14 May 2013

Rebuilding Broken Britain

To create enduring value within our economy I believe that we need to radically change not only the nature of the buildings that we build, but also, the way that we procure them.  To achieve holistically sustainable buildings it is essential that the procurement process is intelligent and able to assess and reconcile the social, economic and environmental aspects of every project.  However, this is not currently the case, as is amply demonstrated by the current fashion for meaningless architectural “iconography” being built in the City of London.


These projects have all been procured by professional, repeat clients, who claim to take sustainability seriously.  So why are they all building painfully fashionable, contorted building forms that are expensive, spatially compromised, have thermally inefficient fully glazed facades with deep plans that are impossible to daylight?  They have no doubt been encouraged to take this path by senior planners in the City who make powerful recommendations as to which “starchitects” work they would like to see added next to the City’s architectural zoo.  I would argue that developers of these schemes have simply applied a green wrapper to their activities and continued with business as usual, rather than embedding sustainable development at the core of their activities.

To achieve the required paradigm shift, we need to select design team members for their demonstrable track record of innovation in the field of sustainable development.  Project specific briefs should be prepared and published that define what is to be built and what key performance indicators will be used to judge the success of completed projects.  These indicators must include annual occupant satisfaction surveys, operational energy expenditure along with maintenance expenditure, with outcomes made publically accessible: after all, most of these buildings ultimately become assets of our pension funds!

I believe that we need to arrest the decline in quality and fitness for purpose of development; where we can calculate the cost of everything but having little or no understanding of where construction creates value.  To be relevant we must sever the link between construction output and the creation of investment assets whose value bears little or no relation to the performance of the building.  The fact that we are still debating if a “green premium” or a “brown discount” exists is powerful evidence that we are unable to effective ascribe value to the products created by our industry.  In my opinion Quantity Surveyors are obsolete and should be retrained to become Value Managers, able to orchestrate and create enduring value for clients and the wider UK economy.  This would be a good first step in redefining the why that teams interact, smashing professional silos can be and remade to encourage the sustainable outcomes that are urgently required.

Intelligent procurement must incorporate local procurement, so that communities that experience development receive social and economic benefit from the process.  We must stop packaging up ever larger parcels of development and instead place more, smaller, lower value contracts with locally based small and medium sized companies (SME’s) to create more jobs and spread construction expenditure more equitably throughout the UK.  Local firms who will be forced to live with the products of their labours, whereas national or international builders are far less accountable to the communities who inherit the buildings that they deliver and where the value that is created by the process benefits remote shareholders rather than communities.

The idea of local procurement should I believe be taken further with the construction industry supporting locally manufactured building products and materials that also create jobs and value.  This philosophy needs to be incorporated at the brief stage, requiring design and delivery teams to embrace the notion of the final building being Made in Britain, with public reporting of the outcome.  This initiative could drive a fundamental socio-political shift, moving away from a reliance on services to create value, restoring the balance the in the UK economy by supporting manufacturing.

There is a strong belief that Design & Build is the best answer for most buildings and clients.  However, as the recession has continued to bite it is noticeable how the amount of “design” that is being undertaken by contractors has dramatically reduced.  It is essential that Project Managers undertake detailed analysis of tender returns, if clients are to get the buildings that they think that they are buying, rather than the best that the contractor can cobble together without the correct amount of timely, expert detailed design.

Large organisations are changing their terms and conditions, increasing the time that suppliers have to wait to be paid; contractor Carillion now expect suppliers to wait 120 days to receive payment.  This creates cash flow issues further down the supply chain and can result in small, well run companies going out of business.  Associated with this issue is the protracted nature of contractual negotiations, demands to agree to unfair and ultimately uninsurable terms and conditions, resulting in significant delay in the period from starting work to receipt of the first payment.  It is essential that the government takes urgent action to get the money moving and should start by insisting that all appointments are agreed prior to commencement and strict 30 days terms are mandatory.

We must increase investment in training and education to equip our workforce with the skill, knowledge and expertise required to add sustainable value, regardless of the individual’s role in the supply chain. Crucially, I believe that we need to invest in vocational training to radically improve skill levels within our sector and create a workforce who are able to deliver construction to the higher levels of performance required.  The industry must offer great career opportunities for all regardless of gender.

For the construction sector to once again become an engine for growth in the UK economy then investment must be focused not on iconic new build schemes but instead on the refurbishment of our existing building stock.  We urgently need to invest in improving the performance of our existing buildings now!  This will create jobs, establish the essential missing link between energy efficiency and energy supply, reduce our reliance on expensive imported energy and ultimately reduce the number and cost of the next generation of nuclear power stations that we will be forced to buy from aboard if we are to keep the lights on.

To rebuild broken Britain sustainably we need to radically change the things that we build, along with the ways that we procure them.  Professional boundaries need to be challenged and new bodies established.  I would argue that none of the existing professional bodies can provide the leadership needed and what we require is an Institution for Sustainable Development, open to all professions and their clients, which can effectively research, promote and lobby for change.

Localism should be reinterpreted to demand that the value created by development directly benefits the communities that host development, creating jobs and economic activity close to the site.  On a national scale we should develop a new vernacular architecture using materials and products that are Made in Britain, including the development of upcycled products that convert waste materials into new construction products and materials.  Fundamentally we need to understand, through compulsory Display Energy Certificates (DEC), how every building in the UK is performing and then use this intelligence to guide a national refurbishment mission to dramatically improve performance.

This piece was first published in Sustain Magazine May/June 2013

29 April 2013

Phoenix HQ - Update No. 5

Another month has passed and once again it is time for the Phoenix HQ construction update.
 
 
The Site (26.04.2013)
 
The most significant change that has occurred on site since the last blog post is that the Barn building's structure and SIPs are now in place. The Barn will act as a extra community space or village hall type structure and already has its first booking for a party next January.
 
The Barn (09.04.2013)
 
Inside the main building the north lights in the roof are now installed and boarding removed. This has transformed the first floor from a dark and slightly dank environment to a spacious space awash with a very even north light. Making what seems to me to be ideal working conditions.

The north lit 1st floor (26.04.2013)
 
The majority of the work now taking place is now the installation of Mechanical and Electrical portions of the design. The electrical trunking and trays have almost all been installed and soon we will see the exposed galvanised conduits appearing on the walls. 
 
The view from the entrance (09.04.2013)
 
The other exciting thing that has has happened on the project is that on the 12th of March there was a topping out ceremony attended by representatives of both the community and the project team. 

  
The Team  (26.04.2013)



18 March 2013

Black Thoughts on Ecobuild

Well that’s ecobuild over for another year, and I for one say good!  In many ways I think that ecobuild reflects many of the barriers that are preventing our industry delivering the step-change that is required to address the pressing issues of our age.  As I walked around the vast, artificially conditioned interior of ExCel London what struck me most powerfully was the gap between presentation and reality.

Every product has
been greenwashed!
In the evolution of sustainable design I believe that we have really not changed much at all; all that has changed is the words that we use to describe products and the spin that is used to emphasise their virtues.  Ecobuild is dominated by major global construction product manufacturers and suppliers all of whom have added words like “eco” or “green” to the descriptions of their products and then, in the vast majority of cases, simply continued with business as usual.

The high cost of exhibiting at the show prevents most small companies and start-ups from displaying their wares, so almost all of the really interesting things that one found in the early shows, back in the good old days at Earls Court, have now disappeared.  For me to continue to make the annual pilgrimage to the Royal Docks, this must change.  I think that as the UK’s largest construction trade show there is a responsibility incumbent upon UBM, the franchises new owners to give something back, and this should be in the form of small low or no cost stands for small and medium sized enterprises (SME’s) and start-ups.

As a practice, we have an initiative called Product of the Month where we ask our team to identify innovative sustainable building products and materials.  On average we have noted that it takes at somewhere between 3 and 5 years for the products that we find to appear at ecobuild.  Clearly, this would be cut dramatically if they were able to exhibit at low or no cost.  Also, by gaining exposure sooner they are more likely to survive and thrive.


The international nature of the industry is reflected at ecobuild, with significant space given over to foreign firms, with a rapid growth in those coming from China.  Many contractors now boast about having their own global supply chain, able to source products direct from Chinese manufacturers, cutting out the middle men.  But is this really a sustainable model for the UK economy?

I passionately believe that we need to rebalance our economy by growing our manufacturing sector.  This is essential if we are to create the range of jobs that we need to achieve full employment and long term social cohesion.  Construction products and materials manufactured and sourced from the UK create jobs and ensure that value is created in the UK and not aboard.  Removing long distance supply chains also delivers easy cuts in embedded carbon, which is increasingly important as we cut operational energy.

Glabal trade,
large carbon footprint!
Local sourcing of construction labour will ensure that host communities benefit from the construction process, but I would like this principle extended.  Small and medium scale (SME) businesses create jobs locally and in greater numbers than large national or international firms.  I would like to see all state funded procurement favour local small businesses for all contracts below £5 million.  Locally designed and built projects will help reconnect the property industry with the communities that we should be serving, correcting the distortions that have occurred due to property being seen primarily as an investment asset class rather than a means of enhancing the efficiency and wellbeing of building occupiers.

There is a pressing need for radical change to make the construction industry relevant and capable of addressing the concerns of our age.  The future must be small, local and accountable if we are to deliver intrinsically sustainable development.

12 March 2013

Phoenix HQ - Update No. 4


In the month and a half since the last blog work has continued on the Phoenix HQ despite the bad weather. When the last post was written the work that was happening on site included the installation of the SIPs, the blockwork and the installation of the zinc.
 Zinc Roof - 29.01.2013
This month the zinc has been moved from the walls to the roof so that, although no visible progress has been made for the casual passer by. The majority of the roof is now covered and work can progress on large areas of the first floor without fear of water damage.
Acoustic linings on roof - 28.02.2013
Where the zinc has been installed and the roof is water tight the team on site have been fixing a layer of rockwool to the internal face of the roof to create an acoustic barrier. A layer of either plasterboard or OSB is then fixed on top of this. Once these have been installed they will need to be painted before first fix begins.
 

Sample of electrical conduits - 11.02.2013

In preparation of first fix commencing we have started to see samples of what the M&E sub-contractors are proposing. With the exposed blockwork and minimal finishes these are of particular importance as they will be more visible than in an ordinary building.
Credit Union Screed - 11.02.2013

Now that the blockwork is complete on the ground floor the team have been progressing with the screed floor. So far the entirety of the screed in Phase 1 is complete and Phase 2 should have been finished in time for the next blog.
Breaking ground - 20.02.2013

As well as exciting things happening on the inside of the main building, work has continued around the rest of the site. The work required to reinforce the rear site wall has been completed and the foundations for the Barn and Substation are now in place. 
By the next update the Barn's frame and SIPs will have been installed and first fix will have commenced. The internal walls will also have been painted, which means we will be able to start getting an impression of what the internal spaces will feel like.
 The site - 28.02.2013

11 February 2013

Re-Imagining Design and Embedding Sustainability

Sustainable design is something that all architects do now; right?  It’s on every practices website, included in all their presentations and has been totally integrated into the way all buildings are designed.  Even the RIBA is now belatedly “on message”, promoting the idea that buildings should be designed to be sustainable.
 
Mies van der Rohe glass skyscraper
 concept designed in 1919
 So, how come the buildings that we are constructing now have not changed significantly since the birth of modernism almost one hundred years ago?  Mies van der Rohe published his revolutionary concept for a glass clad skyscraper back in 1921 and you could argue that we have been repeating this typology, with only minor amendments, ever since.  Is the Shard not just a less efficient more compromised variant of this underlying philosophical position?

What has changed is the rhetoric that accompanies each of these increasingly contorted iconic projects; all of which claim to be exemplars of sustainable development.  Clearly, it is not only architects who are guilty of not walking the talk when it comes to sustainability; developers, funding institutions, governments and local authorities are all rebranding their particular form of “business as usual” in a new recycled paper wrapper!

Renzo Piano all glass
 Shard nearing completion 2013
 It is my strongly held belief that this incremental improvement approach is no longer sufficient and what is required is a fundamental reappraisal of why, what and how we build.  In short, I believe that we are about to enter a period of rapid and revolutionary change that will result in re-imagining design and the development of an entirely new Sustainable Architecture, shaped by an understanding of the challenges that we face and therefore directly relevant to the concerns of our age.

To achieve the necessary paradigm shift we must challenge some deeply ingrained behaviours and beliefs and fundamentally re-evaluate the reasons why we build at all. This process must start by placing social sustainability and needs of building users at the heart of the design process.  It is no surprise that the best examples of sustainable design are conceived when the building’s users are known before design commences.  Also the greatest value that a building design can create is not in energy savings but in helping to improve the productivity of the people who work in them.  To achieve this added value it is essential that buildings are designed from the inside and the needs of the user out.  This philosophical approach creates massive opportunities for creativity and innovation, once the dead hand of style is rejected, in favour of a new sustainable building aesthetic where each design decision is directly informed by its social, economic and environmental issues.

Our CAFOD project, that I will be presenting at the UKGBC’s Re-Imagining Design course on the 27th February, is a good example of this approach.  The key aspect of the project’s evolution was that we did not win the commission with an image of a completed building, but instead explained how we would assist them, as a non-expert client, to develop a bespoke; user centred sustainable solution, shaped to fit their immediate needs and facilitate organisational change.

Black Bio Climatic office
 tower concept 2005
This approach is in stark contrast to the vast majority of speculative commercial buildings, which are conceived primarily as investment assets and whose appearance and architectural style are determined at inception.  This procurement process, I would argue, results in the current fashion for more and more contorted building forms, as design teams strive to make the most remarkable, arresting images, rather than the most sustainable designs, to secure commissions.

If we are to make the UK’s building stock more sustainable I believe it is essential that funding institutions only agree to invest our pension contributions into demonstrably sustainable buildings.  This will change overnight what gets commissioned, since developers want to be able to sell their completed developments so that they can reinvest profits into the next development opportunity.  It will also result in less risk and more predictable returns for the funds, since sustainable buildings will either command a “green premium” because they are more desirable or at worst will not experience a “brown discount” due to their increased occupation costs.

In re-imagining design I believe that we need to place social sustainability at the heart of the design process, with the explicit intention of delivering buildings that create value by demonstrably improving the performance of the people who occupy them. This philosophical shift will finally close the cost benefit gap that makes investing in higher performance difficult to justify.  Over time the quality and value of the UK’s building stock will increase, creating value and safe guarding the investments that ultimately fund our retirement.  A paradigm shift of this magnitude will create a New Sustainable Architecture that is relevant and valuable.  As Mies van der Rohe put so succinctly;

“Architecture is the will of an epoch translated into space”

Surely the will of our epoch calls for urgent, radical change; re-imagining design to deliver buildings that create enduring value for the people who use them, the organisations that own them and the society that they are part of.

Don’t delay, the future starts today!

17 January 2013

Phoenix HQ Update No. 3


There have been significant advances on site since the last blog on the 30th of November last year. At that point Phase I (the first half of the main building) of the frame and SIPs were on the brink of completion and we were expecting Phase II of the frame and the interior blockwork to commence imminently.
Site on the 12.12.2012
 
As of the 12th December Phase II of the composite timber frame and steel deck had been completed and for the first time it was possible to see the overall scale of the building. Since then a number of different trades have been able to operate concurrently on site, which has seen the speed of the construction process gain momentum. Over the last month work has been progressing on:


1. The frame - The weather (bar the cold) has been kind to us and Phase II of the frame has continued on schedule and is now almost complete. All the wall and roof panels are in place and only the framing of the feature window is outstanding.

Installation of the roof SIPs
 
2. Internal Blockwork - The blockwork has been moving ahead in the interior of the completed sections of the frame. As the blockwork will remain exposed with only a painted finish in all the public areas, a lot of attention has gone into its detailing.

Blockwork under construction
 
3. Zinc Cladding - The exterior of the first floor on Phase I of the frame has been sheathed in plywood. In the last week and a half the installation of the zinc, which will eventually clad the entirety of the first floor has commenced. This is very exciting as it is the first of the final finishes that we have been able to see on site.

Zinc being installed
 
As the current trades progress on site the current goal is to complete the installation of the zinc and get the building watertight so that the next major milestone can be reached when the ground floor screed is poured.

Site on the 16.01.2013

30 November 2012

Phoenix HQ November Update


This is the second of an on-going series of blogs that aim to create a photographic log of the construction process at the Phoenix HQ.
At the end of October (click here to view previous blog) a couple of bays had been erected and we could look forward to the completion of the first half of the frame by the end of the month.
Site visit 01.11.2012

When we next returned to site at the beginning of the month the first half of the composite frame had been erected and the construction team were starting preparation for the first floor’s metal deck to be laid.
 
Site visit 08.11.2012

One week later the metal deck was down, and for the first time we were able to gain access to the first floor. At this point the scale of the spaces had started to become more apparent and we were able to envisage how it will feel when the building is in use.
 
 
Site visit 20.11.2012
 
After a two week absence from site the concrete for first floor slab had been laid and work is currently progressing with attaching the SIPs to the composite frame, although there have been some delays due to high winds.
 
Site visit 22.11.2012
 
Phase II of the frame started on the 26th of November and will be complete within the next 3 weeks, when the overall mass of the building should become clearly visible. Concurrent with this, the blockwork is due to commence on the ground floor any day now and the layout of the public spaces and lift shafts will start to take shape. This should all be complete by the 6th of January when first fix is due to commence. 

15 November 2012

BRE Select Black for Innovative 1960’s Office Refurb Study

Black Architecture has been selected to partner with the Building Research Establishment (BRE) on their innovative refurbishment of a 1960’s office building project.  This project is intended to research strategies for the comprehensive refurbishment of buildings of this type.

BRE Building 14

The post war economic boom of the 1960’s and 70’s led to a considerable increase in the number of non-domestic buildings across the UK, including public sector, commercial, health and educational facilities.  Buildings constructed during this period make up around 15% of London’s current offices and over 40% of the UK’s higher education building stock.

They are typically poorly-insulated, using external cladding systems featuring large areas of single glazing, asbestos-containing insulation and other elements, are difficult to heat in winter and prone to summertime overheating, use inefficient air conditioning systems, have high energy costs and large carbon footprints. Users and occupiers experience stress caused by thermal discomfort, patients in healthcare buildings of
that era recover more slowly, and students find it harder to learn. Fifty years on, these challenges translate into complex and costly refurbishment projects, including the challenge of extra costs incurred in relocating tenants, and the disruption to the operations of the building.  Replacement of external cladding systems is considered difficult and expensive, offering no gain in internal
space so no increase in value, despite being the most important intervention from the energy efficiency point of view.

However, retrofitting and refurbishing commercial properties can offer significant advantages compared to building new: building programme benefits (with up to 70% time saving), with improved rental and yield values at a lower cost capital investment and retention of tenants.

Aim of the project

We want to demonstrate through this project that if refurbishments of 1960s and 70s non-domestic buildings are approached strategically and the whole supply chain is involved from inception, risks can be minimised, energy saved and profitability enhanced, with minimal disruptions to the operations in the building and without extra capital costs compared to standard comprehensive refurbishments.

What we plan to do

Built in 1964 with a host of problems typical of the buildings from this era , Building 14 at BRE overheats, uses an exorbitant amount of energy, emits 42 tonnes CO2/year , has a crumbling façade and as such it is an ideal candidate for a strategic sustainable makeover.
It will be used as the physical demonstrator for a research and testing programme allowing refurbishment options to be valuated in a controlled environment. The key output from the project will be a performance specification / ‘balanced scorecard’ (strategic planning and management system), with the potential to be rolled out large scale to similar buildings.

This will deliver:

1.   Exceptional sustainability and energy efficiency improvements (including 80% reductions in energy use, compliance with BREEAM Refurbishment and other recognised standards) with no increase in capital cost investments compared to standard comprehensive refurbishments;

2.   Drastic reductions in operational and embodied carbon;

3.   Improved indoor environment, including better air quality and thermal comfort;

4.   Exemplar project, construction and procurement efficiency with minimal disruption to the day-to-day activities in the building.

BRE Building 14 has been chosen because its design and
construction are typical of many other buildings from the period.  It is prominent within the BRE campus, close to main reception and the Innovation Park, giving good visitor access and making it ideal for demonstration.  It is currently an extremely inefficient building, with an EPC rating of E, therefore offering much scope for improvement.

The building will be a live demonstrator of innovative technologies for the commercial refurbishment sector, which will be updated as new products become available on the market (parallel to the BRE Victorian Terrace domestic refurbishment project). The building will provide new accommodation that will be used as exhibition space open to Innovation Park visitors, business incubator space for start-up companies, office, meeting and seminar areas. A programme of dissemination and promotion will follow completion.  This project will lead the way and influence the thinking of private and public bodies to change and embrace best practice, while happening right at the heart of the Government’s Green Deal implementation programme, and as such will receive extensive media coverage and public interest.

BRE Building 14 refurbishement study
Paul Hinkin managing Director of Black Architecture believes that the project is of strategic significance:

“it is essential that the UK’s aged building stock is retained and made fit for purpose and this project will help to define best practice standards to achieve the highest levels of performance at the best value.  What is most exciting about this project is that it is intended not to be just a demonstration project but to provide a repeatable model that can be rolled out.  We are delighted to be working with the BRE on this pioneering project.”

2 November 2012

Phoenix Community Housing HQ Underway

From this month forward we will be posting monthly updates on the progression of Phoenix HQ as it is constructed. Since the last blog the project has been through planning and Osborne has been appointed as the contractor. The updates will aim give a visual log of the projects construction process.


Ground floor slab cast
Site being prepared for
foundations















By the beginning of the month the Greenman Pub had been demolished and the site cleared. During the first and second weeks the foundations and slab were laid out and completed.

Glulam frame manufactured
in Austria
Hockey stick beams
ready for delivery














Whilst this process was occurring on site in the UK, B&K Structures had the timber frame manufactured by Kaufman in Austria.


Frame erection
commenced on site
First structural bay
nearing completion















The frame arrived on site on the 22nd of the month and the team on site immediately started erection.
The view of the site from the Bromley Road

The completion of Phase 1 of the composite timber frame will be Monday 5th of November and Osbourne will start laying the concrete deck immediately. The SIPS panels are due to arrive on site by the 12th of November.  The installation of the SIPs is due to take 2 weeks so that by the time of the next update, Phase 2 of the structure will have commenced.

4 October 2012

BOB 3: Ethical + Fiscal = Inevitable

A group of carefully selected building industry leaders recently gathered for the latest Breakfast on Black held at The Fire Station in Waterloo.  After a hearty breakfast guests were treated to an informative and challenging presentation from Richard Francis, Director of Sustainability at Gardiner and Theobald. 

Richard Francis
Director of Sustainability
Gardiner and Theobald

Richard’s presentation “Ethical + Fiscal = Inevitable” was delivered with his trademark combination of transatlantic easy style and powerful analysis of the challenges facing the construction industry.  His presentation was split into four sections coving both the immediate drivers for change along with those that he has identified as looming just beyond the horizon.  He neatly summarises the journey ahead as the progression from beauty pageant to talent show, illustrating the need for evidence based decision making along with more intelligent procurement.

Drivers

Richard started by identifying the proliferation in regulations that are being developed to try to achieve more sustainable outcomes.  He made the point that when looked at as a whole there are some key facts that can be identified; that the direction of regulation is to encourage disclosure which leads to transparency and that transparency is essential to allow a market to be created.

The market that is emerging is characterised by wider choice, with smarter occupiers demanding shorter leases and more flexibility.  He posed the question as to why the property industry insists on using outdated names like “landlord” and “tenant” rather than “supplier” and “customer”; questioning if changing names would help to encourage improved quality and higher standards of aftercare.

He reviewed the current state of the market and identified that there has been a dramatic growth in the amount of available second hand property on the market which has increased from about 3 million square feet in 2000 to over 13 million square feet by 2011.

When investors, developers and occupiers are asked to identify the drivers that they believe will lead to property becoming obsolete in the next 5 years, they all identify energy efficiency as either the first or second most likely cause.

Change

Richard characterised the market as in a state of rapid and multifaceted change, with buildings increasingly being judged on how they perform, with savvy occupiers scrutinising certifications like BREEAM and LEED assessments and demanding evidence that actual performance in use is as predicted before they are willing to sign-up.  He sees a growing trend that is moving away from simply quantifying cost to growing importance placed on assessing value.

He illustrated this trend with the fact that 10 years ago it was hard to define, measure or value green buildings, but that over this period specialist knowledge relating to sustainability has become more generally accepted and that this has lead to a transformation of the market as a whole.  He illustrated this point with a quote from Jones Lang Lasalle 2011 Perspectives on Sustainability report:

“Five years ago, a corporate real estate executive might have thought sustainability was a costly way to make the company look good to employees. Two years ago, that same executive probably focused on energy management as a way to save money in the short run. Today, he or she may be pursuing green strategies that enhance employee productivity”.

For most companies, property costs are normally amoungst their top three highest costs, along with those associated with employing their personnel.  In striving for value it is essential that the effect that building design has on occupant behaviour is more deeply understood.  Richard made the powerful point that people are the crucial, but until now overlooked, economic component of sustainability.

He reinforced this with the 90% rule; namely that 90% of most organisations environmental impacts come from property occupation, that 90% of most individuals working life is spent indoors and that 90% of whole life costs can be directly attributed to their personnel.

When senior executives are asked about the relationship between productivity and sustainability over 2/3 of respondents expect more sustainable buildings to facilitate their people being more productive, and that these productivity gains represent the largest potential economic benefit that sustainable buildings can deliver.

Economics

While Richard acknowledged that the notion of sustainable buildings commanding a premium is difficult to prove, there is he contends a growing body of evidence that this may be the case.  He presented data drawn for the UK, Europe and the US which quantified this “green premium” at somewhere between 3 and 8%.  He also explored the notion of a “brown discount” where poorly performing stock is financially penalised by the market; demonstrating that increased energy costs could account for as much as £3.00 per square foot.

He posed the question if this approach were applied to occupant productivity what would that do to the value of the best and worst performing examples?  As CBRE identified in their 2011 publication "Sustainability the Great Differentiator", a 10% increase in performance could easily equate to added values equilivalant in many cases to an organisations total rent.  Richard went on to highlight that total staffing costs equate to 10 times total property costs (design, build, operate and maintain) for a building with a typical 30 year lifecycle.

Next Steps

Richard concluded his presentation with his take on what the future may look like. He challenged the way buildings are valued, based on historic performance and taking little or no account of performance in use or wider sustainability issues.  He expressed his opinion that due diligence processes are being adopted by many larger occupiers to properly assess buildings and that this approach provide a good indication of the likely direction of travel of the industry as a whole.

He explored the subliminal messages that property performance conveys about brands and how this association is likely to drive increasing demands for higher performing buildings that reflect wider brand values.  He asked why should customers trust companies who cannot manage their assets and people well and by implication why should they be trusted with our resources?

In thinking about what a brands building says about the way they value their people Richard made the connection between a commitment to sustainability and the ability to build loyalty, engagement, efficiency and pride among its workforce.  As Richard put it:

“if you think it is just about the building, you are missing a giant opportunity”

He finished off his inspirational presentation with a checklist of key actions that should be adopted to ensure more sustainable outcomes:

•         Recognise the importance of performance
•         Understand the limitations of existing standards
•         Think beyond compliance
•         Understand how buildings enhance mission
•         Realise that items with the greatest benefits often have the least costs
•         Anticipate change by reverting to principles

I am left thinking that there is a serious disconnect in the property industry that is directly created in the way that buildings are viewed primarily as investment vehicles and not great place for people to inhabit.

You would have thought that risk averse property investment funds would attach enhanced value to lower risk, more sustainable buildings, however to date this has not been the case.  Similarly, occupiers must demand buildings that can demonstrate that they have been conceived specifically to enhance occupant performance.  Finally, developers must select design teams who can demonstrate that they approach their work from a “user centred” philosophical perspective.