Industrialised, Integrated, Intelligent sustainable Construction - I3con

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SUSTAINABLE CONSTRUCTION HANDBOOK 2 202 ‘the output’ ‘the hardware’ high high energy energy costs costs thermal processing chemical processing Social & environmental processes social & environmental condition monitoring Impact on user processes & clients business User processes User process & requirements monitoring Building performance monitoring Operational Services & Dynamic Control main assembly module assembly component manufacturing minimal use of new base materials and energy Buildings in operation light maintenance module reuse module remanufact. component reuse component remanufact. material reuse material remanufact. material reuse material reuse main disassembly module disassembly component destruction minimal use of natural resources minimal waste Value Creation Process Production & <strong>Construction</strong> Process Production of Base Materials Figure 9. The process of a Living Building provider aims at reducing costs and use of natural resources in the construction process (red) and the increase of client value (blue) The top of Figure 9 shows, with blue arrows, the value creation process. The goal of this process is to anticipate changing client and user needs, so that adequate solutions can be developed as part of the product, the service, or both. This process is supported by three monitoring functions: (a) the monitoring of social and environmental conditions that may affect user processes and perceived building performance, (b) the monitoring of actual user processes, and (c) the monitoring of actual building characteristics and performance. A building can only be kept fit-for-use if its perceived performance remains high. Factors that affect perceived performance are fashion and market trends, new social insights and new technologies. Further, buildings such as schools, retail centres, airports, hospitals, hotels, offices and also houses support processes that may frequently change, perhaps even every 5 to 10 years. Financing and Value Creation The long term capital value of Living Buildings will be substantially higher than that of traditionally built buildings. Figure 10 shows the capital value of a building with an estimated lifetime of 50 years.
HANDBOOK 2 SUSTAINABLE CONSTRUCTION Traditional buildings have to be demolished, so that they end up having negative value near the end of their life (Figure 10 top). Remanufacturing turns 'waste' into a capital resource for the production of new buildings (Figure 10 middle). If combined with regular vitalization, a Living Building will remain always fit-for-use, and thus retain a high capital value during its entire (indefinite) functional life. This has two major implications for financing. The first is that the risks of investments in Living Buildings are substantially lower than in traditional buildings. A Living Building can be modified according to changing user needs, it can be given a new function, and it can even be disassembled and rebuilt on another location if needed. Its sustained value is important because it serves as collateral for the creditor. If the long term value of the collateral is insecure, or if there is simply no market for it, the creditor risks a heavy loss on this loan in case the lender goes bankrupt. This risk is normally compensated by asking a high interest on the loan. As a Living Building may be perceived as a less risky investment, a lower interest rate on the loan may be negotiated with the creditor. This will reduce the lifecycle costs of the building. Initial construction + capital value of traditional building demolition T=0 jr T=50 jr Initial construction capital value of remanufacturable building T=0 jr T=50 jr Initial construction capital value of living & remanufacturable building vitalization vitalization T=0 jr T=50 jr Figure 10. The capital value of a building as a function of time, (a) for a traditional building, (b) based on remanufacturing at the end of functional life, and (c) for a Living Building The second implication is that Living Buildings do not have to be written off, and that they may even rise in value compared to new but traditionally built buildings. The reason is that it is very likely that in the near and far future natural resources and energy will cost more than today. It has been mentioned in section 3.3 that the production of new materials from fresh resources, or the recycling of existing materials, requires much energy. This energy can be saved if materials and components are designed for reuse. Given the fact that material resources on planet Earth are finite, the long term value of such reusable materials and components will grow more rapidly than interest on a bank account. The amount of money in the two main economic zones, the US and Europe, grows on average between 8 and 10% per year. But only that what can be bought with money determines its real value, and the amount of available material resources does not grow at a similar rate. - vitalization disassembly & remanufacturing 203
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Industrialised, Integrated, Intelligent sustainable Construction - I3con

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