Cost impacts of circular applications to construction activities: a case of Sri lanka.

Abstract

The need to transition towards a circular economy (CE) paradigm has increased due to the growing environmental burden associated with rising resource consumption and waste generation in the construction industry. Although the construction phase constitutes a relatively small proportion of the overall building life cycle, it exerts a disproportionately high environmental impact due to the extensive use of virgin materials. Nevertheless, the implementation of CE during this phase is constrained by the lack of awareness of its economic incentives. Therefore, this study seeks to assess the cost impacts of integrating CE into construction activities within the Sri Lankan context. Using a multiple case study approach, the research evaluates the cost implications of CE practices in construction of two multi-storied buildings. Data were gathered through semi-structured interviews and review of documents, including Bills of Quantities and as-built records. The findings demonstrate that CE applications are currently concentrated within eight (out of forty-one) major activities, including excavation, concrete and masonry, primarily operationalised through basic 3R (Reduce, Recycle, Reuse) principles. This limited applications of CE yielded total cost savings of approximately 2% to 4% of the contract value. Notably, of the two buildings, the green building exhibited higher savings (4.39%) compared to the non-green building (1.89%). By providing empirical evidence of economic cost savings resulting from CE applications, the study contributes to enhancing the adoption of CE in the construction sector. These findings highlight that the greater integration of CE practices during construction stage would enhance the sustainability of the construction projects.