Berlin:
Combining the re-use of building components and job creation

EA.UE

,

Country: a) Western Europeb) Germany
Language:
Type: Project, 1
Area: City/Town, > 1 million
Actors: Local government, Regional government, Economic sector, NGO, Publ.-priv. partnership
Funding: Local government, Regional government, European Union, NGO, Publ.-priv. partnership
Topics: Architecture and construction
Building materials
Employment
Housing (and new settlements)
Information and public participation
Renewable resources
Solid waste
Objectives: Improve intersectoral cooperation
Increase public awareness
Reduce resource consumption
Waste avoidance
Waste recycling
Instruments:

Abstract:

So far the careful rebuilding of pre-war houses and the re-use of building components are neglected fields in the recycling sector. However, some cities have supported model projects which are designed to test the viability of such activities. In Berlin in 1991 the building component project BEL (Bau ElementeLager) was funded the EU- sponsored Environmental Improvement Programme in order to gain experience on the demand for this service. The project can be regarded as an example for good practice in urban development for the following reasons:

Background and Objectives

129

Local environment-related job creation initiatives are particularly suitable to accommodate 'green' model projects for sustainable urban development which require a set of innovative ideas, such as entering into previously unexploited areas of activities, new organisational arrangements, testing economic viability etc. Especially the sector of construction and demolition waste is still a candidate for environmentally adapted orientation towards waste minimisation.

As early as 1991 a Berlin project for recycling building components was initiated by GSE gGmbH (Gesellschaft für StadtEntwicklung gGmbH), a non-profit company which is engaged in infrastructural and social planning of urban renewal projects in Berlin (in 1997 the non-profit company got a new name as "GSE-NBB Nachbarschaftszentrum Beschäftigung und Bildung GmbH"). The concept was to combine activities in the urban renewal sector with principles of a careful re-building strategy (behutsamer Rückbau), proper separation of building components as well as repair and selling recycled building components. In short, the principles of a recycling economy and of job creation and professional qualification were combined in order to prolong the life-cycle of building components and to integrate environmentally oriented training.

As the project was located in the western part of the city it was not eligible for funds from Berlin's Ecological Rehabilitation Programme which are only directed towards upgrading environment- related activities in the eastern part of the city (Objective 1). Therefore, the project, named BEL (BauElemente Lager - building components company), was funded from the Environmental Improvement Programme for SMEs (Objective 2) which had been designed for the western part of Berlin in 1989, even before the Wall came down. This programme, co-financed by funds from the European Fund for Regional Development, primarily aimed to improve the level of environmental protection measures in SMEs. However, a number of projects were selected for combined funding from the Environmental Improvement Programme and job creation funds (ABM) (cp. Berlin case studies on the Environmental Improvement Programme and the Ecological Rehabilitation Programme).

Implementation

129

Project date and status

The project was started in 1991 as a funded project and it currently operates as a nonprofit company.

Strategy

As the BEL project came up with a completely new service it had to pass through all the stages of step-by-step development. In consequence, the following strategic planning took place:

Start up phase (May 1991 to September 1993)

Phase of market entry and trail operation (October 1993 to December 1995).

Phase of labour funding only (since January 1996)

Activities

During the various stages of the project it became obvious that new services had to be continuously adapted to day-to-day practices. The process of adjustment is beneficial for both the activities and organisation of the business and the principles of employment and training. During its business activities BEL found out that all building components which have wood as a main material should form the core of its business.

There are several reasons in favour of wood:

Nevertheless, besides wooden building components (e.g. ceiling beams, wall covering, floors, doors, window units, stairs) BEL also deals with roof tiles, radiators, sanitary equipment and light fittings.

The business has set up units for re-building, separation, reprocessing, surface treatment, a joiner's shop, sales, transport, administration and technical management. On average BEL has a workforce of 70 of which approximately 15 jobs were permanent and the remaining places were filled by transitional workers qualified as bricklayer, metal worker, roofer, joiner, painter and carpenter. In 1995 the qualification level of staff was three master craftsmen, nine journeymen and 41 semi- or unskilled workers. The fields of training are joinery, painting, and sanitary / metal worker. The training is oriented towards integrating environment-related issues into the training programme (e.g. principles of careful re-building, separation criteria).

The current rate of re-integration of transitional workers into the first labour market is approximately 20% which is a satisfying rate in the difficult situation in the building and construction industry. In view of the rate of transfer, the national Federal Labour Office approved continuation of its job creation funds for 50 workers after the end of the funding by the Environmental Improvement Programme. However, the higher numbers of transitional workers also had an unfavourable impact as the level of professional qualification was lowered and, therefore, more attention and time had to be given to training. Another phenomenon was decreasing motivation and the higher number of staff away sick at the end of the transitional period. This practice coincided with the departure of master craftsmen. In consequence, journeymen had to do the job of training and instruction.

In addition, as a result of new regulations in the Employment Promotion Act in April 1997, BEL has to provide annually written statements by the Berlin Ministry of Urban Development, Environmental Protection and Technology, the Berlin Ministry of Economy, the Chamber of Crafts, and the Joiners' Guild, that its business does not affect private SMEs.

Partners

BEL has set up a new service which currently is not offered by private companies due to unprofitability without funding of at least labour costs. Therefore, BEL had not only to break new ground with its business but also with its organisational structure. Currently BEL is cooperating with all the potential partners in the sector of building and construction. On the supply side cooperation with Gebr. Kemmer, a major construction company, is important, as is constant communication with the local District Departments for Planning and Construction (Bezirksbauämter). On the demand side the partnerships with small and medium-sized small craft firms is worth mentioning as they offer BEL´s recycled building components for sale as an additional service to their customers. Currently, BEL is looking for potential partners in the DIY and furniture business which might extend their range of goods to include recycled building components.

Furthermore, BEL has been open to a wide range of contacts with other environmental initiatives and job creation projects throughout Germany as well as in Denmark.

Financing and resources used

129

In the initial phase 100 % of the costs were funded, during the market entry phase the average funding was 83 %, and since the expiration of funding from the Environmental Improvement Programme (UFP - Umweltförderprogramm), 50 % of labour costs have been paid by the Federal Labour Office. Between 1991 and 1995 the total costs amounted to 7,143,366 DM of which 5,719,370 DM had be funded by the UFP. The funded labour costs amounted to 1,423,966 DM.

In 1997 and 1998 approximately nearly 20% of BEL's Budget was generated by its own revenue.

Results and Impacts

129

As BEL has gained know-how and experience in a so far unexploited sector of recycling one can list effects under three main themes:

Regarding the introduction of procedures for careful re-building and re-use of building components, BEL has optimised removal on site and separation methods and, in consequence, a total volume of building components of approximately 20,000 m3 has been re-used. This amounts to a volume that would normally cost approximately 2 million DM for land fill disposal. However, there was also a set-back in the project as the process of re-varnishing wooden items had to be stopped due to technological shortcomings.

The introduction of model projects for careful re-building and re-use of building components is closely linked to public acceptance of recycled building components. Due to cooperation with non- profit housing associations, public and social institutions, small craft firms and companies in the recycling business, BEL has established a network to offer its goods to a range of customers. Since 1992 it has established a clientele of more than 3,000. Currently, there are regular stocks of 800 doors, 400 window units, 200 items of sanitary equipment and 800 m square meters flooring available form the 3,500 square meters sales department.

Since 1991 approximately 500 transitional workers have been employed at BEL. They have a one or two year contract which is financed by the Federal Labour Office (55% of total costs via job creation funds, ABM), Land Berlin's local labour market programme (25% of total costs through funds from the regional job creation programme, ARP), and EU funds (20% of the total costs through ESF).

Barriers and conflicts

129

In particular, the BEL project has to face barriers in two areas. On the one hand labour funds are decreasing progressively, on the other hand the legislative framework for recycling of building components is insufficient as there is no local regulation on this issue. If the Berlin Ministry for Housing, Construction and Traffic were to introduce a mandatory regulation on re-use of building components, framework conditions for BEL's operation would improve radically.

Lessons learned and transferability

129

As BEL started its activities at the beginning of the 1990s, it can now serve as a tried and tested model in its particular sector. Especially in view of a possible new regulation on environmentally friendly disposal of demolition and building waste (Verordnung über die Entsorgung von Baurestabfällen), the following features of the BEL case study are particular relevant for a transfer of experience:

There is a high level of transferability as the organisational model can be easily adjusted to local needs. Some cities have started to support such initiatives (e.g. the CREATE initiative in Liverpool).

Source of Information

129

EA.UE, (ed.) 1997: Job creation in the environmental sector. Local employment initiatives in Europe, Berlin

Contact:

Name:Langfermann
Firstname:Bernard
Telefon:+49 / 30 / 335 00 81 2
Telefax:+ 49 / 30 / 335 00 81 3
Address:GSE-NBB GmbH
Bau-Elemente-Lager
Project manager of BEL
Neuendorfer Straße 64-69
D - 13585 Berlin
Germany

Cities:

Berlin :

Berlin has a population of almost 3.5 million of which approximately 11% are foreign citizens. The wider conurbation has an additional population of nearly one million. The city covers 889 square kilometres; 38 km from north to south and 45 km from east to west. 24 per cent of the city’s surface is water and navigable waterways are 197 km in length. In size it is almost as large as the densely populated Ruhr area in North Rhine Westphalia. Berlin is the largest city in Germany, and one of the sixteen regional States (Bundesländer) of the Federal Republic of Germany.

The unified municipality of Berlin is a decentralised body divided into 23 districts (Bezirke). The districts have between 50,000 and 300,000 inhabitants. They carry responsibility for local politics and their own administration. Unlike independent municipalities, however, they do not have financial autonomy but are allocated funds by the City Government, the Senate of Berlin. The main authority for the City as a whole is the Senate which is divided into different administrative departments (comparable to Ministries in other German Länder).

Although Berlin has experienced a steady decline in industry, there are still over 200,000 people working in the manufacturing sector. Approximately 230,000 of the 1.5 million citizens in the workforce are employed in trade and about 750,000 people have jobs in service, primarily in the public sector.

In addition, Berlin is a centre of environmental research as well as technology, and a great number of businesses are engaged in environment-related activities. According to a study by the ifo Institute in Munich and the IÖW (Institute for Ecological Economic Research) in Berlin, 400 companies with 13,000 employees are directly involved in environmental protection (engineering offices, and producers and distributors of environmental technology). This number has tripled within the last ten years, and half of the companies have started as new businesses since 1990. Furthermore, Berlin is a stronghold of scientific research with approx. 100 companies involved in measurement and analytical activities, approx. 80 eco-research institutes (including universities), and 45 public administrations and authorities in charge of environmental matters.



Population:

3450000

Project was added at 27.02.1998
Project was changed at 21.08.2001

Extract from the database 'SURBAN - Good practice in urban development', sponsored by: European Commission, DG XI and Land of Berlin
European Academy of the Urban Environment · Bismarckallee 46-48 · D-14193 Berlin · fax: ++49-30-8959 9919