The economic relevance of on-site construction activities with the External Thermal Insulation Composite System (ETICS)
Abstract
The systematic inadequacies of the External Thermal Insulation Composite System (ETICS), which occur during the construction phase, increase the financial risk for stakeholders, while reducing the long-term durability of the facade. The economic effect of on-site shortcomings can be reduced if the most significant on-site activities are recognised. The current paper develops an economic relevance assessment model for on-site construction activities of ETICS to increase economic rationality of resource allocation and emphasise the high-risk systematic shortcomings. The economic assessment model quantifies the financial risk of the on-site degradation factors with the method of modified Failure Mode Effects Analysis (FMEA). The data collection is followed by experts’ judgments and is validated with the Delphi technique. The study reveals that degradation factors in the early phases of construction have the highest relevance due to high costs of repair as well as high occurrence possibility and higher detection difficulty due to rapid coverage. Ninety percent of the shortcomings appear during the first five years of completion of the construction. The on-site failures occurring during the application of mechanical anchors and finishing layer cause the lowest financial risk. The model enables the economic effect of the on-site activities to be prioritised for better resource allocation.
Keyword : ETICS, risk management, economic model, project management, quality, building technology
How to Cite
Sulakatko, V., & Lill, I. (2019). The economic relevance of on-site construction activities with the External Thermal Insulation Composite System (ETICS). International Journal of Strategic Property Management, 23(4), 213-226. https://doi.org/10.3846/ijspm.2019.7071
This work is licensed under a Creative Commons Attribution 4.0 International License.
References
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Daniotti, B., Cecconi, F. R., Paolini, R., Galliano, R., Ferrer, J., & Battaglia, L. (2012). Durability evaluation of ETICS: analysis of failures case studies and heat and moisture transfer simulations to assess the frequency of critical events. In 4th Portuguese Conference on Mortars and ETICS, 29-30 March. Coimbra, Portugal.
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Künzel, H., Künzel, H. M., & Sedlbauer, K. (2006). Long-term performance of external thermal insulation systems (ETICS).
ACTA Architectura, 5(1), 11-24. Retrieved from http://www.viking-house.ie/downloads/Long Term effect of Ext Insulation.pdf
Kuo, N. W., & Yu, Y. H. (1999). An evaluation system for National Park selection in Taiwan. Journal of Environmental Planning and Management, 42(5), 735-745. https://doi.org/10.1080/09640569910975
Kussauer, R., & Ruprecht, M. (2011). Die häufigsten Mängel bei beschichtungen und WDVS (2nd ed.). Cologne, Germany: Rudolf Müller GmbH & Co. KG.
Langdon, D. (2007, May). Life Cycle Costing (LCC) as a contribution to sustainable construction: a common methodology. In Final report summary. Davis Langdon management consulting.
Layzell, J., & Ledbetter, S. (1998). FMEA applied to cladding systems - reducing the risk of failure. Building Research and Information, 26(6), 351-357. https://doi.org/10.1080/096132198369689
Li, W., Zhu, J., & Zhu, Z. (2012). The energy-saving benefit evaluation methods of the grid construction project based on life cycle cost theory. Energy Procedia, 17, 227-232. https://doi.org/10.1016/j.egypro.2012.02.088
Mecca, S., & Masera, M. (1999). Technical risk analysis in construction by means of FMEA methodology. In W. Hughes (Ed.), 15th Annual ARCOM Conference (Vol. 2, pp. 425-434). Liverpool. Retrieved from http://www.arcom.ac.uk/-docs/proceedings/ar1999-425-434_Mecca_and_Masera.pdf
Neumann, H. H. (2009). Praxis-handbuch wärmedämm-verbundsysteme. Baustoffkunde, verarbeitung, schäden, sanierung. Köln: Rudolf Müller.
Olson, K. (2010). An examination of questionnaire evaluation by expert reviewers. Field Methods, 22(4), 295-318. https://doi.org/10.1177/1525822X10379795
Pelzeter, A. (2007). Building optimisation with life cycle costs - the influence of calculation methods. Journal of Facilities Management, 5(2), 115-128. https://doi.org/10.1108/14725960710751861
Pillay, A., & Wang, J. (2003). Modified failure mode and effects analysis using approximate reasoning. Reliability Engineering & System Safety, 79(1), 69-85. https://doi.org/10.1016/S0951-8320(02)00179-5
Preston, C., & Coleman, A. (2000). Optimal number of response categories in rating scale: reliability, validity, discriminating power, and responding preferences. Acta Psychologica, 104, 1-15. https://doi.org/10.1016/S0001-6918(99)00050-5
Rhee, S. J., & Ishii, K. (2003). Using cost based FMEA to enhance reliability and serviceability. Advanced Engineering Informatics, 17(3-4), 179-188. https://doi.org/10.1016/j.aei.2004.07.002
Rowe, G., & Wright, G. (2001). Expert opinions in forecasting: the role of the Delphi technique. Principles of Forecasting. International Series in Operations Research & Management Science, 30, 125-144. https://doi.org/10.1007/978-0-306-47630-3_7
Serpell, A. F. (2004). Towards a knowledge-based assessment of conceptual cost estimates. Building Research & Information, 32(2), 157-164. https://doi.org/10.1080/0961321032000172373
Shafiee, M., & Dinmohammadi, F. (2014). An FMEA-based risk assessment approach for wind turbine systems: a comparative study of onshore and offshore. Energies, 7(2), 619-642. https://doi.org/10.3390/en7020619
Skitmore, R. M., & Marston, V. (1999). Cost modelling. Taylor & Francis. Retrieved from https://books.google.ee/books?hl=en&lr=&id=pmOQAgAAQBAJ&oi=fnd&pg=PA172&dq=building+technology+cost+estimation&ots=hOixXZSD3q&sig=qdRlzDtHa8H0IREZ_D8ioXHPwOU&redir_esc=y#v=onepage&q=building technolog y cost estimation&f=false
Skulmoski, G. J., & Hartman, F. T. (2007). The Delphi method for graduate research. Journal of Information Technology Education, 6(1), 1-21. https://doi.org/10.28945/199
Sulakatko, V., Liisma, E., & Soekov, E. (2017). Increasing con-struction quality of external thermal insulation composite system (ETICS) by revealing on-site degradation factors. Procedia Environmental Sciences, 38, 765-772. https://doi.org/10.1016/j.proenv.2017.03.160
Sulakatko, V., Lill, I., & Liisma, E. (2015). Analysis of on-site construction processes for effective external thermal insulation composite system (ETICS) installation. Procedia Economics and Finance, 21, 297-305. https://doi.org/10.1016/S2212-5671(15)00180-X
Sulakatko, V., & Vogdt, F. U. (2018). Construction process technical impact factors on degradation of the external thermal insulation composite system. Sustainability, 10(11), 3900. https://doi.org/10.3390/su10113900
Thomas, A. V., Kalidindi, S. N., & Ganesh, L. S. (2006). Modelling and assessment of critical risks in BOT road projects. Construction Management and Economics, 24(4), 407-424. https://doi.org/10.1080/01446190500435275
Wetzel, C., & Vogdt, F. (2007). Technical improvement of housing envelopes in Germany. In L. Bragança, C. Wetzel, V. Buhagiar, & L. G. W. Verhoef (Eds.), Improving the quality of existing urban building envelopes – façades and roofs (pp. 46-48). Amsterdam: IOS Press BV.
Wilson, K. J. (2017). An investigation of dependence in expert judgement studies with multiple experts. International Journal of Forecasting, 33(1), 325-336. https://doi.org/10.1016/j.ijforecast.2015.11.014
Woodward, D. G. (1997). Life cycle costing-theory, information acquisition and application. International Journal of Project Management, 15(6), 335-344. https://doi.org/10.1016/S0263-7863(96)00089-0
Amaro, B., Saraiva, D., de Brito, J., & Flores-Colen, I. (2014). Statistical survey of the pathology, diagnosis and rehabilitation of ETICS in walls. Journal of Civil Engineering and Management, 20, 1-16. https://doi.org/10.3846/13923730.2013.801923
Ameyaw, E. E., Hu, Y., Shan, M., Chan, A. P. C., & Le, Y. (2016). Application of Delphi method in construction engineering and management research: a quantitative perspective. Journal of Civil Engineering and Management, 22(8), 991-1000. https://doi.org/10.3846/13923730.2014.945953
Bank of Estonia. (2017). Interest rates. Retrieved from http://statistika.eestipank.ee/?lng=et#listMenu/1071/treeMenu/FINANTSSEKTOR/147/979
Bowles, J. B. (2003). An assessment of RPN prioritization in a failure modes effects and criticality analysis. In Annual Reliability and Maintainability Symposium, 2003. (Vol. Annual, pp. 380-386). Tampa, Florida, USA. https://doi.org/10.1109/RAMS.2003.1182019
Carmignani, G. (2009). An integrated structural framework to cost-based FMECA: the priority-cost FMECA. Reliability Engineering and System Safety, 94(4), 861-871. https://doi.org/10.1016/j.ress.2008.09.009
Chan, A. P. C., Yung, E. H. K., Lam, P. T. I., Tam, C. M., & Cheung, S. O. (2001). Application of Delphi method in selection of procurement systems for construction projects. Construction Management and Economics, 19(7), 699-718. https://doi.org/10.1080/01446190110066128
Converse, J. M., & Presser, S. (1986). Survey questions: handcrafting the standardized questionnaire. Beverly Hills: Sage Publications, Inc. https://doi.org/10.4135/9781412986045
Cziesielski, E., & Vogdt, F. U. (2007). Schäden an WärmedämmVerbundsystemen (2nd ed.). Stuttgart: Fraunhofer IRB Verlag.
Daniotti, B., Cecconi, F. R., Paolini, R., Galliano, R., Ferrer, J., & Battaglia, L. (2012). Durability evaluation of ETICS: analysis of failures case studies and heat and moisture transfer simulations to assess the frequency of critical events. In 4th Portuguese Conference on Mortars and ETICS, 29-30 March. Coimbra, Portugal.
Dikmen, I., Birgonul, M. T., Ozorhon, B., & Sapci, N. E. (2010). Using analytic network process to assess business failure risks of construction firms. Engineering, Construction and Architectural Management, 17(4), 369-386. https://doi.org/10.1108/09699981011056574
Edis, E., & Türkeri, N. (2012). Durability of external thermal insulation composite systems in Istanbul Turkey. A Z Itu, 9(1), 134-148.
Eurostat. (2017). HICP all-items, development of the annual average inflation rates, 2005–2015. Retrieved from http://appsso.eurostat.ec.europa.eu/nui/submitViewTableAction.do
Eurostat. (2018). Construction Cost Index (CCI). Retrieved from http://ec.europa.eu/eurostat/tgm/refreshTableAction.do?tab=table&plugin=1&pcode=teiis510&language=en
Flores-Colen, I., & De Brito, J. (2010). A systematic approach for maintenance budgeting of buildings facades based on predictive and preventive strategies. Construction and Building Materials, 24(9), 1718-1729. https://doi.org/10.1016/j.conbuildmat.2010.02.017
Fraunhofer IRB Verlag. (2016). WTA Merkblatt 2-13. Wärmedämm-Verbundsysteme (WDVS) Wartung, Instandsetzung, Verbesserung. München, Germany.
Gaspar, P. L., & De Brito, J. (2008). Quantifying environmental effects on cement-rendered facades: a comparison between different degradation indicators. Building and Environment, 43, 1818-1828. https://doi.org/10.1016/j.buildenv.2007.10.022
Hallowell, M. R., & Gambatese, J. A. (2010). Qualitative research: application of the Delphi method to CEM research. Journal of Construction Engineering and Management, 136(1), 99-107. https://doi.org/10.1061/(ASCE)CO.1943-7862.0000137
Hartman, F. T., & Baldwin, A. (1995). Using technology to improve Delphi method. Journal of Computing in Civil Engineering, 9(4), 244-249. https://doi.org/10.1061/(ASCE)0887-3801(1995)9:4(244)
Krus, M., & Künzel, H. M. (2003). Untersuchungen zum feuchteverhalten von fassaden nach hydrophobierungsmaß-nahmen. WTA-Journal, 2(03), 149-166. Retrieved from http://www.bauportal-zukunft.ru/forschungsberichte/PDF/12_Untersuchung_zum_Feuchteverhalten.pdf
Künzel, H., Künzel, H. M., & Sedlbauer, K. (2006). Long-term performance of external thermal insulation systems (ETICS).
ACTA Architectura, 5(1), 11-24. Retrieved from http://www.viking-house.ie/downloads/Long Term effect of Ext Insulation.pdf
Kuo, N. W., & Yu, Y. H. (1999). An evaluation system for National Park selection in Taiwan. Journal of Environmental Planning and Management, 42(5), 735-745. https://doi.org/10.1080/09640569910975
Kussauer, R., & Ruprecht, M. (2011). Die häufigsten Mängel bei beschichtungen und WDVS (2nd ed.). Cologne, Germany: Rudolf Müller GmbH & Co. KG.
Langdon, D. (2007, May). Life Cycle Costing (LCC) as a contribution to sustainable construction: a common methodology. In Final report summary. Davis Langdon management consulting.
Layzell, J., & Ledbetter, S. (1998). FMEA applied to cladding systems - reducing the risk of failure. Building Research and Information, 26(6), 351-357. https://doi.org/10.1080/096132198369689
Li, W., Zhu, J., & Zhu, Z. (2012). The energy-saving benefit evaluation methods of the grid construction project based on life cycle cost theory. Energy Procedia, 17, 227-232. https://doi.org/10.1016/j.egypro.2012.02.088
Mecca, S., & Masera, M. (1999). Technical risk analysis in construction by means of FMEA methodology. In W. Hughes (Ed.), 15th Annual ARCOM Conference (Vol. 2, pp. 425-434). Liverpool. Retrieved from http://www.arcom.ac.uk/-docs/proceedings/ar1999-425-434_Mecca_and_Masera.pdf
Neumann, H. H. (2009). Praxis-handbuch wärmedämm-verbundsysteme. Baustoffkunde, verarbeitung, schäden, sanierung. Köln: Rudolf Müller.
Olson, K. (2010). An examination of questionnaire evaluation by expert reviewers. Field Methods, 22(4), 295-318. https://doi.org/10.1177/1525822X10379795
Pelzeter, A. (2007). Building optimisation with life cycle costs - the influence of calculation methods. Journal of Facilities Management, 5(2), 115-128. https://doi.org/10.1108/14725960710751861
Pillay, A., & Wang, J. (2003). Modified failure mode and effects analysis using approximate reasoning. Reliability Engineering & System Safety, 79(1), 69-85. https://doi.org/10.1016/S0951-8320(02)00179-5
Preston, C., & Coleman, A. (2000). Optimal number of response categories in rating scale: reliability, validity, discriminating power, and responding preferences. Acta Psychologica, 104, 1-15. https://doi.org/10.1016/S0001-6918(99)00050-5
Rhee, S. J., & Ishii, K. (2003). Using cost based FMEA to enhance reliability and serviceability. Advanced Engineering Informatics, 17(3-4), 179-188. https://doi.org/10.1016/j.aei.2004.07.002
Rowe, G., & Wright, G. (2001). Expert opinions in forecasting: the role of the Delphi technique. Principles of Forecasting. International Series in Operations Research & Management Science, 30, 125-144. https://doi.org/10.1007/978-0-306-47630-3_7
Serpell, A. F. (2004). Towards a knowledge-based assessment of conceptual cost estimates. Building Research & Information, 32(2), 157-164. https://doi.org/10.1080/0961321032000172373
Shafiee, M., & Dinmohammadi, F. (2014). An FMEA-based risk assessment approach for wind turbine systems: a comparative study of onshore and offshore. Energies, 7(2), 619-642. https://doi.org/10.3390/en7020619
Skitmore, R. M., & Marston, V. (1999). Cost modelling. Taylor & Francis. Retrieved from https://books.google.ee/books?hl=en&lr=&id=pmOQAgAAQBAJ&oi=fnd&pg=PA172&dq=building+technology+cost+estimation&ots=hOixXZSD3q&sig=qdRlzDtHa8H0IREZ_D8ioXHPwOU&redir_esc=y#v=onepage&q=building technolog y cost estimation&f=false
Skulmoski, G. J., & Hartman, F. T. (2007). The Delphi method for graduate research. Journal of Information Technology Education, 6(1), 1-21. https://doi.org/10.28945/199
Sulakatko, V., Liisma, E., & Soekov, E. (2017). Increasing con-struction quality of external thermal insulation composite system (ETICS) by revealing on-site degradation factors. Procedia Environmental Sciences, 38, 765-772. https://doi.org/10.1016/j.proenv.2017.03.160
Sulakatko, V., Lill, I., & Liisma, E. (2015). Analysis of on-site construction processes for effective external thermal insulation composite system (ETICS) installation. Procedia Economics and Finance, 21, 297-305. https://doi.org/10.1016/S2212-5671(15)00180-X
Sulakatko, V., & Vogdt, F. U. (2018). Construction process technical impact factors on degradation of the external thermal insulation composite system. Sustainability, 10(11), 3900. https://doi.org/10.3390/su10113900
Thomas, A. V., Kalidindi, S. N., & Ganesh, L. S. (2006). Modelling and assessment of critical risks in BOT road projects. Construction Management and Economics, 24(4), 407-424. https://doi.org/10.1080/01446190500435275
Wetzel, C., & Vogdt, F. (2007). Technical improvement of housing envelopes in Germany. In L. Bragança, C. Wetzel, V. Buhagiar, & L. G. W. Verhoef (Eds.), Improving the quality of existing urban building envelopes – façades and roofs (pp. 46-48). Amsterdam: IOS Press BV.
Wilson, K. J. (2017). An investigation of dependence in expert judgement studies with multiple experts. International Journal of Forecasting, 33(1), 325-336. https://doi.org/10.1016/j.ijforecast.2015.11.014
Woodward, D. G. (1997). Life cycle costing-theory, information acquisition and application. International Journal of Project Management, 15(6), 335-344. https://doi.org/10.1016/S0263-7863(96)00089-0