Defence sector: recycling waste in construction Defence Estates Regional Prime Contract East, Babcock DynCorp

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1 Case study Defence sector: recycling waste in construction Defence Estates Regional Prime Contract East, Babcock DynCorp By thinking Best Value, not Least Cost when reviewing the way they procure and manage framework contractors and waste management services for their Regional Prime Contract with Defence Estates, Babcock DynCorp have achieved a 34% increase in waste recovery. They have also managed to save money in the process. Background Babcock DynCorp are a joint venture Regional Prime Contractor (RPC) supporting Defence Estates in the provision of maintenance services ( Core Services ) for 47 Ministry of Defence (MoD) establishments across the Eastern Region. Benefits Better waste management on maintenance works has saved up to 12,000 per annum. Talking to framework contractors about waste has led to more segregation, improved data reporting and less waste to landfill. Improved waste data reporting has enabled targeted actions for waste management on each site. Actions taken by Babcock DynCorp help in meeting Defence Estates commitment to the sector goal of halving waste to landfill by As well as these Core Services, Babcock DynCorp provides Capital Works, which are larger projects with the potential to generate large volumes of construction, demolition and excavation (CD&E) waste. Due to the difference in scale, value and nature of these Core Services and Capital Works, waste is managed in different ways appropriate to the size and scale of the project. However, the targeted outcomes are the same: greater resource efficiency, less waste to landfill and better value. One benefit realised by Babcock DynCorp is the improved support and waste reporting they are receiving from their supply chain. This helps them meet and report against their commitment to a voluntary agreement to reduce construction waste, agreed by all members of Defence Estates Supplier Association. Halving Waste to Landfill

2 Construction Commitments: Halving Waste to Landfill Defence Estates was one of the first signatories to the sector-wide Halving Waste to Landfill Commitment ( which supports the Government policy target to halve the amount of CD&E waste going to landfill by The agreement implements this objective, and a number of RPCs (including Babcock DynCorp) are signatories to the Commitment in their own right. The actions of the Commitment are summarised below: We commit to playing our part in halving the amount of construction, demolition and excavation waste going to landfill by We will work to adopt and implement standards for good practice in reducing waste, recycling more, and increasing the use of recycled and recovered materials. We will: set a target for reducing waste to landfill; embed the target within corporate policy and processes; set corresponding requirements in project procurement and engage with our supply chain; measure performance at a project level relative to a corporate baseline; and report annually on overall corporate performance. What have they achieved? By focusing on Core Services and Capital Works separately, Babcock DynCorp have managed to benchmark waste arisings from each work stream individually, giving better information on performance and enabling them to address specific challenges. The 10k - 12k per year savings on disposal cost have been achieved through greater segregation of waste on site into higher value streams. Cost savings from sending less waste to landfill will continue to grow as the Landfill Tax rate climbs over the next few years. Table 1: Landfill Tax escalator to 2013 for non-inert wastes /tonne /tonne /tonne /tonne /tonne /tonne /tonne Babcock DynCorp achieved a recycling rate, across the whole RPC East, of 79% during FY07/08. In FY08/09, their recycling rate increased to 81%, following the introduction of a revised waste management scheme halfway through that year. The last two quarters of FY08/09 reported 86% and 87% recycling rates respectively. How have they achieved it? Babcock DynCorp developed and implemented a Sustainable Development Management System (SDMS) and gained registration (ISO 14001) from a third party certification body. This integration of the SDMS with the quality management system ensures that sustainability and environmental requirements such as resource efficiency and waste management are an integral part of all project deliverables and meet with MoD Sustainable Development policies. Using the SDMS as a delivery mechanism, the RPC has applied a number of methods to deliver resource efficiency and better waste management, and these are outlined overleaf. 34% reduction in CD&E waste to landfill 10,000-12,000 cost savings per year for Core Services

3 Supply Chain Management All suppliers now take part in a Pre- Qualification Questionnaire process before they are considered for use on contracts. This focuses on each supplier s Environment, Health & Safety and Quality processes, and includes arrangements for waste management as well as environmental policy, Environmental Management Systems and legal requirements. Suppliers that do not meet these strict criteria are not approved for the supplier list. RPC East also works with 20 major framework contractors who are continually assessed against key performance criteria; including their contribution to waste minimisation, site waste management plan (SWMP) compliance, and data reporting within the SDMS process. A minimum level of achievement is required to remain within the framework, and Babcock DynCorp work with these suppliers to help drive continuous improvement and create a more sustainable supply chain. The RPC provides general and specific training on waste management, WRAP-facilitated training on Designing out Waste, as well as toolbox talks. Toolbox talks play a major part in the continuing effort to raise awareness of waste within the workplace, and are carried out on a regular basis with all administrative, technical and skilled operative staff. An example of the work carried out with suppliers is the first RPC East Sustainability Conference, held in May The conference focused on practices introduced over the previous three years and future plans to support the green agenda. This reinforced one of the strategic goals of Defence Estates in building and maintaining an estate for the MoD which encourages best practice in the delivery of sustainable solutions. Procuring better performance By applying the SDMS to their procurement processes, supply chain partner assessments and the whole project life-cycle, Babcock DynCorp have been able to influence the key decision-making processes which contribute to waste management. They have also introduced a whole-life philosophy to the construction and building maintenance programmes of Best Value, not Least Cost. This is applied to the Core Services and Capital Works in different ways to reflect the level of management required for each.

4 Babcock DynCorp Core Services The Core Services business (providing building maintenance services up to 2.5K in value) is delivered in-house by Babcock DynCorp Management Services. In June 2008, the waste management contracts in the south of the region were renegotiated. A stipulation in this new contract was to move away from a single general waste skip and separate fluorescent lamps coffin to a solution tailored to site-specific needs. Targets have been put in place to reduce the amount of waste produced and landfilled. Following a successful trial on three sites in the southern area of the RPC, the new scheme was rolled out across the southern half of the region, involving the segregation of waste at source by the maintenance teams. The waste now segregated for recycling includes metal, wood, WEEE, batteries and waste oil. Larger receptacles are also in place for fluorescent lamps, cardboard, paper and paint. Previously waste management and reporting was provided individually for each site by the Facilities Management teams, which led to large volumes of data and variations in the quality of information received. Through the procurement of the new waste contract and the setting of Key Performance Indicators (see Box), not only has recycling and recovery been improved, but reporting of waste data has also improved dramatically, allowing better waste management specific to the project needs. Some of the Key Performance Indicators for waste management contractors are: monthly report received electronically in a spreadsheet format detailing the previous month s figures; all waste containers clearly marked with the waste stream and signage replaced when damaged or unreadable; waste management contractors proactive in making recommendations for managing waste and looking for more cost-effective solutions; and quarterly review meetings to discuss performance which should include a waste stream evaluation provided by the contractor. Following the successful trial of this waste management procurement process, RPC East has now rolled out this programme to all areas. This has provided better recovery rates, value, service certainty and quality as well as delivering better performance across the RPC as a whole.

5 Babcock DynCorp Capital Works For projects greater than 2.5k in value, the whole-life approach of Best Value not Least Cost has also been applied. Babcock DynCorp work closely with their framework contractors and the client, Defence Estates, to achieve sustainability through the life of the project from inception to project handover and review (see Figure 1) to achieve continuous improvement. This cradle to grave approach also considers the operational and demolition phases of the asset where there can be many hidden costs. Figure 1: Waste in the project management Handover Review 5 Project Delivery 4 Project Design 2, 3 Continuous Improvement Inception 1 Project Funding The waste management steps within the Project Manual are: 1. Sustainability check list or full assessment 2. Design Option Review undertaken 3. SWMP development incorporating specific KPIs 4. Relevant data reported in a Waste Register 5. Corporate reporting to Defence Estates and Babcock International Group Infrastructure Division. Babcock DynCorp uses the following methods to identify and record environmental and sustainability impacts and potential mitigation options on all projects above 2.5k in value, as appropriate: 1. Defence Related Environmental Assessment Methodology (DREAM) Babcock DynCorp has a role in ensuring that the DREAM is applied to relevant projects, and that statutory Environmental Impact Assessments are identified if appropriate. 2. Sustainability Appraisal Checklist this is completed on all works valued between 2.5k and 100k. 3. Sustainability Appraisal Project Managers carry out a full Sustainability Appraisal for projects greater than 100k in value, or for projects that may have large detrimental or positive impact on environmental, social and economic issues. All three methodologies deal specifically with waste and material resource efficiency as well as other environmental and sustainability criteria, embedding them within the project management process. Babcock DynCorp also manages demolition projects within this whole-life management approach. Where suitable, materials are segregated for reuse within the Regional Prime Contract such as crushing and screening brick and concrete from demolition activities for use on access roads. If materials are not suitable or not required for immediate reuse, they are sent off site for processing and reuse elsewhere. From a whole-life viewpoint, CD&E wastes are significant in volume, but form only a part of the total waste associated with the construction and operational life of the defence estate. By applying these sustainability approaches to the project management process, Babcock DynCorp ensures that waste forms part of the thinking throughout the concept design, delivery and operation of the Defence Estate.

6 What are the key lessons learned? Accurate measuring and reporting is important Quality of data is central. Initially, by not having sufficient reporting on waste performance tied into the contractual Prequalification and Invitation to Tender process, Babcock DynCorp struggled to obtain frequent and robust information on waste. By improving this reporting process and getting better information, they are now better able to manage waste issues which affect the recycling and landfill rates. One size may not fit all A single approach doesn t always work for the whole business. Different types of works such as Core Services and Capital Works may require different approaches to waste management. Babcock DynCorp procures their Core Services waste package through a number of framework providers who feed information back into the process of waste management based on the materials arising. For the Capital Works projects, a more robust whole-life methodology is applied to the project to ensure that the team not only minimises and manages CD&E wastes, but also considers how the design of the project will impact on the operational life of the asset and the operational waste generated. Best Value, not Least Cost By moving away from the cheaper solutions to a best value, partnering relationship with key suppliers, Babcock DynCorp have been able to refine their processes. By delivering training and workshops for all involved, they are able to deliver an increasingly effective solution to Defence Estates. This approach has led to innovative solutions, where everyone involved realised that a little capital expenditure could give rise to a large cost saving over the life of the assets. This approach holds true in the planning for waste minimisation, as well as during construction. While steps have been taken to ensure its accuracy, WRAP cannot accept responsibility or be held liable to any person for any loss or damage arising out of or in connection with this information being inaccurate, incomplete or misleading. This material is copyrighted. It may be reproduced free of charge subject to the material being accurate and not used in a misleading context. The source of the material must be identified and the copyright status acknowledged. This material must not be used to endorse or used to suggest WRAP s endorsement of a commercial product or service. For more details, please refer to our Terms & Conditions on our website Waste & Resources Action Programme The Old Academy 21 Horse Fair Banbury, Oxon OX16 0AH Tel: Fax: info@wrap.org.uk Helpline freephone