Best Practice Construction Waste Procurement: Office Fit-Out of 15 Canada Square, Canary Wharf

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1 Waste procurement case study Best Practice Construction Waste Procurement: Office Fit-Out of 15 Canada Square, Canary Wharf This case study examines how engagement between the main contractor, client and subcontractors helped to surpass the target of diverting a minimum of 90% of waste from landfill.

2 Best Practice Construction Waste Procurement: Office Fit-Out of 15 Canada Square, Canary Wharf 2 Background Interior Services Group (ISG) Plc has been delivering new build, refurbishment and fit-out services to UK and international clients since In 2008 ISG were commissioned by KPMG to fit-out their new office building at 15 Canada Square, London. Early engagement between the client and ISG meant waste was considered from an early stage. A project target of 90% diversion of waste from landfill was set by the client, and during subcontractor procurement environmental performance (including waste management) was an integral part of the process. Interior Services Group Plc ISG delivers new build, refurbishment and fit-out services throughout the UK, Europe, the Middle East and Asia. ISG are committed to upholding their company values and delivering a consistently high quality service regardless of project size, scope and geographic location. Since their inception in 1989, ISG have developed an in depth understanding of their clients needs and the market in which they operate. As a result, ISG are able to provide their clients with a flexible and responsive service for small to large scale projects. Since 1989 ISG have delivered around 2,700 large scale projects and regularly deliver around 30% of all fit-outs in London each year. Their fit-out portfolio contains some of the world s most respected national and international organisations. ISG is a signatory of WRAP s Construction Commitments: Halving Waste to Landfill. By 2012 the company aims to have reduced its waste to landfill from its 2008 baseline position of 0.72 tonnes to 0.36 tonnes for every 100k spent on a project. ISG s 2009 result of a 32% reduction of waste to landfill demonstrates that the company s 2012 target is clearly achievable.

3 Best Practice Construction Waste Procurement: Office Fit-Out of 15 Canada Square, Canary Wharf 3 ISG works with its clients, designers, site teams, subcontractors and waste contractors to minimise the waste produced on projects as well as improving site segregation and waste recycling rates. Lucy Hall, Sustainability Manager, ISG. Project details Project Gold is an office fit out of KPMG s new headquarters at 15 Canada Square, Canary Wharf. The building, designed by international architects KPF is a 15 storey steel framed structure clad in high-efficiency solar-control glass featuring a full-height atrium space. The office fit-out was over 14 floors and 4 basement levels, including the atrium, hospitality areas and parking facilities. The project employed 26 main trade contractors covering all aspects of an office fit-out embracing activities from raised access flooring, stone flooring, dry walling, building works, ceiling finishes, mechanical and electrical services, decoration, joinery, blinds and signage. ISG carefully sequence fit-out works to ensure waste generation is minimised and maintain a presence on site to monitor waste recovery practices. Procurement of subcontractors The environmental advantages of early engagement Engagement between the client, KPMG and ISG to plan and prepare for the project began over a year before the fit out. A number of objectives, targets and implementation mechanisms were agreed, including a number on waste management and were included in the Project Gold Sustainability Charter. All subcontractors must sign the Charter to demonstrate their commitment to ISG and KPMG s Sustainability Management Plan.

4 Best Practice Construction Waste Procurement: Office Fit-Out of 15 Canada Square, Canary Wharf 4 This included a target of 90% diversion of waste from landfill which was to be achieved through a combination of waste minimisation and the utilisation of all practicable opportunities for on site segregation in order to maximise reuse and recycling. To help meet this target KPMG and ISG agreed that all trade contractors were required to propose waste minimisation initiatives in their tender returns. The ability of the trade contractors to contribute to the environmental and waste management objectives of the project was also examined during interviews in the procurement process. This ability to contribute to the environmental objectives of the project was worth 20% of the tender score during the selection process. ISG and their preferred waste management and logistics supplier, Multi Services Kent (MSK) Ltd, began deliberation on waste management during the bidding process. Continued engagement between ISG and MSK during project planning and at key milestones helped to improve waste performance. Before work began on the fit out, ISG and MSK worked together to identify waste streams and arisings, potential waste management routes and the processes required to effectively segregate and collect waste. This desk-based exercise helped to inform the site waste management plan developed for the project. Another outcome of the engagement was the identification of raised floor tiles as a major waste stream and the introduction of a pioneering takeback and recycling scheme between MSK and the manufacturer. Approximately six weeks into the fit out an interim review of waste management and segregation of materials on site was undertaken by ISG and MSK with the main trade contractors. As a result of this review, a compactor for packaging waste was supplied to the site and site specific know your waste information material was produced for display on site and to use for educational purposes during site operative inductions.

5 Best Practice Construction Waste Procurement: Office Fit-Out of 15 Canada Square, Canary Wharf 5 Figure 1 Know your waste information resource ISG continued to engage with trade contractors on waste management after the selection process. A series of waste workshops with all trade contractors were carried out to reaffirm the project s waste management objectives. The presence of senior management from ISG at all the workshops emphasised the level of importance placed upon effective waste minimisation and management. At the workshops subcontractors were encouraged to consider further opportunities for waste reduction or recovery. As a result a number of trade contractors identified opportunities to reduce waste from prefabrication of components and systems to securing agreements with their supply chains to reduce or takeback packaging materials. Asking contractors to further consider waste minimisation initiatives can also have far reaching effects further along the supply chain. By securing agreements with our supply chain during procurement, we achieved an estimated reduction in packaging of 70% - material which otherwise would have ended up in our waste stream In addition it has opened our supply chain s eyes to alternative solutions for packaging & delivery. Marcus Wallis, Project Operations Manager, Skanska, Mechanical Services Contractor.

6 Best Practice Construction Waste Procurement: Office Fit-Out of 15 Canada Square, Canary Wharf 6 Service assessment Key findings Engagement with the client provides an opportunity to consider waste generation from an early stage. Environmental objectives can be discussed and stretching, but realistic, targets agreed. Consideration of waste during the procurement process and early engagement, through initiatives such as the waste workshops, are key to achieving buy in from subcontractors and maximising waste reduction and recovery. Requesting contractors to further consider how they can contribute to diverting waste from landfill can result in significant waste reduction improvements for some waste streams. In one example, packaging waste was reduced by an estimated 70% by one contractor which secured agreements with their supply chain. It is also worth noting that the waste reduction benefits of this engagement were not limited to Project Gold the contractor also benefited from reduced waste generation and the supplier from lower packaging requirements. Benefits The main environmental benefit of early engagement with the client was the development of shared objectives for the project. A demanding target of 90% diversion of waste from landfill was agreed between KPMG and ISG. This target was included in the Project Gold Sustainability Charter which established a focus and goal for all involved in the fit-out. Early engagement with subcontractors through the procurement process encouraged them to further consider initiatives to reduce or recycle waste. Crucially this allowed time for subcontractors to revisit designs and engage with their own supply chains.

7 Best Practice Construction Waste Procurement: Office Fit-Out of 15 Canada Square, Canary Wharf 7 As a result, early engagement with both the client and contractors by ISG has contributed to Project Gold exceeding the diversion of waste from landfill target achieving a project average diversion rate of 95.4%. In total, over 763 tonnes of waste material has been diverted from landfill. Using a simple conversion factor of 2:1, and excluding inert wastes, it is calculated that approximately 150 tonnes of carbon dioxide equivalence has been avoided by maximising waste reuse and recycling. Conclusions Early engagement by construction contractors with their clients and supply chains can result in a number of environmental advantages. Some materials, such as packaging, can be prevented from even entering the project s waste stream by initiatives including improved design, removal at an off site workshop or assembly facility, or returned to the manufacturer for reuse. Prefabrication of components or systems can also contribute to the minimisation of waste generated on site, in addition to reducing required on-site activity. Purposeful engagement with contractors can also improve waste segregation and recycling performance on site. All subcontractors signed the Project Gold Sustainability Charter and were made aware of the project target to divert 90% of waste from landfill which helped to develop shared goals. ISG also used contractor waste workshops and weekly meetings to facilitate buy in by subcontractors which positively impacted on waste recovery. Finally, early engagement with the waste management contractor can have significant benefits for waste planning and performance. ISG and their preferred waste management and logistics contractor MSK began considering the likely types and quantities of waste generated by the project during the bidding process and worked in partnership to develop the site waste management plan. The waste management and logistic service was subject to an interim review once the project had begun, which identified further opportunities to improve waste minimisation and recovery. The interim review also led to the production of site specific know your waste information material for display on site and for waste education purposes during site operative inductions.

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