Quality and customer confidence in nZEB renovation (poster)

Quality and Customer

Confidence in nZEB renovation

Disclaimer: The sole responsibility for the content of this publication lies with the authors. It does not necessarily reflect the opinion of the European Union. Neither the EASME nor the European Commission are responsible for any use that may be made of the information contained therein.

COHERENO

Collaboration for housing nZEB renovation

DRIVERS, SATISFACTION WITH THE END RESULT AND

PROBLEMS THAT OCCUR DURING NZEB RENOVATION

1

A mixture of drivers lead home owners to undertake an nZEB renovation. Particularly, building conditions and

environmental reasons play an important role.

2

Home owners undertaking an nZEB renovation have specific energy saving targets in mind. About 61% had an

energy performance level in mind prior to the start of the renovation process, another 19% report targets were set during the process. After completion of works, home owners do not always feel that their energy saving objectives are completely achieved (only 38% confirmed this).

3

Potential problems can occur at all stages of the renovation process. Frontrunners in the Netherlands most

frequently point that what goes less well is often related to the diagnosis (30%), design (24%) and execution (18%). The most frequently reported problems are related to:

• DIAGNOSIS independent energy advice as a starting point (83%)

• DESIGN knowledge with the architect/advisors ( 83%) • EXECUTION on-site coordination and cooperation (83%) The following possible solutions were pointed out by Dutch frontrunners:

• DIAGNOSIS offering guarantees according the ambition of the homeowner

• DESIGN use integrated design processes, scrum teams • EXECUTION provide control and learning on site and lean

construction processes

KNOWLEDGE AND SKILLS OF ACTORS INVOLVED,

QUALITY OF PRODUCTS USED AND THEIR INFLUENCE

ON CUSTOMER CONFIDENCE

4

About half of the frontrunners today (51%) makes use of quality assurance instruments, to ensure they have

the proper skills/knowledge for nZEB renovation and to ensure the quality of products they use on site.

The most frequently used mechanisms today are: • Handbooks, guidelines, guidebooks (75%) • Training programs and courses (75%) • On-site training or experience (67%)

• Quality labels and certification schemes for products (58%)

5

63% of the home owners claim ensuring themselves about

the skills of actors involved before deciding who to work with, it is however not entirely clear how. Most frequently

reported mechanism are: actors having on-site training or expertise (33%) and actors recommended by people they know (27%).

6

33 % of home owners use instruments providing assurance

on the quality of products used on site. 44% of these used

“other means” to ensure the right quality of the products, such as common sense, own research (e.g. using internet) and recommendations by architect or energy advisor.

INSTRUMENTS RELATED TO THE DELIVERY OF A

COMMON END RESULT AND THEIR INFLUENCE ON

CUSTOMER CONFIDENCE

7

Some frontrunners today confirm the use of instruments

to ensure all parties involved in the nZEB renovation work

towards a commonly agreed end result. The average

market penetration of these instruments could rise from 35% today to 61% in the future.

Most frequently used mechanisms are energy advice according to code of good practice (50%) and third-party endorsement e.g. list of recognized energy experts/advisors (50%).

8

End result related mechanisms - particularly quality labels

and performance contracting - are not always providing

the needed trust to home owners. On average the

end-result related quality assurance instruments are considered to provide confidence to 18% of home owners.

The QA instruments that provide the highest confidence are: • Energy advice according to code of good practice (35%) • Informal common agreement amongst actors involved on

the aspired end result (15%)

INSTRUMENTS RELATED TO COLLABORATION AND

COORDINATION OF THE RENOVATION PROCESS AND

THEIR INFLUENCE ON CUSTOMER CONFIDENCE

9

Various frontrunners today make use of instruments to ensure a collaborative and coordinated renovation process, such as user guides with clear maintenance

guidelines and instructions (50%), maintenance contracts (33%) or a project/process manager in charge of overall coordination (33%). On average 13% of the respondents indicate that they consider introducing additional quality assurance instruments and mechanisms and there is a rather strong interest in using protocols, checklists and self-assessment instruments for renovation processes.

10

A majority of customers (55%) does not know if process related quality assurance instruments provide confidence.

1. Data were obtained by means of a survey with 16 Dutch home owners that have undertaken an nZEB renovation, and by means of six in-depth interviews with supply-side frontrunners already engaged in nZEB renovation and a workshop with 21 supply-side frontrunners. For more details, see also the COHERENO reports ‘Barriers and opportunities for business collaboration in the nZEB single-family housing renovation market’, ‘Customer segmentation and value propositions for suppliers’ and the ‘Creating customer confidence through quality assurance’. For the applicable definition of nZEB renovation we refer to the Dutch nZEB radar. All additional information can be found on www.cohereno.eu

10 facts about Dutch home owners and frontrunners

involved in nZEB renovation of single-family homes

1

Co-funded by the Intelligent Energy Europe

Programme of the European Union

COHE

_{Collaboration for housing nZEB renovation}

RENO

1

According to the survey with home owners the following aspects are of value to customers and play a role in the decision making process leading towards an energy saving renovation:

• Upgrade of the building (one or several building related problems trigger the process)

• Environmental reasons

• Improved indoor comfort or health conditions • Financial reasons

In other Cohereno countries also other aspects were mentioned: • Reduced energy costs

• Smooth renovation process

• Confidence in delivery of expected end result

A successful value proposition should appeal to a mix of drivers.

2

Many Dutch home owners (62%) did not always feel that their energy saving objectives were completely achieved.

The value proposition should somehow address the achievement of specific energy performance levels.

6

Prior to the start of activities, actors involved should

commonly agree together with their customer on the energy performance level and energy targets. This is necessary to

ensure all actors work towards a common end result and to offer guarantees after completion. A majority of home owners

undertaking an nZEB renovation (80%) sets specific energy targets for the nZEB renovation work. A majority of the Dutch home owners (61%) even has a specific energy performance level in mind prior to the start of the renovation process.

7

The starting point for an nZEB renovation should be a properly executed energy advice. 83% of the frontrunners

relate diagnosis problems to independent energy advice as a starting point. 50% of the frontrunners already use an energy advice according to code of good practice, in view of it’s crucial role in identifying what energy savings measures should be undertaken. Energy advice according to code of good practice also provides the highest customer confidence (35%). After completion of works, energy saving objectives should be completely achieved.

8

Lack of design knowledge with the architect/advisors (83% of respondents) is among the most important problems.

Appropriate activities should thus be integrated to ensure integrated design processes and cooperation between all actors involved in order to provide knowledge increase with the

architect/advisors. Most commonly, handbooks and guidelines are used (75%), training programmes and courses (75%), on-site training or experience (67%) and quality labels and certification schemes (67%). Various actors are experimenting with the systematic use of scrum teams and lean construction processes.

9

The appointment of a project/process manager in charge of overall coordination is a particularly valuable potential solution to ensure on-site coordination, collaboration and

quality control. It is currently still only used by a minority in the Netherlands (33%). At same time a most frequently reported problems by frontrunners is lack of on-site coordination and cooperation (83% of respondents). Control and learning on site and lean construction processes can be a key activity.

10

Appropriate attention should be paid to activities related to hand-over and follow-up during use phase.

A potential activity that can strengthen a business proposition towards customers is the delivery of a user guide with clear maintenance guidelines and instructions (already used by 50% of the frontrunners). Also, maintenance contracts and a project/process manager in charge of overall coordinated are used by 33% of the frontrunners.

3

The knowledge and skills of actors involved (and the quality of products used) should be guaranteed. From

experienced home owners we have seen that 44% do own research about the quality of products. 33% turned to actors having on-site training or expertise, and 27% listened to recommendations by people they know.

Many frontrunners today (51%) already make use of quality

assurance instruments, for example by using handbooks and guidelines (75%), training programmes and courses

(75%), on-site training or experience (67%) or quality labels

and certification schemes for products (58%) as one of the

means to ensure overall quality of the renovation works and to invoke trust and confidence with their current and potential customers.

Some frontrunners today already use instruments to ensure

a collaborative and coordinated renovation process such as

user guides (50%), maintenance contracts (30%) or a project/ process manager in charge of overall coordination (33%).

4

Mechanism that provide high confidence to some

customers are energy advice according to code of good

practice (35%) and an informal common agreement amongst actors to achieve an aspired end result (15%).

5

Human resources as skilled consultants and craftsmen are the most important resource. The majority of Dutch

frontrunners have acknowledged the importance of

energy advice (50%) and third-party endorsement (50%).

11

Partners attracted in the business proposition should have the appropriate knowledge and skills related to nZEB renovation (acquired through handbooks, guidelines, training programs and so on) and should have appropriate previous on-site experience. In particular nZEB

renovation projects require the involvement of skilled and experienced architects and advisors. Lack of knowledge with the architect/advisor was reported by 83% of frontrunners as a problem hindering the quality of nZEB renovation projects. 63% of clients seek information to ensure themselves about the skills of actors involved and claim making sure about this before deciding who to work with. In other words, assurances of skills and knowledge with partners involved – for example assuring to have had on-site training and experience - are also

important in order to attract and convince customers.

12

In general, for all actors involved it should be considered to work with actors that feature

third-party endorsement, with actors that guarantee providing energy advice according to a certain code of good practice or actors that use a quality label/certification for products used on site.

13

A skilled and experienced energy advisor should be involved in the partnership. The starting point

for an nZEB renovation should be a proper energy advice. It is recommended to involve an energy advisor that

works according to an endorsed code of good practice for

nZEB renovation (e.g. according to the Meer met Minder requirements, or actors delivering certificates endorsed by independent institutes, for example PassiefBouwenKeur).

14

Endorsements and listing of the service by

neutral actors are important channels to potential customers. It is therefore important to establish

connections with neutral actors.

Value

Proposition

Resources

Key

Activities

Key

Partners

Key

Hands-on recommendations on quality assurance and customer

confidence for business model development in the Netherlands

Key Partners Key Activities Key Resources Value Proposition Customer Relationship Customer Segments Channels