The Building Economist - June 2015 - The Green Issue

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.

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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

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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.

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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