4.2. Circular construction actors and stakeholders
The construction industry consists of a range of actors that influence the course of construction projects. These are categorised as follows:
Developers and owners
Architects, engineers, and consultants
Contractors and builders
Manufacturers of construction products, processors of reused products
Demolition, deconstruction, and material banks
Government, regulators and local authorities
Research and innovation
Nongovernmental organisations
The following section describes each group of actors together in the context of their role in circular construction.
4.2.1. Developers and building owners
Developers are the driving force behind any construction project. Due to their vested interest in these projects, they fundamentally influence circularity in the construction sector through their demands and preferences as they filter through the planning and design phase of the project. The initial procurement of design and engineering consultancy services defines how the project will proceed, and it is crucial that the developer forms a comprehensive understanding of what the other actors in the value chain can deliver in terms of circularity and reuse (Wennersjö, et al., 2021).
Private-sector developers are profit-driven and therefore unlikely to engage in circular construction unless it has a clear financial payback, while public-sector developers also work within financial constraints, and incorporating sustainable or circular criteria into tender documents can be challenging.
It can be useful to quantify both the economic and environmental value in a project so that circular approaches are not only viewed as an additional cost and risk but also as a contribution to the project’s value proposition (Wennersjö, et al., 2021). This can include using Circular Economy Life cycle Costing tools (CE- LCC) (Jansen, et al., 2020).
The EU taxonomy that came into effect in 2022 provides definitions and security for investors and insurance providers to help companies shift to more sustainable activities. One of the EU taxonomy’s six environmental objectives—areas where an economic activity can positively contribute to sustainability—is “The transition to a circular economy” (EC, 2020). The issuing of “green bonds” can also encourage property developers to increase circularity and other environmentally sustainable activities in their projects.
4.2.2. Architects, engineers, and consultants
The design team of architects, engineers, and other consultants is responsible for developing the project in accordance with the requirements set out by the developer. As such, they can have an enormous influence on circularity through their design and material choices. Through their expertise and knowledge, they can also positively influence developers toward more circular solutions. As they are involved early in the process, architects and engineers can help identify products in soon-to-be-demolished buildings that are suitable for reuse.
Architects working with circular design must engage in the principles of reuse and designing for reuse and repurposing, while simultaneously meeting the aesthetic demands of the developer and their own professional expectations. Technical consultants and architects engaging in circular construction should also be able to quantify the benefits of reuse as well as understand, and preferably document, how reused products can be integrated into new designs, and the benefits that this brings.
4.2.3. Contractors and builders
Contractors and builders coordinate and execute the project in the construction phase. They work directly with construction products, logistics, and waste—the practical stages of construction. In addition to carrying out the actual construction activities, they are typically responsible for material and product procurement, logistics, and waste management.
Most companies in the construction industry are SMEs; less than 1 per cent of companies in the Danish construction sector have more than 250 employees, and 85 per cent of the construction workforce is employed in an SME (Danmarks statistik, u.d.). However, even within this group, there are significant differences in size and competency areas within building companies. Around 65 per cent of the construction workforce is employed in companies with less than 50 employees, and 30 per cent in companies with fewer than 10 employees. The sector also covers a highly diverse range of skills and competencies, which is reflected in the number of distinct trades within the construction sector. Similarly, there is a huge variety in the size and complexity of projects—from simple renovations and repairs of small buildings to the construction of entire neighbourhoods.
Waste prevention within the construction sector has, in recent years, focused on the role of contractors and builders—both in terms of waste management at the construction site, and by avoiding the over-procurement of building materials and products: the economic incentives and tight construction deadlines typically mean that having a little extra material as a buffer is preferable to having a very lean supply and risking delays.
As builders and contractors work directly with the construction materials and products, their involvement in and influence on the effectiveness of circular construction is decisive. In many cases, they must adapt existing practices to non-standard reused products and materials, develop and maintain new competencies, and work with new and unknown material flows and supply chains. This in turn influences their procurement and logistics processes (Wennersjö, et al., 2021).
4.2.4. Construction product manufacturers, processors of reused products
Manufacturers of construction products and processors of reused products provide the material used in the sector. Manufacturers of new building products create products that fulfil the technical requirements demanded by the sector in a highly competitive environment.
Manufacturers of construction products have an important role in facilitating the transition to circular construction. For example, designing for reuse and flexibility demands new, innovative products that enable buildings to more easily be adapted during their lifespans and dismantled when they reach their end of life. Manufacturers can also have a role to play in take-back schemes and remanufacturing, which could be particularly relevant for high-value and high-complexity assets.
Preparing construction products for reuse is a specialist activity with close ties to the demolition/disassembly sector. Preparing for reuse can include a range of activities, from sourcing materials for reuse, to cleaning, repairing, and testing products to ensure they meet the technical and aesthetic requirements of the construction industry.
4.2.5. Demolition companies and material banks
Demolition companies are responsible for removing a building at end-of-life and ensuring that the resulting waste materials are properly managed and end in the correct treatment operation—recycling, energy recovery, or landfill. The original design of the building heavily influences the processes involved in deconstruction and demolition.
Within the framework of circular construction, demolition companies have a vital role to play in identifying and safely removing products for reuse. Selective demolition is not new, but it mostly focuses on hazardous materials that must be removed prior to demolition to ensure clean waste fractions for recycling. As with the builders and contractors, circular construction demands additional skill sets within the demolition industry to enable reusable products to be safely and carefully removed from buildings, packaged transported and stored when necessary in such a way that avoids damaging the reused products. Circular construction is a significant opportunity for deconstruction and demolitions contractors, and their skills will have a positive impact on the transition.
However, disassembly takes significantly longer and is considerably more complicated than demolition, and as such is more costly. Finding time within the development schedule to undertake these extra activities is essential (Wennersjö, et al., 2021).
Material banks and resellers of reused products play an important role in mediating the transfer of products between the old and the new building. There is an economic interest in storing materials for reuse or recycling rather than disposal since it reduces waste management fees. It is also a benefit for the site owner or developer, who can decrease their environmental impact (Wennersjö, et al., 2021).
Until recently, interest in reused construction products has been primarily driven by economic factors—in some instances it can be cheaper than buying virgin new products. Appreciation of the environmental benefits has, however, begun to become a factor driving reuse. This affects what is being recovered from demolition sites and what is later reused (Wennersjö, et al., 2021).
4.2.6. National and local authorities
National and local authorities are responsible for the legislative framework conditions for the construction sector. National authorities are responsible for developing new regulations and strategies as well as enforcing existing regulations. Public authorities, often at the local level, also control permission for construction activities, and therefore have a great influence on the construction process and the direction of development within the Nordic countries.
Government and local authorities can also play a vital role in the transition to circular construction by creating an incentive structure that rewards circular construction activities. For example, policy and regulations can promote reuse and recycling by making them more economically advantageous or mandatory.
Aside from their regulatory role, local and national authorities are also among the largest building owners and developers in the Nordic countries. This means that public procurement of construction activities and real estate can be a powerful driver for change in the industry.
4.2.7. Research and innovation organisations
New materials and processes are needed to make the shift from linear to circular systems possible. Research and innovation programs aid the transition into a circular economy. Network platforms for actors within the construction sector can offer a range of services such as webinars, marketplaces to sell and buy recycled products, education, guides, and reports that can help foster new practices in the construction sector. These programmes allow stakeholders such as architects, consultants, contractors, researchers, and public actors to cooperate and find sustainable solutions to increase circular construction.
Research and innovation organisations can also help challenge old perceptions and values in the industry. Changes to practices and processes are often perceived as threats to the status quo and existing power balances within the industry, and changes in the industry will affect the entire value chain to some extent.
4.2.8. Nongovernmental organisations
Industry organisations represent the construction industry at the political level and often provide networking and knowledge-sharing facilities. These can be useful for coordinating initiatives within the industry and provide a channel for communicating with all the actors within the industry. Similarly, they can coordinate responses to challenges within circular construction, which can be particularly relevant in relation to regulatory or the administrative barriers faced by the industry.