cook. Preserve. will help you build a
and which ones to avoid due to
sustainable lifestyle from the ground up.
destructive practices. Available for iPhone and Android
Grow Cook Preserve By Helen Lynne Culpepper
www.sustainableseafood.org.au
THE BUILDING ECONOMIST – JUNE 2015 – 25
SOCIAL TRANSPORT FOR NSW: INFRASTRUCTURE VISION AND THE ROLE OF THE COST ADVISOR NEW SOUTH WALES CHAPTER WEDNESDAY, 1 APRIL 2015
26 – THE BUILDING ECONOMIST – JUNE 2015
YQS POKER NIGHT WEST AUSTR ALIAN CHAPTER THURSDAY, 16 APRIL 2015
If you have held or attended an AIQS event in your area and want to feature it in the Social Pages please send the event details and photographs with the names of who is in the picture to editor@buildingeconomist.com.au
THE BUILDING ECONOMIST – JUNE 2015 – 27
SPECIAL FEATURE
ONLY CONNECT
Romilly Madew
ROMILLY MADEW, CHIEF EXECUTIVE OFFICER, GREEN BUILDING COUNCIL OF AUSTR ALIA
THE THEME FOR THIS YEAR’S GREEN CITIES WAS ‘CONNECT’ – AND IT PROVED A CHANCE TO CONNECT BOTH PHYSICALLY, THROUGH INCREDIBLE NETWORKING OPPORTUNITIES, AND INTELLECTUALLY – TO NEW IDEAS THAT WILL HELP US MOVE BEYOND BUSINESS AS USUAL.
We now operate in a borderless world of technological wizardry – a place where people, ideas and capital are unrestricted. This has far-reaching implications for our cities – and for our industry. As our keynote speaker, acclaimed urbanist Larry Beasley said: “it’s a dog eat dog competition among modern cities” in which “what your city feels like is a determining factor in its success or failure.” Lord Mayor Robert Doyle told the audience that “making our city more sustainable is directly connected with our future prosperity.” But creating places that people love – that they connect to – demands more than a focus on energy efficiency and water sensitive design. We need to, in the words of Larry Beasley, “put the soul back into the city. It’s about “bringing back the human touch”. Rob Adams fired us up with a reminder that the critical factor in making a dynamic, exciting, liveable city is people. Rob’s spent the last thirty years redesigning the streets of Melbourne so that they are places that people want to be. “None of this is a mystery, none of this is difficult” he said. We are nevertheless poised at a time of “great opportunity and
28 – THE BUILDING ECONOMIST – JUNE 2015
great obligation”, as Lend Lease’s CEO of Property, Tarun Gupta,
Many speakers underscored the need for us to create ‘ecosystems’,
so eloquently put it.
with collaborative partnerships at the core. Jillian Broadbent,
The challenges we face are enormous. Rob Whelan, CEO of the Insurance Council of Australia, had us sitting on the edge of our seats when he showed us the graph of what he called the “inexorable climb” in costs of natural catastrophes due to increasing frequency and intensity of extreme weather events. The solution, he said, is more resilient buildings, because “if we
Chair of the Clean Energy Finance Corporation, predicted a future in which “governments are less directive and more facilitative”. She also talked about the benefits of connecting disparate groups to foster new ways of thinking – talking about the sustainable solutions to be found from linking old engineers with young data analysts, for instance - the ‘Medici effect’.
are going to live in places that are exposed to extreme weather,
Other speakers agreed. Anna Skarbek, during the Women’s
we need to build for them.”
Leadership Breakfast, shared the lessons she’d learnt from
The opportunities are just as great. Carnegie Mellon University Professor Vivian Loftness encouraged us to design for ‘environmental surfing’, and Harvey Bernstein shared with us how 77 per cent of global building owners are now willing to pay more for healthier buildings. Architect and biomimicry expert Michael Pawlyn encouraged us to look to nature for inspiration, challenging us to see “nature as a design sourcebook that has benefited from 3.8 billion years of development process, with all its products withdrawn from the market.” We heard about how the investment structures are starting to fall into place, with green bonds on the rise. And Michael Salvatico, Vice President of MSCI, pointed out that the US$10 billion spent on green bonds in 2013 is expected to climb to $100 billion in 2015.
neuroscientists and novelists. Holly Ransom spoke about how industry leaders are learning to connect with disruptive innovators to create new business opportunities, and about how a burning sustainability problem of GE’s was solved through a competition that was won by a Singaporean dentist. The message is clear. While our industry is hyper-connected, we will never have all the answers, so we must connect with other industries and other ideas. One of the most striking thoughts for me over the two days came from Reuben Berg, the founder of Indigenous Architecture and Design Victoria. Reuben pulled out a tape measure to represent the 68,000 years that indigenous people have lived in deep connection with the land, and then compared it with the tiny 200 years or so since European settlement.
One of the great themes of this conference was the need to drive
Reuben emphasised that we have much to learn from aboriginal
cultural and structural change – within our teams, within our
people about connection to place, and connection to the
organisations, and with our relationships with governments – that
environment. But he also reminds me that we have much to
encourages connections over competition.
learn from people with other points of view, other ways of living,
Entrepreneur and ‘conscious capitalist’ Craig Davis warned
other ways of working. And it’s only through connecting that we’ll
us that the future of our industry is deeply connected with our
discover what they are.
“awareness and sensitivity” to humanity. “What is the point of having sustainable buildings if the people aren’t?” he asked. He spoke of the need to “shift from a hierarchy to a network.”
THE BUILDING ECONOMIST – JUNE 2015 – 29