Discussion: Widening engineering horizons: Addressing the complexity of sustainable development

The following discussion is from an Institution of Civil Engineers (ICE) prestige lecture based on the original paper and delivered by the authors at the ICE in London on 24 September 2008.1 The event was chaired by Engineering Sustainability editorial panel chair, Professor Chris Rogers from Birmingham University. It was attended by an audience of 130 people as well as being watched by a similar number over a live web-cast. The web-cast can be accessed from the ICE archive for online viewing at http://scenta. interwise.com/etechb/ OnDemand/TH6509.

Opt-out options in new product co-development partnerships

We study three contractual arrangements—co-development, licensing, and co-development with opt-out options—for the joint development of new products between a small and financially constrained innovator firm and a large technology company, as in the case of a biotech innovator and a major pharma company. We formulate our arguments in the context of a two-stage model, characterized by technical risk and stochastically changing cost and revenue projections. The model captures the main disadvantages of traditional co-development and licensing arrangements: in co-development the small firm runs a risk of running out of capital as future costs rise, while licensing for milestone and royalty (M&R) payments, which eliminates the latter risk, introduces inefficiency, as profitable projects might be abandoned. Counter to intuition we show that the biotech's payoff in a licensing contract is not monotonically increasing in the M&R terms. We also show that an option clause in a co-development contract that gives the small firm the right but not the obligation to opt out of co-development and into a pre-agreed licensing arrangement avoids the problems associated with fully committed co-development or licensing: the probability that the small firm will run out of capital is greatly reduced or completely eliminated and profitable projects are never abandoned.

The load-bearing duct: Biomimicry in structural design

The philosophical aspects of applying the principles of biomimicry are explored in a case study of structural design. Integrating structural engineering with services engineering can be regarded, to some extent, as taking principles from biological systems and applying them to large-scale conceptual design. The end-product discussed herein a so-called load-bearing duct, a functional naturally ventilated multi-storey office building that takes the applied loading efficiently both structurally and cost-effectively giving it the potential to be sustainable throughout its design life.

Risk-based approaches to sustainability in civil engineering

Infrastructure project sustainability assessment typically entails the use of specialised assessment tools to measure and rate project performance against a set of criteria. This paper looks beyond the prevailing approaches to sustainability assessments and explores sustainability principles in terms of project risks and opportunities. Taking a risk management approach to applying sustainability concepts to projects has the potential to reconceptualise decision structures for sustainability from bespoke assessments to becoming a standard part of the project decisionmaking process. By integrating issues of sustainability into project risk management for project planning, design and construction, sustainability is considered within a more traditional business and engineering language. Currently, there is no widely practised approach for objectively considering the environmental and social context of projects alongside the more traditional project risk assessments of time, cost and quality. A risk-based approach would not solve all the issues associated with existing sustainability assessments but it would place sustainability concerns alongside other key risks and opportunities, integrating sustainability with other project decisions.

Mired in the meaning: Sustainability in consultancy

This paper explores sustainability as it relates to the services, operations and management of engineering and design (E&D) consulting firms, revealing how sustainability has been adopted by the engineering consulting industry as a key influence on its business. The motivations behind sustainability as a business priority for E&D consulting do not appear to reflect a corporate belief or endorsement of sustainability principles, but rather a reflection of market, employee and government drivers. Through interview-based reporting, the implications of these motivations are the focus of this paper through an exploration of the meaning, understanding and operationalising of sustainability in engineering design, assessment of design and in-firm management and strategy.