A blueprint for reducing waste and cutting costs

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1 A blueprint for reducing waste and cutting costs An average 3-bed unit produces between 5 and 13 tonnes of construction waste. Reducing this could save per unit. Five corporate-level actions and ten site-based quick wins employed by UK house builders to reduce the cost of waste.

2 Significant cost savings can be made by tackling waste WRAP research with UK house builders has found that an average 3-bed unit produces between 5 and 13 tonnes of waste from the structure alone, and as much as 20 tonnes of waste including demolition and excavation activities. By reducing waste allowances on 5-10 key components, and implementing good practice waste management, house builders could potentially see savings of per average 3-bed unit.* The true cost of waste Increases in material prices and landfill tax mean the cost of waste is rising year on year. Landfill tax is currently 56/tonne (April 2011) for non-inert wastes, and is set to increase to 80/tonne by Each skip of construction waste has a hidden cost far greater than just the disposal cost. Disposal cost per skip Labour to move and handle waste per skip Value of wasted materials per skip The total cost of waste materials, labour and disposal costs for a mixed waste 8 yard Builder Skip can be as much as 1300.** Drivers for change As well as the clear economic drivers for reducing waste and waste to landfill, there are also strong regulatory drivers: Site Waste Management Plans (SWMP) Regulations (2008) Environmental Permitting Regulations (2010) Waste Management Regulations (2011) Sustainability is an increasingly important consideration for developers and can influence planning and even purchasing decisions. Taylor Wimpey has approached waste and resources as a cultural change issue. All materials generated throughout the build life cycle are considered to be resources, and only when their value has been considered and discounted will they be considered to be waste. This promotes the sweet spot where cost and environmental issues align. Ian Heasman, Associate Director of Sustainability, Taylor Wimpey Plc * WRAP case studies 2010, 2011 **Amec & Envirowise WRAP is grateful for the assistance of the following organisations - Barratt Developments, Bellway, Berkeley Group, Bovis Homes, Cala Group, Crest Nicholson, Gladedale, McCarthy & Stone, Persimmon and Taylor Wimpey.

3 Top 5 Corporate actions to reduce waste Set a target for reducing waste Assess your current or baseline performance using whatever data are available. Using this and industry averages, you can set a SMART target to reduce waste arisings and/or increase recycling rates. Implement a process to capture project-level data this should be available from your SWMPs and monitor progress. Set requirements in subcontractor procurement documents Procurement wording consistent with your company targets provides clarity on your corporate objectives and motivates subcontractors to offer solutions for reducing waste. Major UK house builders are working with WRAP to revise PQQs, ITTs and contract clauses, committing subcontractors to some or all of the following: Providing waste estimates for SWMPs. Taking responsibility for managing their waste. Following waste minimisation practices. Facing contra-charges for excessive waste. Providing records of waste produced. Following site waste management practices. We have met and exceeded our WRAP target to halve waste to landfill by 2012, achieving an overall reduction in waste per unit of 62% compared to We are now focussed on integrating measurement and waste reduction in the demolition and groundworks phases. Julia Plaskett, Sustainability Manager, Crest Nicholson Many organisations allow subcontractors to share savings made through waste reduction. Supplier days can be useful for generating waste reduction initiatives and informing your supply chain of process changes. Designing out Waste There are significant opportunities to reduce construction waste by optimising the design of standard house types, i.e. through simplification and standardisation. Some of the most cost-effective measures are with the site infrastructure, e.g. through the reuse of site-won materials and specification of innovative solutions such as geosystems and hydraulically bound materials. WRAP has produced Designing out Waste guides for buildings, civil engineering and landscaping, offering practical solutions for implementing the principles of Designing out Waste - Design for reuse and recovery, off site construction, materials optimisation, waste efficient procurement and deconstruction and flexibility. Review existing material supply arrangements Procurement processes have a huge impact on packaging and product waste on site. There are a number of areas to explore: Take-back schemes for surplus products. Bespoke ordering to match designs. Innovative (low waste) product and packaging solutions. Packaging take-back and reusable packaging. Reviewing supplier-led take offs for excessive surplus materials. Assess current Waste Management Contractor performance The quality and consistency of data provided by WMCs can be addressed by specifying requirements when procuring services, rationalising the number of providers used, and carrying out regular audits. Sheffield Homes re-evaluated their WMCs and enjoyed significant cost savings as a result. We have recently concluded a deal with a PVC-UE supplier that is not only competitive but delivers up to 17% savings through innovative wastage control and better fitting practice. These are the solutions we want to replicate elsewhere in the business. Martin Sanwell, Group Procurement Director, Gladedale Group

4 Top 10 Site-based quick wins to reduce waste Prepare a SWMP early and act on it 6 Since April 2008 there has been a requirement for any project in England with a construction spend of over 300,000 to have a SWMP in place. Studies have shown that, if developed at the planning stage, SWMPs are an effective vehicle for identifying and driving cost savings. The later they are developed the more likely they are to incur net costs. Reuse of demolition and excavation materials Pre-demolition audits can save money by extracting maximum value from on site resources. The WRAP Quality Protocol facilitates the production of aggregates from inert demolition wastes. WRAP studies found that excavation wastes can comprise as much as two-thirds of the tonnage arisings per unit. The CL:AIRE Code of Practice on the Definition of Waste can facilitate the reuse of soils, avoiding the need for disposal as waste. The BSI PAS 100 specification for composted materials offers a way for developers to improve the quality of soil making materials on site, rather than removing them and importing topsoil. Toolbox Talks for site staff Ensure trades and employees are sufficiently trained to deal with the proper disposal and management of waste. Regular Toolbox Talks and clear signage for site personnel can help ensure company/site procedures are understood and followed. Material ordering and supply Over-ordering can be a significant cause of waste. Excess material left on site is at risk of being damaged by site traffic or through exposure to the elements, and can present a health and safety risk. Plan deliveries to prevent the build-up of materials. Call-offs and even plot lot ordering are being trialled by house builders to reduce waste. Storage and handling of materials Various material logistics strategies employed by Berkeley Homes on phase 4a of Holborough Housing Development reduced waste by 33% compared to previous phases. Areas of opportunity include: Pre-planning the placing of sand, aggregates and other loose materials. Delineated and well planned storage areas with special provision for weather-sensitive and fragile materials. Alternative handling mechanisms (e.g. HIAB cranes) and bonus schemes for forklift drivers. During construction protection can be used to prevent damage once installed, for example on stairs and sanitary ware. This year we have saved more than 550,000 in landfill tax by reusing 13,843 tonnes of demolition material on sites. Bellway Plc, Stakeholder Engagement - Waste Section What is striking is the opportunity to identify a waste reduction measure at one site and then export that approach to other sites within the company. The resultant savings are multiplied accordingly. Paul Haxell, Group Environment Health & Safety Manager, Bovis Homes We have seen some significant cost savings from good waste segregation practice, pallet retrieval and cardboard baling. It s vital to get the whole business and not just individual sites motivated. John Adams, Group Procurement Director, Barratt Developments Eliminate Reduce Reuse Recycle Dispose Cutting stations for sawn products Dedicated cutting stations for 1st or 2nd fix carpentry, plumbing (or other appropriate trades) have been shown to reduce wastage by avoiding costly re-work, and by facilitating the reuse of offcuts. Separating offcuts also assists with segregation and waste management. Reuse of construction materials Where possible, usable off-cuts should be reused in the build, either for their original purpose or in a different application. Look into supplier take-back or even donating usable materials to voluntary organisations as this avoids the need to dispose of the materials as a waste. Waste management and segregation Segregation reduces the risk of cross-contamination and associated penalties. Segregated skips will generally cost far less to remove than mixed waste skips. Studies by WRAP found that colour-coded waste chutes and small waste containers close to the area of work resulted in significantly better segregation, higher recycling rates and reduced waste disposal costs. Timber can represent up to 50% of construction waste (by volume). Well segregated timber skips are collected free of charge by wood recyclers. Some waste streams will even generate revenue. Compaction of wastes to reduce volume On site balers and other compaction equipment can be used on larger sites to save skip space and generate additional revenue. Cardboard bales sell at 120 per tonne, and polythene from per tonne (Sep 2011) historic highs. Studies by Knauf and Barratt Developments have shown that chipping plasterboard on site can reduce waste volumes by up to 32% from standard practice. Timber can also be chipped to create a landscaping mulch. Accurate waste measurement Maintaining a record of waste transfers can fulfil more than just a legislative requirement. Comparing actual waste arisings against the initial forecast helps to inform future decision making and identifies areas for performance improvement. It is also useful to compare waste data between sites to identify good practices that can be replicated. Your consolidated waste data can also be benchmarked against industry averages. The waste hierarchy Provides a framework for prioritising actions according to their potential to impact on your bottom line. Eliminating waste is more cost-effective than recycling, which is in turn cheaper than disposal.

5 Visit for free tools and guidance. Search for: Construction procurement guidance Benchmarks for target setting Site Waste Management Plans Logistics Reducing waste on site Designing out Waste Waste measurement and reporting guidance BSI PAS 100 Compost AggRegain Trade-specific guidance Contact WRAP If you would like to discuss how your company could cut costs by reducing waste, please contact Richard Martin. Telephone: 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 detail, please refer to our Terms & Conditions on our website at Printed on 100% Recycled Content Paper