The hidden cost of construction | Micheal Green | TEDxVictoria

03 Sep 2024 (4 months ago)

The True Cost of Construction

The global construction industry represents a significant portion of the global economy, with an estimated spending of $13.5 trillion in 2023, projected to reach $24 trillion by 2032. (9m27s)
The current method of calculating building costs, which includes hard costs (labor and materials) and soft costs (design fees, permits, taxes, etc.), fails to account for the true cost, encompassing planetary, societal, performance, and process-related expenses. (8m40s)
Failing to consider the broader costs of construction, such as the impact on residents' well-being and the environment, hinders the development of innovative and sustainable building solutions. (17m17s)
A shift from focusing solely on project costs to considering the comprehensive "true cost," incorporating data from various fields like climate science and sociology, is crucial for promoting sustainable and responsible construction practices. (24m49s)

Construction noise is a serious global issue with a measurable human cost, impacting health and well-being. (50s)
The construction industry's contribution to climate change, estimated at 42% of global greenhouse gas emissions, necessitates incorporating a carbon cost into the expenses associated with each building project. (11m11s)
Building with wood offers a more sustainable alternative to concrete and steel, significantly reducing carbon footprint. (4m28s)

Governments often aim to construct affordable housing using the least expensive methods and materials, overlooking the long-term impact on residents and society. This approach can lead to a diminished sense of belonging and community among residents, potentially resulting in reduced productivity and increased societal costs. (12m41s)
Choosing construction methods that minimize disruption, such as reducing road closures, can have positive economic and societal benefits. Lengthy construction projects can negatively impact local businesses, employment, traffic flow, and contribute to stress levels within the community. (15m21s)
Biophilia, the concept of bringing nature into living and working environments, can reduce stress and increase productivity. For example, a tech company with highly paid employees could save a significant amount of money over 10 years by reducing sick days by 5-10% by incorporating biophilic design. (17m28s)

The construction industry is not incentivized to innovate and address negative impacts such as noise and carbon emissions. (2m30s)
The construction industry often adds unnecessary processes, leading to increased costs and reduced efficiency. For instance, Frank Lloyd Wright only needed 13 sheets of paper to design Fallingwater, while today, a similar project would require hundreds of sheets and extensive documentation, making it much more expensive. (18m36s)
There is a significant lack of investment in innovation within the construction industry, despite the vast potential for addressing major challenges. (22m55s)

Artificial intelligence (AI) can be utilized to analyze vast amounts of data from various sources, such as health departments and ministries, to determine the true cost of construction projects, including their impact on human health and the environment. This transparency can incentivize innovation and promote the use of sustainable materials and practices. (20m22s)

The Black and White building in London, constructed entirely of timber, maintained a noise level below 36 dB during its construction to accommodate a neighboring recording studio, demonstrating that change and consideration for surrounding environments are achievable in construction practices. (23m45s)