Cost Savings for the Construction Industry: Delivered through targeting the volume of waste produced

GPT WASTE MANAGEMENT WHITEPAPER APRIL 2017

COST SAVINGS FOR THE CONSTRUCTION INDUSTRY

DELIVERED THROUGH TARGETING THE VOLUME OF WASTE PRODUCED

HOW ‘SMARTER’ WASTE MANAGEMENT IN THE CONSTRUCTION SECTOR CAN LEAD TO GREATER EFFICIENCY, COST SAVINGS AND AN ENHANCED STANDARD OF EXCELLENCE

Executive Summary The construction industry continues to be one of the most significant producers of waste across all commercial sectors and with pressures on budgets and enhanced deadlines, waste management plans are fast becoming one of the top priorities for the construction industry.

With the responsibility of managing large waste arisings, along with the potential impact to the environment as well as human health, it is vital that proper waste management procedures are put into practice across all construction sites. Site Waste Management Plans represent the extent of the sectors drive to take control of waste production and management, however, there must be room for better processes and procedures to reduce this further.

By implementing such changes, the construction sector could not just significantly reduce quantities of waste being sent to landfill, but also the overall amount of waste being produced and in doing so make a substantial contribution to sustainable development.

GPT Waste Management, a leading waste management provider in the UK, have carried out extensive research into how streamlining waste in the construction industry can lead to greater efficiency as well as cost savings for their construction clients.

This White Paper is provided as guidance to assist such companies, design teams and main contractors in achieving good practice whilst also demonstrating the opportunities for cost savings through the implementation of effective improved waste management strategies. It is based on a simple example, a new approach and the impact it has had on construction companies’ bottom line.

High recycling rates have become the norm across all sectors and with GPT’s national average currently around 96%. This however does nothing to drive more strategic cost savings, with a focus on balance sheet savings based on overall waste reduction. The sector would benefit by adopting an industry focused method of calculation and assessment.

A similar approach used by GPT in the Healthcare sector for example has been the implementation of a “saving per hospital bed” calculation; “Saving per property built” in the construction sector would seem rational. By adopting such a practise, costs and waste production volumes could be driven down whilst still achieving high recycling rates. This would drive a standard of excellence across the sector.

The waste management sector suffers from a lack of clarity and consistency.

Traditionally, pricing was based entirely on regional activity; the more suppliers in a region, the more likelihood of getting prices down. However, there was no “money supermarket” or other advisory company to assist in this process.

A customised waste management service can naturally offer a huge amount of security and unearth substantial savings within a construction project due to the amount of detailed investigation and strategizing that is carried out before implementation. .

THE BUSINESS CHALLENGE

THE BUSINESS SOLUTION As part of a consultative approach, GPT Waste Management have supported many companies on tighter procurement measures to reduce the items they have had to dispose of, to remove them from their balance sheet. The consistent reviewing of supply chain management reducing waste, and therefore costs wherever, is a must.

GPT uses the "smart" process to reduce costs, through enhanced client engagement and subsequently a better understanding of their processes and procedures. Instead of transactional cost savings related to container type, strategic 20%+ savings are being removed from the overall annual cost.

Construction clients approach waste management firms with strict waste management and landfill targets. They want confirmation that waste management service being provided will ensure that these targets are going to be met. Through a consultative process, GPT Waste assess, define and advise on where "wastefulness" has taken over, clouding the actual cost related to removing waste. The transactional cost is still important, but only after the right amount of transactions has been agreed.

As any construction contractor knows well, space onsite is always issue and it is important that there is a detailed process in place on how waste is handled, segregated, quantified, and trafficked through the site always thus allowing them to focus on the core business of building.

Whilst every building site is different, a more strategic approach to on site waste management will allow companies to adopt a single code of practise and one that would be replicated across the company’s entire estate.

Through a consultative approach engaging with planning, process and procedure, good, robust waste management can mitigate waste production resulting in cost reduction. GPT utilises a fully compliant supply chain management structure ensuring that all elements come together on site; supported by robust regular online reporting methods.

Ultimately if it is not yours to dispose of, then it is not your cost to bare.

It's about the enhanced client experience and not just the price.

THE CONSTRUCTION OF GOOD WASTE PRACTICES The Industry taking the lead The Environment Agency works closely with key industry groups to explain the message about duty of care. Recent campaigns, such as the ‘right waste, right place’ (RWRP) industry led campaign, intended to raise awareness of the ‘duty of care’ all organisations have when dealing with their waste seems to generate a lot of interest.

Awareness of duty of care is low especially in the construction sector, where the waste chain can be particularly complicated. Over a quarter of illegal waste sites the Environment Agency encounters, has some construction or demolition waste on the site where it is not treated or disposed of correctly, minimising harm to the environment.

Misdescription of waste from construction, demolition and excavation is a widespread issue with waste described as ‘soils’ or ‘muck away’ – the rules are clear excavated soils must be properly assessed for hazardous properties.

The waste management industry should now be mature enough to take the lead on the provision of things like guidance, best practice and offering clients solid advice. Many waste companies do of course, but perhaps others needs to take more of a lead.

GOOD WASTE PRACTICES

Alan Holmes, from the Environment Agency, commented:

“Right Waste Right Place launched their construction sector campaign at RWM and highlighted their recent market research findings about duty of care awareness.

The awareness of duty of care is low especially in the construction sector, where the waste chain can be particularly complicated. At RWM I also encountered consultants who still advise clients that all they need to do to comply with duty of care is use a registered carrier and complete a transfer note. Just shows the need for awareness raising and to reduce the volume of construction and demolition being sent to illegal sites.”

In 2016, Carillion approached GPT Waste for waste management services in order to assist in reaching their high diversion from landfill targets at their Doncaster Station Project.

The project involved building a new platform and footbridge for the city centre station, which meant a lot of excavating and signalling work had to be carried out. GPT Waste were asked to visit the site, to provide some alternative measures for managing mixed construction waste, general waste, metal and office waste.

The Waste Management Solution Due to the site being based within an active environment, the size of the construction site was restricted. GPT Waste carried out a site visit to design the site in a way which minimised disruption. GPT Waste proposed a new service provision using smaller containers emptied regularly but with improved front-end segregation, which in turn ensured that the strict landfill diversion target was achieved.

The Results • Meeting landfill diversion targets • Effective waste management within an active working environment • Improving front-end waste segregation • Diversion from landfill through waste to energy processing • Waste management measures designed to prevent obstruction on a small construction site.

• Cost management achieved below initial projected budgetary costs.

“GPT have provided a quality, compliant resolution for managing waste here in Doncaster and taken a proactive approach on site.”

Carillion Project Manager

A CASE IN POINT

CONCLUSION Financial savings of over 20% can be achieved through a more considered approach to the procurement of waste services and the management of the service. Savings of 15% to 25% can be achieved through a more considered approach to the procurement of waste services. Clearly, understanding how to get the best procurement deal is important, but so is developing a robust waste management strategy through understanding the options available to process waste. If your construction site is looking to reduce cost, increase operational efficiency and improve their environmental credentials, then a revised approach to waste management should be considered.

The key difference is between ‘waste disposal’ and ‘waste management’. Waste disposal is costly, waste management is less costly but more effective, because it identifies how to reduce waste arising.

GPT Waste provides construction waste management services, specialising in protecting people and reducing risk. They work with local and national companies across the public and private sector to improve employee and customer safety, ensure legislative compliance and minimise the environmental impact of waste disposal.

Their services include: • Resource management guidance • Hazardous waste management programmes • Construction waste disposal To speak to someone about your construction waste disposal requirements, call 0844 854 5000 or email info@gptwaste.com.

GPT Waste, the largest UK independent provider of waste management solutions and sustainable waste services, offer a free waste review consultation for Directors.

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