The Need for Resilience on Infrastructure Projects

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[By Cecelia Fadipe] 

Background to Resilience in Construction

Some studies indicate that return on investments on resilience is four times greater than the costs. from a recent survey, in the past 3 years, just 31% of projects have come within 10% of their budget.

Overview

Significant disaster-related economic losses are increasing on a global scale. These will keep on rising as a result of rising affluence, more dangerous exposure, and in some cases, climate change. Developing nations are disproportionately affected by these occurrences, and their losses are frequently exacerbated by subpar infrastructure, insufficient maintenance, a lack of insurance, and delayed recovery.

By investing in more resilience, the impact and severity can be lessened. By reducing this risk. increased resilience boosts corporate confidence, which in turn encourages innovation and economic growth. There is compelling and scientific justification for investing in increased resilience; in fact, some studies indicate that the return on investments in resilience is four times greater than the costs.

Building Resilience in Construction

Emerging trends that have a direct impact on the construction industry include increasing demand for green construction. The need to decarbonise and reduce carbon footprint to enhance environmental risk resilience and extend the useful economic life of structures,

This includes adopting digital construction techniques using building information systems for efficient building management, and using fiber-reinforced polymer composites for rehabilitating aging structures.

The future of the global construction industry looks promising with opportunities for residential, non-residential, and infrastructure. The major drivers for the growth of this are increasing housing demand and the rising need for infrastructure due to increasing urbanisation and the growing global population.

Resilience in Construction

A report by the Global Infrastructure Hub, states that the world needs to invest $94 trillion in infrastructure by 2040 to meet global demand and build resilience on infrastructure projects.

Building resilience on infrastructure projects and tin construction is crucial for several reasons:

  • Ensuring Project Continuity: Infrastructure projects are long-term investments that require significant resources, time, and effort. Resilience measures help to minimise the risk of disruptions, ensuring the continuity of the project even in the face of unexpected events such as natural disasters, pandemics, or economic downturns.
  • Reducing Economic Losses: The construction industry is a major contributor to the global economy. Disruptions on infrastructure projects due to unexpected events can lead to significant economic losses, both in terms of the cost of restoration and the loss of revenue from delayed completion. Building resilience measures on construction projects can reduce the economic impact of such disruptions.
  • Ensuring Public Safety: Infrastructure projects such as bridges, roads, and buildings play a vital role in providing public amenities and ensuring their safety. Resilience measures help to minimise the risk of structural failures, ensuring the safety of the public who uses these facilities.
  • Meeting Environmental Challenges: Climate change poses a significant challenge to infrastructure projects and the construction industry. Resilience measures can ensure that projects are designed and constructed to withstand the impact of extreme weather events like floods, storms, and heat waves. Building resilience in infrastructure projects and in construction is essential to ensure project continuity, reduce economic losses, and ensure public safety, and environmental challenges.

Resilience in Infrastructure Projects

A recent world bank report states that just 3% of the cost of investment can build extra resilience into infrastructure projects. In the UK, construction is estimated at £14.5bn employing over 2 million.

Introduction

Infrastructure projects play a key role in the efficient functioning of society. Firstly, they are responsible for integral services offered in a country through roads, housing, hospitals, and airports to name a few. Secondly, the construction industry plays a huge role in the economy. Therefore, the UK and other major economies are reliant on the success of the construction industry.

What is infrastructure resilience?

Infrastructure resilience is the ability to withstand shocks and pressure, adapt to changing situations, and efficiently recover from them. Resilience infrastructure will be able to continue to provide essential services due to its ability to withstand adapt and recover positively from whatever shocks and stresses it may face now and in the future. infrastructure resilience matters whether you are in government developing policy; n investor; an engineer responsible for the design, construction or retrofitting of safe infrastructure; an asset operator ensuring continuity of service; or a business concerned about the continuity of its supply chain.

Why do we need infrastructure to be resilient?

Existing infrastructure systems are increasingly complex and interdependent. These systems are under pressure due to growing demand and have become fragile due to fragmented governance and a lack of investment in regular maintenance. From climate change to cyber-attacks, infrastructure systems have to operate in an increasingly uncertain future where we cannot predict or avoid all shocks and stresses. Therefore, it is essential for infrastructure to be prepared for the threats that we can anticipate, and to be able to respond to the unexpected, so that it continues to provide access to the essential services on which society depends.

Key Terms in Infrastructure Resilience

Project finance is especially useful on private and publicly funded long projects. Project financing involves structuring such that the project capital can be utilised throughout the life cycle of the project.

Infrastructure Project Resilience

Infrastructure projects require significant amounts of capital investments and therefore any unanticipated issues can have a decisive impact on the success of a project. Due to the long timeframe of projects in the industry, resilience must be built up to ensure projects do not collapse and completion is not delayed.

Risk Management

Events such as Brexit, Covid-19, and the political conflict have created uncertain economic conditions which have been challenging for firms to navigate. An example of a construction project which failed to adopt appropriate risk management protocols and cost management and assurance controls is the Scottish flood defence project which has tripled in costs to over £1 billion since its commencement in 2015.

Project Financing

Resilience is integral in infrastructure projects due to the requirement to have consistent investment financing over the project lifecycle. One method to ensure consistent financing in infrastructure projects is through project financing. This involves structuring a project so that the project capital can be used throughout the life cycle of the project to secure the financing to complete the project. This is especially useful on private and publicly funded longer-term projects which are prevalent in the construction industry.

Robust Assurance Strategy

Businesses need to adopt an appropriate finance and cost assurance framework. This helps communicate a transparent understanding of the project’s financial performance and any potential risks on the project to all stakeholders. With the opening of the UK Infrastructure Bank in 2021, there appears to be plenty of opportunity for construction projects to access capital, especially for environmentally friendly projects.

Economic Impact of Infrastructure Projects

In 2020, the UK government established the National Infrastructure Bank with initial capitalisation of £12 billion to support public and private investment in infrastructure projects that promote economic growth and resilience.

The economic impact of disruptions to infrastructure projects can be significant, as these projects often require a significant investment of resources, time, and effort. Disruptions can result in delays, cost overruns, and lost revenue, all of which can have a ripple effect throughout the economy.

  • For example, if a major road or bridge is closed due to disruption such as a natural disaster, it can disrupt the flow of goods and services, impacting local businesses and the wider supply chain. This can lead to lost revenue for businesses, increased costs for consumers, and a decrease in economic activity overall.

Similarly, disruptions to large-scale infrastructure projects such as power plants, water treatment facilities, or airports can result in significant economic losses.

  • For example, delays in the construction of a new airport can result in lost revenue for airlines, tourism companies, and other businesses that rely on the airport’s operations.

Building resilience measures in infrastructure projects can help to mitigate the economic impact of disruptions. For example, designing buildings and infrastructure to withstand extreme weather events, ensuring redundancy in critical systems, and investing in maintenance and repairs can all help to minimize the risk of disruptions and reduce the economic impact of unexpected events.

Overall, the economic impact of disruptions in infrastructure projects highlights the importance of building resilience measures into these projects to ensure continuity, reduce economic losses, and support the overall health of the economy.

Statista: The infrastructure construction output in Great Britain has decreased slightly in 2022. The index decreased in 2020 but peaked again in 2021. This index measures the construction output of infrastructure, such as roads, bridges and pipes, within Great Britain compared to the output of infrastructure in 2019. In 2021, the infrastructure output was approximately twice as high as in 2009.

Building Resilient Materials and Structures

In 2021, the UK government published a National Infrastructure Strategy that includes commitments to invest in clean energy, digital infrastructure, and transportation systems to promote economic growth and resilience.

Building resilient materials and structures is an essential part of creating infrastructure that can withstand natural disasters, extreme weather events, and other disruptions. Resilient materials and structures can help to ensure public safety, reduce the risk of structural failure, and minimize the economic impact of unexpected events.

  • Concrete and steel: These materials are often used in the construction of large buildings and infrastructure projects due to their strength and durability. When designed and constructed properly, buildings made from concrete and steel can withstand earthquakes, high winds, and other natural disasters.
  • Cross-laminated timber: This material is a sustainable alternative to concrete and steel and has become increasingly popular in recent years. Cross-laminated timber is made by layering pieces of wood in alternating directions, creating a strong and durable material that can withstand significant force.
  • Earthquake-resistant buildings: Buildings in earthquake-prone areas can be designed with specific features such as base isolation systems, which help to absorb seismic waves and reduce the risk of structural damage.
  • Storm-resistant structures: Buildings and infrastructure in areas prone to hurricanes, tornadoes, and other severe weather events can be designed to withstand high winds and heavy rain. This can include features such as reinforced roofs, impact-resistant windows, and drainage systems.
  • Sustainable infrastructure: Sustainable materials and practices can also improve the resilience of infrastructure projects. For example, green roofs and permeable pavement can help to reduce the impact of heavy rain and flooding, while energy-efficient design can reduce the impact of power outages.
  • Building resilient materials and structures is essential for ensuring the safety of the public and reducing the economic impact of unexpected events. By investing in materials and practices that prioritize resilience, infrastructure projects can be designed to withstand a wide range of disruptions and provide long-term benefits for communities.

Environment Challenges of The Construction Sector

The Institution of Civil Engineers (ICE) gave the UK’s infrastructure a grade of C- in their 2020 State of the Nation report, with categories such as flood management and energy infrastructure rated as in poor condition.

Infrastructure projects and the construction industry in general face several challenges that can impact the sustainability and resilience of projects. Some of the main challenges include:

  • Climate Change: Climate change poses a significant threat to infrastructure projects and the construction industry. Rising sea levels, more frequent and severe weather events, and changes in temperature and precipitation patterns can all impact the design, construction, and operation of infrastructure. This can lead to increased costs, reduced performance, and potential safety risks.
  • Energy Consumption: The construction industry is one of the largest consumers of energy, accounting for a significant portion of global energy use and greenhouse gas emissions. Infrastructure projects also require significant amounts of energy to operate, particularly in industries such as transportation and energy generation. Finding ways to reduce energy consumption and improve energy efficiency is critical for reducing the environmental impact of these projects.
  • Natural Resource Depletion: Infrastructure projects can require large amounts of natural resources, such as water, timber, and minerals. The extraction and use of these resources can have significant environmental impacts, including deforestation,
  • Waste Management: Construction and infrastructure projects generate large amounts of waste, including construction debris, hazardous materials, and demolition waste. Proper waste management is essential for protecting the environment and public health. This can include recycling and reuse of materials, responsible disposal of hazardous waste, and reducing waste.
  • Biodiversity Loss: Infrastructure projects can have significant impacts on biodiversity, particularly in areas where natural habitats are disrupted or destroyed. Protecting biodiversity is critical for maintaining ecological balance and promoting sustainability. This involves incorporating green infrastructure, such as parks and green roofs, into projects, and conducting environmental impact assessments to identify biodiversity risks.

Technology and Resilience in Infrastructure Projects

According to a 2019, survey conducted by the Institution of Civil Engineers, 97% of infrastructure professionals believe that digital technologies will have a positive impact on the industry’s ability to deliver infrastructure projects.

Technology plays a critical role in building resilience in infrastructure projects. Innovative technologies can help to improve the design, construction, operation, and maintenance of infrastructure, making it more resistant to disruptions and better able to withstand unexpected events. Some of the key ways that technology can support resilience in infrastructure projects include:

  • Risk assessment and planning: Technology can help to identify and assess risks to infrastructure projects, allowing planners to incorporate resilience measures into the design and construction of infrastructure. This can include using simulation and modelling tools to evaluate the impact of natural disasters, extreme weather events, and other disruptions on infrastructure.
  • Sensor technology: Sensor technology can be used to monitor and analyze the performance of infrastructure in real time. This can include sensors that detect structural stress, temperature, humidity, and other factors that can impact the resilience of infrastructure. By collecting and analyzing data, infrastructure managers can identify potential issues before they become critical, and take action to address them.
  • Advanced materials: Advanced materials, such as nanomaterials and composites, can help to improve the resilience of infrastructure projects. These materials can be used to create structures that are stronger, lighter, and more durable than traditional materials, making them better able to withstand extreme weather events and other disruptions.
  • Autonomous systems: Autonomous systems, such as drones and robots, can be used to inspect and maintain infrastructure. This can help to identify potential issues early and address them before they become critical, reducing the risk of failure and improving the overall resilience of infrastructure.
  • Data analytics and artificial intelligence: Data analytics and artificial intelligence can be used to identify patterns and trends in infrastructure performance data. This can help to predict potential issues before they occur, allowing managers to take action to prevent disruptions and improve the resilience of infrastructure.

Overall, technology has the potential to play a critical role in building resilience in infrastructure projects. By incorporating innovative technologies into the design, construction, operation, and maintenance of infrastructure, we can create a more resilient and sustainable infrastructure that can better withstand unexpected events and provide long-term benefits for communities.

Collaboration & Resilience on Infrastructure Projects

According to a survey by the UK Construction Leadership Council, 89% of respondents believe that collaboration between clients, contractors, and suppliers is critical to improving productivity in the construction industry.

Collaboration is essential for building resilience in infrastructure projects. Infrastructure is complex, and building resilient infrastructure requires the involvement of multiple stakeholders, including designers, engineers, contractors, government agencies, and communities. Collaboration among these stakeholders is critical for identifying risks, developing solutions, and implementing measures to improve the resilience of infrastructure projects. Some of the key reasons why collaboration is important for building resilience in infrastructure projects include:

  • Shared expertise: Collaboration brings together a diverse range of stakeholders, each with their own areas of expertise. By working together, stakeholders can share knowledge and experience, identify potential risks and develop solutions that draw on the collective expertise of the group.
  • Improved decision-making: Collaboration allows stakeholders to consider a range of perspectives and opinions, which can lead to better decision-making. By working together, stakeholders can identify trade-offs and find solutions that balance competing priorities, such as cost, performance, and sustainability.
  • Increased transparency: Collaboration promotes transparency and open communication, allowing stakeholders to share information and identify potential issues early. This can help to prevent misunderstandings and improve the overall effectiveness of infrastructure projects.
  • Community engagement: Collaboration with communities and other stakeholders can help to ensure that infrastructure projects are designed to meet the needs of the people they serve. By involving communities in the design and planning process, infrastructure projects can be better aligned with local priorities and values, improving their acceptance and resilience.
  • Joint problem-solving: Collaboration allows stakeholders to work together to identify potential issues and develop solutions that draw on the strengths of each stakeholder group. This can help to build consensus and support for infrastructure projects, improving their overall resilience and effectiveness.

Overall, collaboration is essential for building resilience in infrastructure projects. By bringing together diverse stakeholders, sharing expertise, improving decision-making, increasing transparency, engaging communities, and promoting joint problem-solving, we can create an infrastructure that is better able to withstand unexpected events and provide long-term benefits for communities.

Resilient Construction Practices

The United Nations Development Programme estimates that by 2050, the global population exposed to climate-related hazards will increase by 50%, highlighting the importance of incorporating resilient construction practices in new and existing buildings.

Resilient construction practices are essential for ensuring that infrastructure projects can withstand unexpected events and continue to provide long-term benefits for communities. Here are some key resilient construction practices:

  • Robust building codes and standards: Building codes and standards provide a framework for ensuring that buildings and other infrastructure projects are designed and constructed to withstand expected hazards. By adopting robust building codes and standards, construction teams can help to ensure that infrastructure projects are resilient to a range of hazards, from earthquakes and hurricanes to flooding and wildfires.
  • Use of resilient materials: Using resilient materials is another important strategy for improving the resilience of infrastructure projects. This can include materials that are resistant to corrosion, fire, and other hazards, as well as materials that can withstand extreme weather events and other disruptions.
  • Incorporation of redundancy and flexibility: Another key strategy for improving resilience is to incorporate redundancy and flexibility into the design of the project. This can include designing backup systems and alternative routes or modes of transportation, as well as incorporating modular or flexible designs that can be adapted to changing needs.
  • Use of green infrastructure: Green infrastructure, such as green roofs and permeable pavement, can help to improve the resilience of infrastructure projects by reducing the risk of flooding, improving air quality, and providing other environmental benefits. By incorporating green infrastructure into their projects, construction teams can help to improve the overall sustainability and resilience of infrastructure projects.
  • Community engagement and involvement: Engaging with communities and other stakeholders throughout the construction process is essential for building resilience. By involving communities in the design and construction process, construction teams can ensure that infrastructure projects are aligned with local needs and values, improving their acceptance and resilience.
  • Overall, resilient construction practices are critical for ensuring that infrastructure projects can withstand unexpected events and continue to provide long-term benefits for communities. By adopting robust building codes and standards, using resilient materials, incorporating redundancy and flexibility, using green infrastructure, and engaging with communities, construction teams can improve the overall resilience of infrastructure projects and ensure their long-term sustainability.

Frequently Asked Questions

Questions are often asked about how resilience can be incorporated into construction planning and design. Resilience can be incorporated into construction planning and design by identifying potential risks and hazards, selecting appropriate building materials and design features, and ensuring that buildings and infrastructure are designed to withstand anticipated hazards.

What is infrastructure resilience?

  • Infrastructure resilience is defined as building roads and bridges and its capacity to withstand and recover from disruptions including natural catastrophes, climate change, technological failures, and other risks.

How can infrastructure resilience be achieved?

  • Resilience is achieved through designing and building infrastructure that is flexible and sensitive to changing conditions and minimizing the effects of disruptions on infrastructure and communities.

Why is it important to build resilience in infrastructure projects and the construction industry?

  • Improving economic and social well-being to encourage economic activity and employment while maintaining the availability of essential commodities and services such as healthcare, food, and water.
  • Resilient infrastructure reduces the risks and impacts of natural disasters and other hazards for instance bridges designed to withstand flooding can minimize the impact of floods on transportation networks.
  • Increased reliability and durability: Resilient infrastructure and construction are designed to withstand and recover from disruptions and hazards, reducing the risk of downtime, damage, and associated costs.
  • Reduced operational costs: Resilient infrastructure and construction can reduce operational costs by incorporating energy-efficient systems and sustainable materials and construction practices.
  • Enhanced environmental performance: Resilient infrastructure and construction can improve environmental performance by incorporating sustainable materials and construction practices and reducing energy use and emissions.
  • Improved stakeholder engagement by demonstrating a commitment to safety, sustainability, and social responsibility, enhancing overall reputation and brand value.

What are the main risks and uncertainties that infrastructure projects and the construction industry are exposed to?

  • Technological disruption: Technological advances and innovation can impact the construction industry and infrastructure operations, such as the adoption of new materials, tools, and construction methods.
  • Climate change: Climate change is increasing both the severity and frequency of natural disasters and other extreme weather events, which can have an effect on infrastructure efficiency and increase costs.

How can stakeholders in infrastructure projects collaborate to build resilience?

  • Develop a shared understanding of risks and vulnerabilities and create a resilient culture
  • Incorporate resilience into project design and planning
  • Align incentives and funding
  • Cybersecurity threats: Cybersecurity threats, such as hacking and data breaches, can disrupt operations and compromise sensitive information.
  • Financial risks: Infrastructure projects necessitate substantial initial expenditures, and financial risks such as cost overruns, delays, and interest rate changes can have an impact on project viability and income.
  • Natural Disaster: Natural catastrophes such as hurricanes, earthquakes, floods, and wildfires can harm infrastructure and disrupt operations, putting infrastructure projects and the building industry at risk.

How can infrastructure projects and the construction industry be designed and constructed to be more resilient?

  • Conduct risk assessments: A comprehensive risk evaluation can aid in the identification of possible hazards and vulnerabilities that infrastructure projects and the construction industry may encounter.
  • Adopt resilient design principles: Resilient design principles can be incorporated into the design of infrastructure projects and the construction industry to reduce the risks of disruption and damage from natural disasters and other hazards.
  • Enhancing redundancy and diversity can increase the resilience of infrastructure projects and the construction industry.
  • Encourage partnership and communication. Collaboration and communication between stakeholders can help ensure that infrastructure projects and the construction industry are designed and constructed to meet the needs of all stakeholders and are adaptable to changing conditions.
  • Consider future risks and uncertainties: Future risks and doubts can influence design, building, and material choices because it aids in the planning of projects related to infrastructure and the construction industry to be adaptable.

CONTACT

“Our personalised independent approach and forward thinking strategy supports leaders. By embedding sustainability in our activities, we support innovative businesses and leaders on infrastructure projects and construction contracts with their cost assurance and strategy. This leverages 25 years of experience across commercial, finance project control functions and as an auditor. CFBL helps optimise cost, minimise risks and maximise value through our services.”

What does CFBL Consulting do?

CFBL consulting offers cost-assurance audits and sustainable strategy consulting services. This includes an initial ESG assessment, an X-ray view of actual costs to prevent or evidence greenwashing, impact reporting, a payroll audit to safeguard equal pay, and practical training on how to embed ESG KPIs into finance, commercial, and project investment decisions. We identify, resolve, and follow through. By establishing ourselves as strategic partners, we govern and help implement sustainable strategies. Our roadmaps ensure that project plans are successful, as a result, we measure our success by yours.

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Sustainability & ESG Strategy Tips – How can CFBL Consulting help

  • Developing and implementing a sustainable business strategy for growth/scaling
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Infrastructure Projects – Tips & How can CFBL Consulting help

  • Cost assurance: implementing capex people, process, systems & controls
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  • Independent contract auditor role: Undertaking internal project/contract auditor role
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  • Payroll audit: Independent HR, payroll, carbon cost, gender pay-gap/balance audit
  • Business case: Implementing Capex strategy/developing investment business cases
  • ESG Finance training: upskilling staff/supply chain on ESG KPIs in decision making
  • ESG protocols: training & designing controls, tools, and templates for ESG reporting

SME Business Strategy -Tips & How can CFBL Consulting help

  • Scale-up investor funding pitch diagnostic assessment and recommendations
  • Developing a sustainable business plan for scaling up, funding, and advisory
  • Developing/implementing strategy: sustainable business strategy for growth/scaling
  • 5-Yr Strategic business planning: financial statements, analysis for funding & grants
  • People training & upskilling: business and supply chain engagement and training
  • Independent Fintech/Transformation Advisory: minimising risk and optimising ROI
  • Capex Investments: optimising grants, funding R&D tax credits & capital allowances
  • Financial management: tax, planning & implementing financial controls for resilience
  • Finance business partnering providing strategic advice in financial decision making

Fintech & Digital Transformation Advisory – How can CFBL Consulting help

  • Commercial systems: advisory on commercial, contract, cost, audits & projects
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