Sustainability and Innovation

Amongst the naysayers of climate change there is a strong argument that regulation protecting environment retards development. Claims that regulations either advance or retard innovation and development are overly simplistic.  Value of development cannot be a simple intrinsic price but embodies many extrinsic parameters too.  Regulations do not necessarily always throttle the speed of development but in fact compels us to innovate. It propels better performance and longetivity of products and systems. A recent study discusses the story of five ideas that were spurred by regulations.  Everyday products that have made our lives far more sustainable than a few decades ago such as the incandescent light bulb or energy efficient appliances are examples of direct results of stricter regulations being applied for use of said product in itself. But there are many regulations that were applied to one set of industry and the benefits of the regulations have been reaped by another industry.  This is true more so for the construction industry and infrastructure systems.

Prior to the regulations laid down on coal industry, ash particulates formed from burning coal were dispersed into the environment causing large amount of air pollution.  Similarly, silica fume a by product of reducing high-purity quartz with coal or coke and wood chips in an electric arc furnace during the production of silicon metal or ferrosilicon alloys, was also discharged into the environment before stricter laws were put in to place in 1970s . Environmental regulations forced the power industry to develop high performance bag filters to collect fly ash or silica fume rather than discharging it into air.  The next question was utilization of these collected by-products. Similarity of chemical composition of fly ash or silica fume with cement has lead to its extensive use in the construction industry.  Usage of fly ash, silica fume or slag (from steel industry) in cement as partial replacement enhances the strength, quality and long-term performance of the structure.  It’s a win-win situation for both the stakeholders as well as the producers. Currently, 5 billion tonnes of concrete is produced worldwide of which nearly 40 % is made using industrial by-products as partial cement replacement additives.  

The production of Portland cement is an extremely resource and energy intensive process where every tonne of cement requires about 1.5 tonnes of raw materials. In addition, each tonne of cement produced releases approximately one tonne of carbon dioxide (CO₂) into the environment. Thus the production of Portland cement is a significant contributor to atmospheric pollution and the green house effect.  Addition of fly ash or silicafume as partial replacement to Portland cement helps in reducing usage of extensive raw materials as well CO₂ emissions. Each tonne of cement replaced by fly ash reduces the CO₂ emissions by approximately one tonne.  Thus, regularizing two industries, which did not have any direct connection with the construction industry, has lead to innovations that have benefitted stakeholders as well as users worldwide.  The promise of innovation should not be viewed as a requirement to justify necessary rules to protect workers, the public and the environment. However, the fact that it often happens is something to keep in mind when industry repeats its yelling about the burden of regulation. 

Look beyond the glossy advertisements of real estate

Currently real estate prices have escalated to a price range well beyond the reach of common man.  The real estate industry has now become a predominantly high price to the customer and high-margin development for the builder.  Most of the time buyers do not get their value’s worth in terms of quality and design of the building.

With festive season on us most have one more reason to buy or book an under construction home for the family. Advertisements with glossy pictures of aesthetically beautiful buildings, lush green gardens and jogging tracks are printed in leading newspapers to lure the buyer to the booking office. Builders offer sparkling bathroom fittings, amenities like swimming pool and gym, throw in discounts for festivals and early bird offers.

What the builders don’t tell you are the type of materials being used in construction, the codes adopted for building design, the strength of concrete or type of concrete.  Much of northern India and western regions fall under medium to high probability earthquake zone but there are very few builders who design buildings taking into account the effects of an earthquake.  There is every likelihood that within two to three years of completion of constructing the building the plaster may start to peel off or water starts leaking in the bathroom or from terraces in to the top floor slabs.  Continuous usage of building will require maintenance but given high initial costs we as consumers want our property to function without much maintenance.  Unfortunately builders get away from providing a guarantee that such damages will not occur because municipal bye-laws do not require them to do so.  The real estate industry is largely unregulated despite being the largest contributor to national growth. The government requirements for authorizing a residential or commercial building are very minimal and poor at best. 

How long a building will function safely with bare minimum maintenance schedules is dependent upon quality of materials used, quality control and quality assurance adopted at site. Superior quality finishes and aesthetically pleasing structure does not always result in good quality construction. Quality assurance from builder can be relied upon either based on past 20 + years of performance of his buildings or by assessing a paper trail maintained during construction site.  Most builders are fly-by-night operators and don’t necessarily maintain a paper trail to track back quality assurance on site. In the absence of any real estate regulatory authority or an appropriate consumer redressal forum it is essential that the buyer is well-informed about expected requirements from the builder.

As an informed buyer it is necessary to ask for information about construction materials, techniques and time span from the builder.  Most buildings in and around Mumbai these days have 8 or more storeys.  From a quality standpoint for high-rise buildings it is necessary to use ready mix concrete (RMC) technology for concreting.  RMC involves mixing of concrete under controlled conditions at a ready-mix plant and transporting it to the building site in a truck .  Such plants are available in India but very few builders make use of this technology. RMC insures that quality and desired strength of concrete are consistently maintained.  RMC can help in reducing weak zones or empty air pockets within the concrete thereby reducing leakage issues to a large extent.  Many new buildings experience leakages from terrace slab during monsoon within about 2-3 years of construction.  Typically, well done water proofing on the terrace should last a minimum of 7-10 years. Ask the builder to provide five years written guarantee for it.

While buying directly from the builder request for an authorized structural plan of the building.  An authorized plan should have a seal from the local municipal authorities. Many a times builders accept booking amounts for a certain type of plan and sometimes even build a few floors before going back to drawing board and adding a few more floors to the building.  The builder does not necessarily go back and increase the strength of foundation safety levels similar to prior design. This means that the building is now standing precariously on minimal design and safety requirements.  Such a building can easily fail even due to minor damage. It is essential to have some written contract with the builder which will restrict any changes to the plan after you have booked the flat for a given approved plan.

All these factors and a few more are important behind the glossy advertisement that need to be looked into before buying real estate.  Look before your leap in to the quagmire of buying real estate. 

(An edited version of this post appeared in mid-day)