EU GPP criteria for Office Buildings

EU GPP Advisory Group, Bern, 26th March 2014

Joint Research Centre, Institute for Prospective Technological Studies (IPTS)

Overview of the presentation

• How the guidance and criteria document work together

• The guidance document

- Aim of the document

- How it is structured

• The criteria document

- The procurement activities it covers

- Criteria areas by activity

• Outlook on next steps in the process

Inspiration: SCI Network guide How can we better relate the criteria to the process?

GPP Office buildings The Guidance document

Aim: To provide procurers with orientation on how to effectively integrate the GPP criteria for office buildings into the procurement process Why? The form of procurement can have a significant influence on the outcome. Each type of contract brings with it distinct interactions between the procurer, the building design team, the contractors used and the future occupants and facilities managers.

Major renovations a) more than 25 % of the value of the building structure; or (b) more than 25 % of the surface of the building envelope undergoes renovation;

Guidance document New-build and Major Renovation projects

• Design, construction, servicing and ongoing management

• Main points for integration in the sequence of procurements

Common contract forms that are used in the EU with Reference

to the International Federation of Consulting Engineers'

(FIDIC) contracts for:

- Construction works (B) (Red Book)

- Design and Build (D-B) (Yellow Book)

- Design, Build and Operate (D-B-O) (Gold Book)

- Energy Performance Contracting (EPC) (Silver book)

Guidance document Integrating GPP criteria into procurement

Construction works (red) Design-led process

Preliminaries

Concept design

Detailed design

Procurement

Construction

Post-completion

Client brief

Design team selection Design competition

Tendering (1 or 2 stage)

Appoint lead contractor

Construction process

Demolition contracts

Handover, defects and commissioning Facilities management

Framework call-down

Energy services contracts

Preliminary design options

Preliminaries

Procurement

Concept design

Detailed design

Construction

Completion

Client performance specification

Tendering (2 stage option)

Appoint DB contractor

Construction process

Handover, defects and commissioning

Design & build (yellow) Contractor control over design

Novation of design team

Client selects preferred design

Demolition contracts

Facilities management

Client brief

Detailed performance specification

Tendering (2 stage)

Contract DBOF partner

Construction process

Facilities management

Energy Services Contracts

Negotiate cost, performance and risk

15-30 year LCC

Incentives and upgrades

Preliminaries

Concept design

Procurement

Detailed design

Construction

Post-completion

Design, build, operate (gold) Private sector building service

Energy Performance Contract (silver) Private sector energy services

Energy services are defined according to Directive 2006/32/EC:

‘…a combination of energy with energy efficient technology and/or

with action, which may include the operations, maintenance and

control necessary to deliver the service…

..delivered on the basis of a contract and….proven to lead to

verifiable and measurable or estimable energy efficiency

improvement and/or primary energy savings.’

Supplied by energy service companies (ESCO’s) or under energy

performance contracting (EPC).

Facilities management Private sector services

Facilities management is defined according to EN 15221 as:

‘[the] integration of processes within an organisation to maintain and

develop the agreed services which support and improve the

effectiveness of its primary activities’

‘Primary activites’ linked to ‘Spaces & Infrastructure’ within EN

15221, encompassing activities relating to the

‘..management of accommodation, workplaces, technical

infrastructure and ICT systems…’

GPP Office buildings The Criteria document

Restructured and reviewed in order to reflect the distinct procurement activities and stages in office building development: Design activities o Preliminary scoping and feasibility o Detailed design and applications for permits

Activity on site o Strip-out, demolition and site preparation works o Construction or major renovation works o Installation of energy systems and energy services

Commissioning and management o Completion and handover o Facilities management

1. Preliminary scoping and feasibility

o Creating the project definition o Choosing the site and location o Concept design and options appraisal

Points of GPP integration? o Decisions on renovation v. demolition/new-build o Early cost planning LCC (particularly important in D-B-O)

o A reference office building to form the basis for comparative assessments of improvement options

2. Detailed design, performance and permitting

o Putting together the design team o Specifying performance requirements o Selecting and detailing the design for permitting o Preparing tender documentation Points of GPP integration? o In B contracts design team brief and mix of expertise/experience o In D-B and D-B-O contacts, the performance requirement o In order to stimulate innovation a design competition can be used

A. Selection of the design team and contractors

A1. Competencies of the project manager and design team o Pre-selection procedure for the lead contractor or where design

team is procured A2. Competencies of the lead contractor, specialist contractors and /or property developers o Pre-selection procedure for lead contractor and/or specialist

contractors e.g. demolition, ESCo o Data from third party or post-occupancy auditing, performance

monitoring Notes Evaluation assumes an experienced evaluation panel e.g. including project manager

B. Detailed design and performance requirements Energy related criteria

Technical specifications

B1. Minimum energy performance - Basis in Cost Optimal performance

B2. Lighting control systems - Features not addressed in NCM’s

B3. Building Energy Management

System - Intelligent systems and data collection

B4. Low or zero carbon energy

sources - Highly efficient or renewable sources

Award Criteria

B6. Minimum energy performance - Stretch performance on B1

B7. Low or zero energy sources - Stretch performance on B4

1: Is there experience with more ambitious criteria for renovations? o Existing buildings usually D rated EPC or worse o Options? - Cost effective improvement >2 EPC bands (IPF 2013) - Detailed energy modelling essential

2: What guidance should we provide for the award criteria? o New-build standards at different levels in MS o Options? - Increments in EPC or kWh.yr/m2

- or ‘Near Zero Energy’ as a ceiling - or Cost Optimal NZE levels for climate zones (Ecofys 2013)

GPP AG discussion points Setting more ambitious energy criteria?

B. Detailed design and performance requirements Resource efficient construction

Award criteria

B8.1 Performance of the main

building elements - Two options with variations for each: EPD (2) or LCA (3)

B8.2 Incorporation of recycled

content - 15% (Core) and 30% (Comprehensive) with re-use

Annex

1. Guidance for aggregating EPD’s

2. Carrying out an LCA analysis

3. Brief for LCA technical evaluator

Renovation example, WRAP (UK) Elizabeth II Court, 1960’s Local Authority office

before

after

Award criteria based on two broad options: Option 1: Use of Environmental Product Declarations (EPD’s) Option 2: Carry out an LCA study Their use relies on there being comparability – scenarios: o Tenders will be compared against a reference building; o Designs submitted by tenderers will be compared in a competition; o Where an LCA-based calculation tool is prescribed. Annex provides rules to ensure comparability of bids and provide a brief for technical evaluation.

Explanatory point Streamlined use of LCA in procurement

Can the overall approach as presented be workable? In terms of the general approach…. - Allowing normalisation, weighting and aggregation? - Acceptable prescription of rules and a technical evaluator?

GPP AG discussion points A streamlined, flexible approach to LCA

B. Detailed design and performance requirements Other environmental criteria

Technical specifications

B6. Recycling facilities - Designation of space in the design

B7. Water saving installations - Link to other EU GPP criteria sets

B. Detailed design and performance requirements Quality of the office environment

Technical specifications

B5.1 Thermal comfort conditions - EN 15251 or equivalent (I or II)

B5.2 Daylighting and glare - Daylight Factor and glare (EN 12464)

B5.3 Ventilation and air quality - Clean air intake and filtration (EN 13779)

3. Strip-out, demolition and site preparation works

Points of GPP integration?

o Stripping out contract C&D waste re-use and recycling + monitoring systems

o Demolition and clearance contract possible treatment of hazardous waste and close loop re-use/recycling of materials

o Preparation of buildings for renovation

o Demolition and clearance of sites

o Site preparation works

C. Strip-out, demolition and site preparation works Demolition plan to minimise waste

Technical specifications

C1. Demolition waste audit

and management plan - 55% (Core) and 70%

(Compehensive) by weight - Structure and fit-out elements - Hazardous waste risk assessment - Bill of quantities and methods for

recycling and re-use - On-site monitoring/accounting

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4. Construction of the building and renovation works

Points of GPP integration? • In D-B and D-B-O contractor is selected at an earlier stage • In a B contract, monitoring and reporting is required to ensure the

contractor is meeting the tender specification - e.g. site waste management, sustainable sourcing of wood

o Selecting the main construction contractor

o Commencement of work on site

o Monitoring of contract clauses

D. Construction or major renovation works Monitoring and reporting of activity on site

Technical specifications

D1. Responsible sourcing of wood

construction materials - 25% (Core) 70% (Comprehensive)

sustainable sourcing

D2. Site waste management - 11t (Core) and 7t (Comprehensive) per 100 m2 office

D3. Selection of fit-out materials

and finishes - Testing to minimise emissions of VOC’s, SVOC’s and carcinogens

D4. Installation/commissioning of

building energy systems - By reference to EN, ISO or equivalent standards for systems

Contract Performance Clauses

D5. Low/zero carbon energy sources - Connection/commissioning

D6. Incorporation of recycled content - Reporting

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5. Installation of energy services

Points of GPP integration?

o An opportunity to invite the market to bring forward low or zero carbon emission technologies.

o The commissioning of energy services should be monitored

o Identification of low or zero carbon energy technologies

o Decision to transfer risk to third party

o Selection of ESCo providers

E. Installation of energy systems/supply of energy services Third party investments under EPC/ESCo arrangements

Technical specifications

E1. Heating systems including CHP - Reference to EU GPP criteria sets for CHP and heating systems

E2. Installation and commissioning

of building energy services - By reference to EN, ISO or equivalent standards for systems

Award criteria

E3. Low or zero carbon energy

sources

- Invitation to providers to maximise

environmental benefits

6. Practical completion and handover

Points of GPP integration? o Building manual and handover training BEMS, lighting controls o Testing the integrity of the building fabric against design

performance o An upgrading plan could also form part of a D-B-O contract.

o The building manual and handover training o Testing of the building fabric performance o Upgrading plans

F. Practical completion and handover Quality control and instructions on how to use systems

Technical specifications

F1. Quality of the completed

building fabric - Thermal imaging (Core) and air tightness testing (Comprehensive)

F2. Building Energy Management

System - Manual, training and use of user interface

F3. Lighting control systems - Manual, training and BEMS interface

F4. Air quality testing - In-situ sample testing for VOC’s, formaldehyde and particulates

F5. Recycling facilities - Detailed plans of facilities

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7. Facilities management

Points of GPP integration? o ITT for the facilities manager (energy, water and waste

management systems) o In D-B-O consortium long-term facilities management contract o Energy management can be incentivised by introducing incentives

and penalty clauses

o Ongoing management and maintenance of the building o Energy, water and waste management systems o Charging for utilities

G. Facilities management Management systems and efficiency incentives

Technical specifications

G1. Building Energy Management

System - Monthly reporting (Core) trend identification and remedial action (Comprehensive)

G2. Waste management system - Basic segregation systems with monitoring/reporting of arisings

Contract Performance Clauses

G3. Energy performance contract - Mechanism to incentivise energy

management within design parameters

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o Common certification schemes: e.g. BREEAM Europe Commercial (UK, Germany, Netherlands, Poland, Spain, Austria ), DGNB (Germany, Austria), HQE (France) and LEED (pan-EU). o National/regional assessment tools e.g. Enerbuild (Alpine region), GPR Gebouw and Greencalc+ (Netherlands) Is there value in highlighting the potential for co-existence between the EU GPP criteria and existing schemes and tools?

GPP AG Discussion point Refer to existing certifications and tools?

1. Overall energy performance - How to set more ambitious criteria for renovations? - How to define performance-based award criteria? 2. Overall acceptability of streamlined approach to construction materials and EPD’s/LCA 3. Should we refer to existing building assessment schemes? Overall comments on structure and ambition of the criteria?

GPP AG discussion points Summary

Outlook on GPP criteria development

1. Initial feedback from GPP AG

2. Preparation and finalisation of Guidance, Criteria and Technical

Report

3. Wider stakeholder consultation (2011-2012 stakeholder list) plus

SCI Network

4. Inter Services Consultation within Commission

We welcome suggestions on expanding the stakeholder group to

include procurement expertise

Thank you for your attention

Nicholas Dodd

Tel. +34 954 48 84 86

e-mail nicholas.dodd@ec.europa.eu

Elena Garbarino

tel. +34 954 487 179

e-mail elena.garbarino@ec.europa.eu

Contacts