The construction sector is one of the most resource-intensive industries. Stricter environmental regulations, dwindling primary resources, labor shortages, and rising construction costs are posing challenges for the sector. At the same time, demand for affordable housing and modern infrastructure is growing. There is no alternative: construction must become more efficient.
The good news is that construction can already be more efficient today. Innovative green technologies are available, and the circular economy is opening up new markets. A bright new world, then? Not quite yet.
The transformation of the construction industry has begun, but the pace of change resembles the notoriously delayed construction of Berlin Brandenburg Airport. This is not solely the fault of the companies in the industry. Policymakers also need to ensure the right conditions are in place. However, if the responsibility is continually passed back and forth between business and politics, progress stalls. From both an economic and environmental perspective, such a standstill must be avoided at all costs.
Challenges in Using Secondary Raw Materials
Let’s focus on what companies can achieve on their own. A powerful lever is the recycling of construction waste as part of the circular economy. In Germany, mineral waste is the largest waste category by volume – an enormous 218.8 million tons in 2018. Over 80% of this is already being reused. [1]
However, the majority is used to fill excavation sites or for landfill construction. Only 13% of construction and demolition waste is actually recycled and reintroduced as construction materials. [2] This means that demand for primary raw materials remains high.
The reasons for this inefficient practice are multifaceted. Previous regulations hindered rather than promoted the use of secondary raw materials. The Secondary Construction Materials Ordinance (Ersatzbaustoffverordnung), which came into force in August 2023 as part of the “Mantelverordnung,” aimed to counteract this trend and significantly increase the acceptance of secondary building materials. However, initial results have been disappointing.
A survey conducted by four construction and recycling associations among their members revealed that nearly a year after its introduction, the ordinance’s goals have not been achieved. Only 5% of the 156 companies surveyed reported an increase in the recycling of demolition debris and excavation material. Meanwhile, 52% saw no change, and 42% reported a decrease in material being prepared for reuse. [3]
Many companies hesitate to use secondary construction materials because these are often still classified as “waste” rather than recognized as construction products, which also deters public clients. Despite their comparable quality to primary construction materials, uncertainties surrounding the implementation of the ordinance and the high administrative burden hinder their use. These challenges lead to a continued preference for primary materials.
Construction Companies Should Not Be Deterred
While the current version of the Secondary Construction Materials Ordinance has not yet delivered on its promises, secondary construction materials deserve more attention. A study by the German Construction Materials Federation (Bundesverband Baustoffe – Steine und Erden e.V.) estimates that the production of recycled construction materials will increase by around 5% to 17% by 2040. [4]
With primary resources and landfill space becoming scarcer, rising cost pressures on construction site waste management can be expected.
Furthermore, the European Union’s Circular Economy Action Plan is discussing stricter recycling targets for the construction industry. Companies involved in the production, installation, and recycling of secondary construction materials should prepare for new requirements and expand their expertise.
Legal Certainty in Using Secondary Construction Materials
The regulations outlined in the Mantelverordnung are extensive and, as is typical for legal texts, sometimes difficult to understand. For example, anyone wanting to use secondary construction materials in a technical structure must find the appropriate row-column combination from 27 application tables. This is a time-consuming task in the hectic construction industry.
Digital solutions such as the BODEN CHECK App provide relief. This app was developed to give companies legal certainty when recycling mineral demolition and excavation waste or using secondary construction materials in technical structures.
The app includes a data-compliant AI chatbot that provides legally vetted answers to questions about the Secondary Construction Materials Ordinance. It quickly informs users about permissible uses of mineral construction waste and assists in creating necessary forms and fulfilling extensive documentation requirements.
![Grafik_SDC_circular_Pfade_en[1]](https://circulaze.com/wp-content/uploads/2025/01/Grafik_SDC_circular_Pfade_en1.png)
More Transparency for Efficient Material Flow Management
For construction waste that cannot be reused on-site, companies typically need to find buyers quickly. The simplest, but often most expensive, solution in the past was to transport it to a landfill. To ensure that potential secondary construction materials are reused on other construction sites, an overview of supply and demand is needed, along with pragmatic software solutions like the SITE DEPOT Community – a free construction network that promotes the circular economy.
In the community, material offers and requests can be posted free of charge. This creates visibility about where and when secondary raw materials are available and needed. It encourages local reuse, reducing transportation costs and CO₂ emissions. To determine the most economically and ecologically sensible options for disposal and supply, providers of primary construction materials, recycling, and waste management services are also included in the community.
To keep participation barriers low, the service supports direct transactions between providers and buyers without third-party interference.
In addition to private-sector users, the browser-based software is also relevant for municipalities, enabling them to promote digitalization and the circular economy in their regions without investment. For this reason, the Baden-Württemberg State Agency for the Environment (Landesanstalt für Umwelt Baden-Württemberg) and the Bavarian State Office for the Environment (Bayerische Landesamt für Umwelt) recommend the service. SITE DEPOT Community is also used fort he reconstruction of the Ahrtalbeing used as part of reconstruction efforts in the Ahr Valley, which was severely damaged by a flood disaster in 2021.
No Circular Economy Without Networking
The SITE DEPOT Community is a scaled-down version of the award-winning material flow management software SITE DEPOT, whose users include renowned construction companies.
By enabling cross-platform publication of supply and demand, the community fosters networking among stakeholders in the construction industry: material suppliers, construction and demolition companies, recycling and waste management companies, developers, housing associations, and municipalities.
Conclusion: Digitalization as a Catalyst for the Circular Economy
The construction industry is undergoing a sustainable transformation, which cannot succeed without intelligent material flow management. Software solutions like the BODEN CHECK App and the SITE DEPOT Community offer tools to turn waste into resources, reduce costs, and protect the environment.
By creating transparency without compromising the data and pricing sovereignty of stakeholders, these digital tools make a crucial contribution to the circular economy – and to a more sustainable future for the construction sector.
The Author:

Sources:
[1] 12th Monitoring Report on the Construction Industry
[2] Deutschlandfunk Kultur
[3] ZDB Joint Press Release
[4] Study by the German Construction Materials Federation, 2022 Update