1. Construction economics of sustainability Docent, Dr Arto Saari Helsinki University of Technology Laboratory of Construction Economics and Management Joint Seminar CEEC AEEBS SCS 13 th April 2007 Dublin

2. Arto Saari, 13 April 20072 Construction projects in Finland Main concern construction costs Good solutions from the viewpoint life cycle costs and ecology? No has not been clear rules and procedures Next will be presented results some studies conducted at Helsinki University of Technology

3. Arto Saari, 13 April 20073 FLEXIBUILD Saari, A., Kruus, M., Hämäläinen, A, Kiiras, J., 2007. Flexibuild – a systematic flexibility management procedure for building projects, Facilities, 25 (3/4), 104-114. Saari, A., Kruus, M., Hämäläinen, A, Kiiras, J., 2006. Flexibuild – A systematic flexibility management procedure for building projects. CIB W70 Trondheim international symposium, Changing user demands on buildings – Needs for lifecycle planning and management, 12-14 June 2006, Tore I. Haugen, Anita Moum, Jan Bröhner (eds.), Trondheim, pp. 463-472.

4. Arto Saari, 13 April 20074 FLEXIBILE PROGRAMMING Buildings are not programmed for a single known use but for a selected range of variation for users’ requirements

5. Arto Saari, 13 April 20075

6. 6 Greenhouse gases caused by a typical new Finnish apartment building during 50 years. Source: A. Saari, Environmental impacts of residential buildings, Rakennustieto Oy, 2000 (Finnish language), available in web: http://www.rts.fi/ekotieto.hml

7. Arto Saari, 13 April 20077 Energy management in briefing and design phase Under Nordic conditions, the most effective way of having an impact on the greenhouse gases given off by building during its life cycle is to see that the energy consumption of building during use is reasonable.

8. Arto Saari, 13 April 20078 Project control procedure 1Target setting in project planning phase for construction costs for energy consumption (in use phase) 2Verifying the designs in design phase construction costs heating energy consumption (in use phase) specific LCC-LCA analyses 3Requirements concerning implementations

9. Arto Saari, 13 April 20079 Case project 1: VVO/ASO/Viikki, Helsinki Jan. 2006 *) Tenants can adjust the ventilation of their dwellings *) Analysis:  Buildings are larger than targeted  Construction costs exceed  Heating energy consumption exceed

10. Arto Saari, 13 April 200710 Case project 1: VVO/ASO/Viikki, Helsinki Jan. 2006 *) Tenants can adjust the ventilation of their dwellings *) Analysis:  Ratio gr-m2/ap-m2 is poor  The bay depht of the building is low  Area of balconies is high

11. Arto Saari, 13 April 200711 Case project 2: Physics Department University of Helsinki An examle of the energy management in briefing and design phase of a construction project

12. Arto Saari, 13 April 200712 Case project 2: A target consumption calculation in briefing phase 132 45Total

13. Arto Saari, 13 April 200713 Case project 2: A target vs. designs Estimated heating energy consuption: kWh/gr.fl sqm/yr target 132 esimated from designs 161 difference+29 (+22%) 1. Estimated energy consumption is higher than the target set 2. The reason for the exceeding must be analyzed 3. Then the proposed designs must be developed

14. Arto Saari, 13 April 200714 The researcher suggested the following measures: The architectural designer should reduce the windowed area and look for glass-wall solutions of lower thermal transmittance. The ventilation designer should check the dimensioning of the supply air devices and down­size them, if necessary. Results:  Designs were revised based on submitted development proposals.  Through the development of the design solution, the annual heating energy need was reduced from the 161 to 127 kWh/gr.fl.sqm.  Developed designs can be considered acceptable. Case project 2: The results of cost management

15. Arto Saari, 13 April 200715 An example of eco-economical analysis Includes: description of alternative design solutions calculation of life cycle costs calculation of environmental impacts normalization and weighting of costs and impacts ranked alternatives Source: Saari, A. A systematic control procedure for environmental burdens of building costruction projects. In Construction Economics and Organization, 2 nd Nordic Conference, Göteborg 24-25 April 2001, pp. 107-115.

16. Arto Saari, 13 April 200716 Comparison of facade lattice material: Alternative 1: galvanized steel Alternative 2: aluminium An example of eco-economical analysis

17. Arto Saari, 13 April 200717 Time horizon50 years Selected interest rate4% Repacement cycles: steel latticetree times per 50 years aluminium latticeonce per 50 years An example of eco-economical analysis

18. Arto Saari, 13 April 200718 Sensitivity analysis: If interest rate is 1% or less, or if replacement cycle of steel lattice is four times, then LCC of aluminimum lattice become lower. An example of eco-economical analysis Source: Saari, A. A systematic control procedure for environmental burdens of building costruction projects. In Construction Economics and Organization, 2 nd Nordic Conference, Göteborg 24-25 April 2001, pp. 107-115.

19. Arto Saari, 13 April 200719 The factors influencing the value: weight Life-cycle costs50 % Use of non-renewable materials 5 % Climatic warming (CO 2 equiv.)25 % Acidification (SO 2 equiv.)10 % Oxidants (ethene equiv.)10 % The above weights serve as examples An example of eco-economical analysis

20. Arto Saari, 13 April 200720 An example of eco-economical analysis Source: Saari, A. A systematic control procedure for environmental burdens of building costruction projects. In Construction Economics and Organization, 2 nd Nordic Conference, Göteborg 24-25 April 2001, pp. 107-115.

21. Arto Saari, 13 April 200721 reference levelweights rating of alternatives An example of eco-economical analysis Source: Saari, A. A systematic control procedure for environmental burdens of building costruction projects. In Construction Economics and Organization, 2 nd Nordic Conference, Göteborg 24-25 April 2001, pp. 107-115.

22. Arto Saari, 13 April 200722 The aim of this study was to examine changes in the overall costs of an office when the efficiency of space use is increased. The variable in the examination was a space index, calculated as the floor area per employee. The quality of indoor climate was also a variable in the analysis. An example of Socio-economic analysis Source: Arto Saari, Topi Tissari, Esko Valkama and Olli Seppänen (2006). The effect of a redesigned floor plan, occupant density and the quality of indoor climate on the cost of space, productivity and sick leave in an office building–A case study, Building and Environment, Volume 41 (12), 1961-1972.

23. Arto Saari, 13 April 200723 Cell office (2) Open plan office (3) Initial plan (1) Saari, Tissari, Valkama, Seppänen 2006

24. Arto Saari, 13 April 200724 Seppänen, Fisk, Faulkner 2003 Saari, Tissari, Valkama, Seppänen 2006 An example of socio-economic analysis Models

25. Arto Saari, 13 April 200725 Arto Saari, Topi Tissari, Esko Valkama and Olli Seppänen (2006). The effect of a redesigned floor plan, occupant density and the quality of indoor climate on the cost of space, productivity and sick leave in an office building–A case study, Building and Environment, Volume 41 (12), 1961-1972.

26. Arto Saari, 13 April 200726 An example of socio-economic analysis Results Source: Arto Saari, Topi Tissari, Esko Valkama and Olli Seppänen (2006). The effect of a redesigned floor plan, occupant density and the quality of indoor climate on the cost of space, productivity and sick leave in an office building–A case study, Building and Environment, Volume 41 (12), 1961-1972. The overall cost analysis of a given case building showed that when space use is boosted significantly, measures must be taken to guarantee a sufficient quality of indoor climate. The study indicates that investment in the quality of indoor climate is cost effective when the economic effect of indoor climate to health and productivity are taken into account in addition to the costs of investment, operation and maintenance. Insufficient ventilation without mechanical cooling may cause a substantial loss of productivity. The importance of good ventilation and air-conditioning increases with a more efficient use of space especially in conjunction with high value of work.

27. Arto Saari, 13 April 200727 Contact: Dr Arto Saari Helsinki University of Technology Laboratory of Construction Economics Box 2100 02015 TKK Finland Tel. +358 9 4511 E-mail: firstname.surname@tkk.fi