Executive Summaries

@DLS
for the practitioner

… Consultancy Volume 8 Issue 4: November 2008

MICA(P) No. 276/05/2008

A Davis Langdon & Seah Consultancy Information Sheet

The Carbon Index

This article discusses on the importance and fundamental concepts of the Carbon and the Carbon Index, and how it will
eventually affect the Construction Industry.

What is Carbon?
Carbon, in the form of carbon dioxide (CO2), is recognized as one of the major greenhouse gases
released to the atmosphere as a result of human activities, and largely due to the burning of fossil
fuels, land degradation like mining and deforestation. CO2e is an abbreviation of 'carbon dioxide
equivalent' and is the internationally recognized measure of greenhouse emissions. There are 6 types
of greenhouse gases controlled by the Kyoto protocol. These include: carbon dioxide (CO2), nitrous
Oxide (N20), methane (CH4) and a range of synthetic (industrial) gases including perfluorocarbons
(PFC), hydrofluorocarbons (HFC) and sulphur hexafluoride (SF6). Each of these gases has a different
capacity to heat the atmosphere - global warming potential (GWP). CO2 is not a potent greenhouse
gas (GWP of 1) compared to the others. However, because CO2 is produced in such huge quantities,
its effect dwarfs all the other greenhouse gasses combined.

To illustrate, when an organization calculates its greenhouse emissions these are reported as though
they were equivalent to a given volume of CO2. This is the CO2e. For example, greenhouse emissions
from a landfill of 100 tons of methane are recorded as 2,100 tons CO2e. Using CO2e as a measure of
greenhouse emissions allows for comparing the greenhouse impact of a variety of greenhouse
emissions sources.

Carbon Index

Greenhouse gases (GHGs) are synonymous with global warming. To mitigate the effects of global
warming, there is a need to reduce energy consumption or to have energy efficient buildings and
one method used to measure energy rating is the universal Standard Assessment Procedure (SAP).
The ratings are from 1 (poor) to 100 (good).

A relatively new method of energy rating that measures the amount of carbon dioxide emitted by a
building’s energy system is carbon indexing. A carbon index of 8 is roughly equivalent to SAP’s 100.

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The Carbon Index

Carbon Footprint
The first step in developing a carbon management strategy for buildings will be to accurately
measure the current level of carbon emissions – that will be your carbon footprint. Carbon footprint is
essential for building owners to set benchmarks to measure carbon performance and to compare
amongst other properties. These measurements would also enable building owners to maximize
energy efficiencies and returns through identification of energy inefficient areas.

The carbon footprint for buildings includes embodied carbon and operational carbon.
The embodied carbon of a building are from the CO2 produced during the manufacture of
materials, their transport and assembly on site, maintenance and replacement, disassembly and
decomposition. Operational carbon is carbon emissions due to the operations of the building. A
typical carbon footprint of a building would ideally include the following:
□ material development and preparation;
□ construction process (including transport);
□ disposal or ongoing occupational emissions from tenant occupiers; and
□ Refurbishment and redevelopment.

Carbon Index and the Quantity Surveyor

Embodied carbon accounts for only 13-18% of the total carbon footprint of any construction project
(UNEP, 2007) which explains the rationale of initiatives focusing on increasing energy efficiencies to
curb operational carbon emissions. However, as buildings become more energy efficient, the more
important the embodied carbon becomes as it would then make up a much greater percentage of
a low-energy building’s total lifetime carbon footprint.

With the current emphasis on energy efficiency, there is an increasing need for building owners and
building designers to be more concerned in the real carbon footprint of their buildings to take careful
account of embodied energy and associated CO2 emissions. In response, quantity surveyors can
merge their cost plan tools with a suitable carbon rating that can identify the building elements which
carry the highest carbon costs and in turn value engineer to mitigate the risk of incurring a high
carbon footprint so as to achieve energy-efficient and carbon-efficient building.

The difficulty of calculating embodied carbon emissions is that many variables affect the carbon
intensity of products, including manufacture, transport, primary energy sources and the extent of
waste or recycling. However, as some processes and products are more carbon-intensive than others
– cement, aluminum and glass being good examples – it is not necessary to calculate the absolute
total carbon footprint of a project, as many components will have a negligible impact and offer
limited opportunities for mitigation. An approach that focuses on the most carbon-intense and

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The Carbon Index

extensively used components can be adopted, applying the principles of significant item cost
estimating to the assessment of carbon, and adding an allowance for the remainder (Wright &
Rowlinson, 2007).

How to Calculate Embodied Carbon

With the methodology established by our Davis Langdon & Seah International, M/s Davis Langdon
office in London, we will illustrate 2 case examples on how to calculate embodied carbon.

Case study A illustrates how a composite embodied carbon rate is built up for concrete ground slab
options, based on ordinary Portland cement (OPC) and 30% pulverized fuel ash (PFA) mix.
Calculations are based on a single square meter of slab.

• The original embodied carbon data is based on mass, so conversion to the built quantity is
required for all components

• The results are expressed in units that are used in the original cost plan

• There are two or three items which have a significant impact on the total, in this case cement,
reinforcement and disposal of excavated material. Other items account for less than 20% of
the total. While the calculation must be detailed for carbon-intense items, those with low
impact can be dealt with as a percentage adjustment, once the relationship is understood

• Changes to specification can have a dramatic effect on a building’s footprint.

Use of PFA in this example reduces the embodied carbon by nearly 19% compared with a standard
concrete mix. There are many other opportunities to mitigate embodied carbon impacts

• Mitigation may be constrained by availability of substitutes, or the programme and costs.

However, the embodied carbon approach helps ensure the issues are considered alongside a
project’s other success factors.

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The Carbon Index

Material assessment: ground slab

Total embodied carbon emissions/m2 of slab area103.2
Concrete mix based on 30% PFA substitution of OPC
Kg embodied carbon/unit Kg embodied
carbon/m2 gifa
Excavation (m3)/ PFA mix 11.1 6.66
Disposal (m3) 16.7 10.02
Blinding, 75mm thick (m3) 9 0.72
Concrete, 200 thick, OPC cement (m3) 309.1 61.82
Reinforcement, A252 mesh (kg) 0.44 1.72
Movement joints (m) 8.7 0.44
Damp proof membrane (m2) 0.7 0.7
Insulation board (m2) 1.7 1.7
Total embodied carbon emissions/m2 of slab 83.8
area
Exclusions: demolition and disposal of slab construction at end of life
Gifa: Gross Internal Floor Area

Case study B extends the assessment to a whole building, in this case a distribution centre. It is an
abbreviated BCIS elemental summary and has been derived from the application of cost plan
quantities to Davis Langdon’s embodied carbon rates database.

The results of the assessment illustrate the impact of a few components on a building’s carbon
footprint. The ground slab is the most important element, accounting for 42% of emissions, but in cost
terms it equates to only 17% of total cost.

The, frame, roof and external walls, account for the most value in shell construction – about 32% of
both the carbon footprint and capital cost. While this shows carbon often “follows mass”, the quantity
of external envelope relative to floor area means walls and roofs also present an opportunity to
reduce the carbon footprint.

The assessment also encourages proportionality. In this case, the results show mitigation efforts
focused on finishes and services (equating to 10% of embodied carbon and capital cost) yield less
cost-effective outcomes. For services, focusing on reducing in-use energy consumption would
probably yield best outcomes.

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The Carbon Index

Building assessment: distribution centre

£/m2 gifa % Kg embodied %
carbon/m2 gifa
Substructure 59 17.4 146.5 42.3
Frame, upper floors and stairs 60.7 17.9 68.4 19.7
Roof 48.5 14.3 41.6 12
External walls, windows and doors 14.7 4.3 13.3 3.8
Internal walls and doors 0.8 0.2 2.3 0.7
Internal finishes 4.4 1.3 5.6 1.6
Building services installation, 31.8 9.4 30.2 8.7
including dock levellers
External works and services 81.4 24 38.6 11.1
Preliminaries 37.5 11.1
Total construction cost/m2 gifa 338.8 100
Total embodied carbon 346.5 100
emissions/m2
Exclusions: site preparation, site abnormals, distribution centre and administration area
fit-out, operating equipment, professional fees

With the calculations of embodied carbon coupled with current operational carbon measures, it is
possible to provide a holistic view of the impact of Clients’ developments.

As the data bank for carbon index improves, we will be able to band buildings by their embodied
carbon rating and clients will gain a greater appreciation of their buildings and their project teams’
roles in addressing carbon impact through:-

• Intelligent specification, based on impact as well as ease of implementation

• Creating demand for products with low-carbon processes

• Encouraging demand to create market transformations in carbon-intensive sectors of the

supply chain

• Fostering an appreciation of the impact of strategies such as renewable energy technologies

• Encouraging the use of recycled and recyclable products

• Designing for deconstruction

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Conclusion
There has been an overwhelming plethora of evidence on the impacts of climate change to give
clear and strong signals to economists and policy-makers in shaping a response. One of the strongest
signals sent out to date is the legislation of Green Mark Certification in April 2008 which was hitherto a
voluntary scheme since its inception in 2005.

Furthermore, there has also been a growing emphasis on curbing of carbon emissions in the
construction industry which is best epitomized by two recent events. Firstly, the launch of the Clean
Development Mechanism (CDM) Documentation Grant by the National Environment Agency (NEA)
whereby S$500,000.00 worth of funding will be provided to encourage companies to develop CDM
projects in Singapore which includes engaging a carbon consultant to develop a new methodology
and Project Design Document (PDD). The other milestone event is the possible listing of a carbon
trading fund worth more than 250 million euros (S$532.4 million) which is among the first of such funds
to debut in Singapore.

In a bid to keep abreast of the latest development in the industry, Davis Langdon & Seah Singapore in
conjunction with National University of Singapore and the Building Construction Authority of Singapore
are currently in a joint research to develop a comprehensive carbon library resource (Carbon Index)
on construction materials and systems. The Carbon Index would enable a standardized measure of
carbon ratings and facilitate in embodied carbon measurements in relation to the cost reporting
format in CP80. As highlighted in the above report, the seamless integration of embodied carbon
components to the existing cost plans template would provide Building owners with a more
comprehensive outlook over the properties.

Bibliography

1. Straits Times Article, 15th August 2008 on Funding for Carbon Credit Projects

2. Straits Times Article, 31st July 2008 on Carbon Trading Fund

3. RICS Report, Carbon management of real estate, April 2008

4. The Business Times, March 24, 2008, P12: Carbon Trade: To invest or not to invest.

5. Closing Address by Mr S Iswaran Minister of State for Trade and Industry at Carbon Forum Asia 2007, November 2007

6. Our dark materials, 2007, issue 45, Thomas Lane

7. Underestimate embodied energy at your peril, 3 October, 2007, John Connaughton

8. Sustainability - Embodied Carbon, 2007 issue 41 By David Weight, Simon Rawlinson, Building Magazine.

9. Sterns Review, 2006

10. National Climate Change, MEWR, Key CO2 contributor, 2004.

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The Carbon Index

11. What is CO2e? http://www.soe-townsville.org/sml_windows/co2e.html

12. Understanding the Global Carbon Cycle; http://www.whrc.org/carbon/index.htm

Davis Langdon & Seah Japan – Tokyo Office Opening

We are proud to announce the establishment of our first permanent office
in Tokyo, Japan. The President / CEO of DLS Japan Ltd is Seiichi Hayashida
Contact Details are :
5th Floor, Akasaka Kowa Building,
2-8-16 Akasaka Minato-ku,
Tokyo 107-0052,
Japan
Tel : 81-2-6459 1227
Fax : 81-3-6459 1278
Email : tokyo@dlsjapan.com

DLS TPI is a measure of the comparative tender price movements based on the projects handled by Davis Langdon & Seah
Singapore Pte Ltd. TPI reflects the tender price level of contracts let out over the years. Other than material and labour costs, TPI
takes into account the element of competition, risk and profits.

Tender Price Index (Base Year 1994) Based on DLS internal cost data, construction cost
160.0
155.0 escalation for the first half of 2008 (i.e. January –
150.0 June 2008) has shown an increase of approximately
DLS BCA* 146.4
145.0 10% to 12%. For the remaining half of 2008, due to
139.4 138.3 the severity of the economic crisis, construction cost
140.0
135.0 is anticipated to remain steady. Hence, the overall
134.0 cost escalation for 2008 is forecast to be in the range
130.0
125.3
125.0 of 10% to 15%.
121.7
120.0
115.0 Looking ahead, it is anticipated that for projects to
107.5 108.0 be carried out in 2009, pricing pressure will be
110.0
104.1 106.6 102.9
105.0 reduced due to the lessening of projects and
100.0 103.2 106.9 99.5 98.2 99.4 102.5
100.0 uncertainties in the global economy. Inevitably,
100.0 97.5 95.0 95.3
95.0 there will be a lot more stoppage of projects as the
88.4 87.6 89.4
90.0 87.3 92.3 economic crisis deepens. As a result, construction
87.4 87.1
85.0 cost, given the lag time, is anticipated to decline in
86.2 86.8 86.3
80.0 2009 onwards.
94 95 96 97 98 99 00 01 02 03 04 05 06 07 1Q08 2Q08

Source: * Building and Construction Authority as at 29 July 2008

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The Carbon Index

Davis Langdon & Seah Singapore Pte Ltd (DLS) in addition to providing traditional quantity surveying has developed a range of
specialist integrated management services for construction projects comprising of cost management, project management,
contract advisory & dispute management, specification consulting, cost engineering services, loan monitoring, insurance
valuations and loss adjusters assessment, sustainable construction, construction supervision services and investment appraisals.

Contract Advisory & Disputes Management Services Pte Ltd – Amos Teo / Kua Moon Yin / Seah Kwee Yong
Legally and technically qualified construction professionals providing the following within Singapore, the Region and the International
arena:
• Front End Contract Advisory work including contract administration, procurement strategy, incorporation of conditions of
contract
• Claims Assessment
• Legal and Litigation Support
• Expert Technical advise and witness
• Dispute Management towards avoidance and resolution
• Evaluator, Mediator, Arbitrators and Adjudicator
• Research, publication, seminars, short courses and in-house training for staff, clients and consultant organisations

DLS Consultancy - Eugene Seah / Amos Teo / Kelvin Ng / Zhang Pei / Gary Ang
• Construction Innovation
• Technical Due diligence
• Sustainability and Green Issue
• Market Intelligence and Research
• Bank Technical Advisory
• Management Consultancy / Development Management
• Facilities Cost Consultancy Capital Allowance

DLSC Includes the following services through the following departments: -

Cost Research Department – Mechanical & Electrical Quantity Surveying Services

Eugene Seah and Cheryl Lum Pui Sze Department –
• Cost Analysis & Research of tenders and its price Goh Chok Sin and Sunny Li
indexing • Budget and detailed cost estimating
• Value Management & Engineering exploring schemes, • Tender and Contract documentation
architectural forms and constructions methods towards • Financial management of contract
achieving efficiency and buildability • Value engineering
• Benchmarking – Generic, Competitive, external and • Life cycle costing
internal • Capital allowances taxation assistance
• Reinstatement Cost Assessment • Dispute resolution and expert witness reports
• Due Diligence Reporting • Cost audit

Contact us at our Email CADMunit@dls.com.sg; CostResearch@dls.com.sg; M&Eunit@dls.com.sg;

DLS Singapore Tel. – 65 6222 3888 or Visit our website at www.davislangdon.com

…@DLS Consultancy’s Executive Summary for the Practitioner by Eugene Seah Hsiu-Min and Amos Teo provides a synopsis of
legal and/or professional practice issues in the construction industry and is intended for information purposes only. While DLS
Consultancy endeavours to ensure the accuracy and completeness of the information sheet, specific professional legal advice
should be obtained and no reliance should be placed on any part of its contents. All rights reserved. Copying in any form or by
any means (electronic, photocopying or otherwise) is strictly prohibited without the written permission of DLS Consultancy.

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