I-LIFE. Insurance-backed warranty for whole life housing energy performance. Building Performance Seminar. Author Steven Coulsting
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1 I-LIFE Insurance-backed warranty for whole life housing energy performance Building Performance Seminar Author Steven Coulsting Date 3 December 2015
2 Building Whole Life Performance The aim is to maximise the long-term economic, societal and environmental contribution of buildings, by improving their whole-life performance. The whole-life performance of a building starts with construction and continues through to the end of its life. Interventions can be made for all stages or at any stage to improve the building s whole-life performance. Three key themes: Stimulating customers to procure and manage better solutions Improving a building s whole-life performance Evidence of whole-life performance
3 I-LIFE Project Team Peter Mayer Rajat Gupta Helen Brown Amberley Advisors David Emery Alasdair Donn Sarah Ratcliffe
4 I-LIFE Project Vision The vision of the project is to change the way new housing is built in the UK by developing an innovative insurance product which will underpin an energy performance warranty for new housing. Availability of an insurance-backed warranty (at economic cost) will create commercial incentives to build houses that perform to specification (reducing or eliminating performance gaps). It will link builders much more closely to customer needs, creating stronger market drivers for innovation, quality and low carbon housing. This will raise standards across the industry. Developers will compete to meet customer performance outcomes (rather than simply building to design standards).
5 The Partners Copyright Encraft Ltd 2014
6 Encraft Low carbon consultancy Helen Brown Relevant expertise Building Physics Practice is one of the most experienced in the UK, involved in all stages of low carbon housing design, procurement, construction, and post-occupancy evaluation for over 10 years. They delivered 2 houses for the TSB Retrofit for the Future Competition, and over 200 Passivhaus and very low carbon housing projects to date. Role Project Technical Director
7 Oxford Institute for Sustainable Development Low Carbon Building group Rajat Gupta Relevant expertise Oxford Brookes University is the largest academic research institute in the UK focused on sustainable development. The Low Carbon Building group has world-leading expertise in applying a socio-technical approach to evaluating housing performance. Prof Rajat Gupta (Director) is an IUK accredited building performance evaluator on the 8m BPE programme. He will lead the research team from OBU assised by Matt Gregg (Research Fellow) and Mariam Kapsali (Research Associate). Role Academic Research Director
8 BLP Insurance (Building LifePlans Ltd) Peter Mayer Relevant expertise BLP Insurance (Building LifePlans Ltd) provides housing warranty insurance and commercial development latent defects insurance underwritten by Allianz Global Corporate & Specialty SE. They also provide whole life cost data and methodology in UK residential construction and durability assessments for clients fast-tracking adoption of innovative systems. Role Insurance Research Manager
9 Willmott Dixon Low carbon consultancy Alasdair Donn Relevant expertise Willmott Dixon have been a specialist in housing since 1974, and are currently building over 1,700 homes each year in the public, private and care sectors as well as student accommodation. Their projects range in value from 3 million to 60 million with each one having the same focus on quality and attention to detail. Role Advisor (Housebuilder and Pilot Testing)
10 Virtechs Relevant expertise VIRTECHS are experts in BIM and were established in 2006 specifically to provide BIM services into the construction industry. They have worked on many housing projects including large scale developments. David Emery Role Advisor (BIM Specialist)
11 Amberley Advisers Better Buildings Partnership Amberley Advisors Relevant expertise Sarah Ratcliffe, Amberley Advisers, is Programme Director for the Better Buildings Partnership (BBP) of property investors, including many with interests in housing. Sarah Ratcliffe Role Advisor (Industry Feedback)
12 Project overview Project Exploitation ENCRAFT Technical assurance Pilot specification OSID Meta-analysis of extensive data VIRTECHS Innovative IT solutions Pilot Product definition Large scale pitot National product launch Develop insurance product BLP Test pilot WD Advisor panels AMBERLEY ADVISORS
13 Project work packages OSID Amberley Advisors Virtechs Willmott Dixon BLP Insurance Encraft
14 Energy performance insurance technical process
15 Insurance model Type of insurance product Warranty or insurance? Does the assurance need to cover the performance of the building for a specified period (insurance)? Or is it to simply cover that it was built correctly and therefore perform as specified by providing cover for latent defects (warranty)? Whole life What is the lifetime of a building? What is a reasonable period for an insurance product to cover? Any period over 5 or 10 years is unlikely to be supported by the insurance industry. A minimum of two or three years is necessary to determine the level of performance with a sufficient degree of accuracy.
16 I-LIFE Project Delivery Framework Research Design workshop Define tech. assurance approach Ready to pilot Pilot approach Review Refine and package Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q9 Q10 Insurance industry input BPE and other data Advisory panels Exploitation planning
17 Define technical assurance approach Literature review Define technical approach Specify pilot Refine technical approach
18 Literature review Technical assurance approach Tasks 1. Building rating systems 2. Plan of work structure 3. Classification structure 4. Barriers to accurate energy prediction 5. Methods to overcome barriers 6. Change in house energy performance changes over time 7. Information management 8. Methods of modelling unregulated energy 9. Existing performance data 10. Design the recommended approach 11. Workshop in April 2016
19 Building rating systems Literature review Literature review to identify and characterise existing (technical) approaches to building energy performance assurance. Passivhaus PHIUS BREEAM New Construction Soft Landings GSL (Government Soft Landings) Home Quality Mark AECB Gold/Silver Green Globes LEED Homes Green Mark Energuide for Houses R-2000 IPMVP (International Performance Measurement and verification protocol) DGNB System DGNB System DomEARM NABERS TM54 Building Regulations NHBC Home
20 Passivhaus Design stage: Energy modelling is required using bespoke software. A certified components scheme for windows, doors, MVHR, build-systems helps provide confidence over the performance of suitable products. A project can be certified at design stage to confirm proposed design will meet the standard. Construction stage: The client or a specialist consultant is obliged to gather photographic (or otherwise) evidence that products are installed as designed. This typically occurs over a number of site visits throughout the build process. Airtightness test (achieving result <0.6 is required, as is a formal commissioning report of the MVHR system. Issues: Separation of certifier from project (i.e. no site visit, evidence required not completely prescriptive). System relies on integrity and expertise of consultant or individual managing the collection of evidence and modelling.
21 BREEAM for new build Design stage: An assessor is employed by the client to gather evidence (product datasheets, calculation tools, checklists). This evidence is submitted to the certifying body who verify the evidence is sufficient to meet the requirements of the standard. Typically a random sample of credits are assessed in detail. A design stage certification is then awarded. Depending upon the level of certification targeted, air leakage tests and system commissioning may be required Issues: Separation of certifying body from project. Large amounts of evidence are received and each credit is not always checked in QA process. Construction stage: Evidence in the form of photos and signed checklists/letters are gathered to confirm design specifications were installed (similar to Ene2 Credit in the Code for Sustainable Homes).
22 Project overview Project Exploitation ENCRAFT Technical assurance Pilot specification OSID Meta-analysis of extensive data VIRTECHS Innovative IT solutions Pilot Product definition Large scale pitot National product launch Develop insurance product BLP Test pilot WD Advisor panels AMBERLEY ADVISORS
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