nia agm 2016

SUSTAINABLE CONSTRUCTION PROCUREMENT IN AN EMERGING

ECONOMY

CHALLENGES & RECOMMENDATIONS

Arc VIVIENNE AMEH-OGBONNA MNIA, PMP, RMP, MCIPS, PRINCE 2

� Content � Definition

� The Triple bottom line

� Why SPC

� Benefits of SPC

� Drivers of SPC

� Challenges & Recommendations

� Building Examples

� Sustainable Procurement in Construction (SPC)

Sustainable Procurement in Construction (SPC) is the process used to secure the acquisition of goods and services (products) in industry in a way that ensures that there is the least impact on society and the environment throughout the life cycle of the project by balancing the the triple bottom line of economy, environment and social justice.

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� The Triple Bottomline

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� Why Sustainable Procurement in Construction

32% of landfill waste comes from construction and demolition of

buildings

13% of products delivered to construction sites for use are left as waste

Economic: Synchronize with the change agenda. The need to minimizewaste, through innovation and creativity!

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� Why SPC in emerging countries � Dwindling price of oil, high interest rates and cost of funds

� Emerging countries are characterized by lack of infrastructure and basic services and sometimes have difficulty in maintaining existing (traditional) infrastructure.

� High levels of inequity between the rich and the poor who are in the majority necessitating more affordable housing with whole life cost benefits

� Although emerging countries consume less resources and emit far less green house gases than developed countries, their environmental degradation has more direct and physical impact on the poor who are more with less ability to absorb the damage.

� Abundance of opportunities to go sustainable with building materials and settlement development.

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� Benefits Environment Developing sustainable buildings minimizes the use of water, raw materials, energy and land. Reduction in carbon emissions, waste and pollution in the environment and protects employees’ health Water conservation: mitigate the risk of water shortage, by featuring systems appliances and landscape that require little water Raw Materials: Focus is not on consumption of natural resources but use of more environmentally responsible products such as recycled or renewable resources. Adopt more durable solutions to increase life span and eliminates waste.

� Benefits Environment

Energy: Sustainable buildings include energy-saving appliances that lower carbon emissions and reliance on fossil fuels. These include solar or hydro energy. Land: Choice of land to build properties in areas where construction will lead to the least possible land degradation and deforestation affect biodiversity or endanger natural wild life while promoting healthy landscaping and preventing erosion. Temperature moderation. Site selection, conscientious building design in building orientation and tree planting Waste reduction: building deconstruction instead of demolition which leads to massive waste production; reuse, recycle eg briquetting.

� Benefits Economic • Cost and Value: High-performing

green buildings provide the best value for the public through both life cycle cost benefits and positive effects on human health and performance. Reduced life cycle costs, with 45% less energy consumption, 53% lower maintenance cost and 39% less water use.

• Energy and waste saving • Increased property values • Decreased infrastructure strain

through minimal exertion on the local power grid and water supply and other local infrastructure.

• Improved Employee attendance and Productivity

� Benefits • Social • Market value and competitive

advantage • Brand reputation: Green

building certification institute (GBCI) and Leadership in Energy and environmental design (LEED) accreditations.

• More engaged stakeholders (internal and external) who identify with the corporate sustainability initiatives

• Healthier life style • Ethical and behavioral outlook

� Drivers 9 Government pressure and

incentives eg tax rebates 9 Customers & competition

pressure 9 Culture change and

increased awareness 9 Risk Management 9 Certification, ISO 14001,

LEED, NEASRA and EIA 9 Rewards & Recognition. 9 Organizational factors 9 Brand identity 9 Market strategy and

competitive advantage.

CHALLENGES & RECOMMENDATIONS

Challenge: Lack of public awareness, understanding, Information & Commitment to sustainability

Recommendation: Incorporate Sustainability in government procurement policies and organizational policies. Create a culture, change values, and consumer preference through school education, trainings and programs like the CPD

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Challenge: Organizational inertia, ignorance of and lack of direction on sustainability issues. Insufficient and inconsistent policies, regulations, incentives and management commitment.

Recommendation: Enact Policies, Laws to drive Organisational commitment, get government commitment. Government incentive like tax rebate to sustainable org.

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Challenge: Measurement of impact of SCP initiatives and linkage of performance to the initiative to show benefits.

Recommendation: Integration of practice and academia to Design of framework for process management through the formulation of key performance indicators peculiar to our culture and in line with best practices.

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Challenge: Impression of high capital outlay in executing sustainable construction procurement practice.

Recommendation: Adopt lean principles plan for SPC from inception to enable waste elimination, avoid structural overdesign, optimize site orientation, eliminate unnecessary finishes. Reuse and Recycle!

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Challenge: Conflict in achieving economic prosperity at the detriment of environmental stewardship and social justice

Recommendation: Explore options like; Economic: first tier suppliers to use smaller businesses (SME) as sub contractors/ consultants Social; contracting with voluntary organization and Environmental; zero use of hazardous materials

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Challenge: Ethical Supply Issues, with respect to corporate social responsibility and behavioral Integrity.

Recommendation: Pressure from end users for SCP, culture change and demand for ethical responsibility down the supply chain causing a ripple effect, for instance the use of fair trade products

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Challenge: Lack of transparency and efficiency in the procurement system in minimizing environmental impacts and increasing social impacts.

Recommendation: Adoption of e-procurement will reduce transaction costs, aid transparency prevent maverick buying, aid better decision making and get value for money.

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Challenge: Default traditional procurement system results in poor relationship management system for sustainable issues

Recommendation: Inclusive and integrated project teams will enable Information exchange and collaboration along the supply chain to aid implementation of sustainable procurement policies in supply relationships

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Challenge: Innovation in building materials and methods is in short supply, and need for alternative to conventional bldg materials

Recommendation: Consider use of agricultural waste products and other biological materials as building materials. More research to enable adaptation (mordernisation) of traditional building practices

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Challenge: Social justice Issue of marginalization of women in the construction industry. Male dominated field.

Recommendation: Recognition of gender discrimination, appreciation of diversity and inclusion of minority would lead to more innovative ideas of achieving sustainability.

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� CONCLUSION “We need to defend the interests of those whom we've never met and never will.” Jeffrey D. Sachs “You can never have an impact on society if you have not changed yourself’.” Nelson Mandela “The greatest threat to our planet is believing that someone else would save it!” Robert Swan

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� CREDITS

Berry, C. and McCarthy, S. (2011). Guide to sustainable procurement in construction. Ciria. London

Mensah, S and Ameyaw, C (2012) Sustainable procurement: the challenges of practice in the Ghanian Construction Industry. ResearchGate. Conference paper

Belfitt, R.J; Sexton, M, Schweber L,and Handcock B (2011). Sustainable Procurement-Challenges of construction Practice. TSBE EngD Conference

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� CREDITS Preuss, L. (2009). Addressing sustainable development through public procurement: the case of local government. Supply Chain Management: An International Journal, 14(3), 213-223.

Walker, H., & Phillips, W. (2008). Sustainable procurement: emerging issues. International Journal of Procurement Management, 2(1), 41-61.

Walker, H., & Brammer, S. (2012). The relationship between sustainable procurement and e-procurement in the public sector. International Journal of Production Economics, 140(1), 256-268.

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� CREDITS Plessis, C Agenda 21 for sustainable Construction in developing Countries. Programme for sustainable Human settlements, CSIR Building and Construction

Sourani, A and Sohail, M., (2011) Barriers to addressing sustainable construction in public procurement strategies. Proceedings of the institution of Civil Engineers: Engineering Sustainability, 164(4). Pp.229-237

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� Thank You!

https://www.linkedin.com/in/vivienne-ogbonna-4744514b I am Vivienne Ogbonna and I am desperately trying to make

common sense!

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Use of local materials in construction and low energy

Built totally on site from sustainable materials

• PROJECT: TUDOR APARTMENTS • LOCATION: MOMBASSA • ARCHITECT: Urko Sánchez • SUSTAINABILE FEATURES: ENVIRONMENTAL, SOCIAL

Harmony with the Environment (local Culture)

�• PROJECT: UMUBANO PRIMARY SCHOOL • LOCATION: KIGALI, RWANDA • ARCHITECT: MASS Design Group • SUSTAINABILE FEATURES: ENVIRONMENTAL, SOCIAL

Totally aligned to landsacpe Built totally on site

from sustainable materials

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Solar panels

Natural Biodegradable material

Recycled barrels

Natural Ventilation • PROJECT: MAKOKO FLOATING SCHOOL • LOCATION: MAROKO, LAGOS STATE • ARCHITECT: Kunle Adeyemi • SUSTAINABILE FEATURES: ENVIRONMENTAL, SOCIAL,

ECONOMIC

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Use of locally made bricks for cooling instead of heat retaining concrete

Wide overhangs that resist rain and allow passive air circulate

• PROJECT: CENTRE FOR EARTH ARCHITECTURE

• LOCATION: GANDO, BURKINASO • ARCHITECT: Francis Kéré • SUSTAINABILE FEATURES: ENVIRONMENTAL, ECONOMIC

Preservation of Landscaping for oxygen and cooling.

• PROJECT: RED PEPPER HOUSE • LOCATION: LAMU, KENYA • ARCHITECT: Urko Sánchez • SUSTAINABILITY: ENVIRONMENTAL, SOCIAL,

ECONOMIC

Use of traditional Swahili solutions

Harmony with the Environment (local Culture)

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Preservation of Landscaping for oxygen and cooling.

Use of locally made bricks for cooling instead of heat retaining concrete

• PROJECT: SCHOOL LIBRARY GANDO • LOCATION: GANDO, BURKINASO • ARCHITECT: Francis Kéré • SUSTAINABILITY: ENVIRONMENTAL,

ECONOMIC, SOCIAL •

� Context Change….

2014 2015 2016

USD 155 197 305.25

MPR 12 13 14

INFLATION

8.6 8.2 17.85

CRUDE 112.75 37.80 47.62

Culled from CBN.Org website

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