Sustainable Procurement
Sustainable Procurement
Ahmed Derbas
20249016
A Literature Review submitted for BLDG4010 Construction Research Methods
in partial fulfilment of the requirements for the degree of
Bachelor of Construction Management (Honours)
Supervisor: Swapan SahaSchool of Engineering, Design and Built Environment
Western Sydney University
June 2023
right470535Table of Contents
Chapter 1 Introduction1
Background.....1
Research Problem/Question2
Aim and Objectives.2Scope...4
Work Plan/Timeline....5
Chapter 2 Literature Review...6
Introduction.6
What is Procurement...6What is Sustainable Procurement & Why is it Important7Why is it a Problem in Construction8Issue 1: Limited Availability of Sustainable Resources..9
Issue 2: Cost..10
Issue 3: Resistance to Change...12What are the Objectives of Sustainable Procurement...14Consclusion...18
References.19
0Table of Contents
Chapter 1 Introduction1
Background.....1
Research Problem/Question2
Aim and Objectives.2Scope...4
Work Plan/Timeline....5
Chapter 2 Literature Review...6
Introduction.6
What is Procurement...6What is Sustainable Procurement & Why is it Important7Why is it a Problem in Construction8Issue 1: Limited Availability of Sustainable Resources..9
Issue 2: Cost..10
Issue 3: Resistance to Change...12What are the Objectives of Sustainable Procurement...14Consclusion...18
References.19
Chapter 1: Introduction
BackgroundIn order to ensure that the materials, goods, and services used in building projects are procured in a way that minimises their adverse effects on the environment and society while maximising their positive effects, sustainable procurement is crucial.
With the industry responsible for a sizable amount of global glasshouse gas emissions, resource depletion, and trash generation, construction is a substantial contributor to environmental degradation and socioeconomic inequities. Utilizing ecologically and socially responsible materials and goods can help mitigate these negative effects through the use of sustainable procurement practises. (Sustainable Public Procurement, 2017).
Construction companies can boost their credibility and reputation, gain a competitive advantage, and cut costs over the long term by adopting sustainable procurement practises. These practises also reduce waste, boost efficiency, and lower the risks of non-compliance or unethical sourcing.
In especially in developing nations where building materials are acquired, sustainable procurement fosters the development of local communities and encourages moral and just labour practises. Construction businesses can promote the Sustainable Development Goals of the United Nations, particularly those that pertain to climate action, responsible consumption and production, and decent work and economic growth, by engaging in sustainable procurement. (World Green Building Council, 2023).
Research Problem/ Question(s)
There are a number of obstacles to sustainable procurement in the building industry.
Limited availability of sustainable resources: Access to sustainable materials is one of the main obstacles to sustainable procurement. Construction businesses may find it challenging to obtain sustainable materials because they can be pricey or not readily available in some locations (J.S. Choi & S.E. Kim, 2020).
Limited supplier understanding: Many suppliers might not fully comprehend sustainability or might not be able to meet sustainability criteria. Finding the correct vendors that can deliver sustainable materials and goods may become challenging as a result. (J.S Choi & S.E. Kim, 2020) .Cost: Since sustainable products and materials are frequently more expensive than conventional ones, some building enterprises may find them to be unaffordable. For smaller businesses or those operating on tighter financial resources, this can be particularly difficult.
Absence of standardised criteria: It might be challenging to compare and evaluate sustainable materials and products due to the frequent absence of standardised criteria for sustainable procurement. This might cause confusion and make it difficult for businesses to make informed purchasing decisions. (J.S Choi & S.E. Kim, 2020).
Limited demand: Despite increased knowledge of sustainable procurement, there is still a dearth of demand in the construction sector for sustainable products and materials. This may limit the range of sustainable solutions available and make it harder for suppliers to invest in sustainable production.
Complexity: Purchasing sustainably can be difficult and time-consuming. It necessitates a thorough comprehension of sustainability-related concerns as well as a dedication to finding and choosing sustainable resources and goods. For businesses that may not have the required resources or knowledge, this might be difficult. (J.S Choi & S.E. Kim, 2020).
Aim and Objectives
Here are some particular ways that sustainable procurement can help a building project achieve its goals:
Environmental sustainability: Through the use of sustainable procurement methods, it is possible to guarantee the environmental sustainability of the materials, goods, and services utilised in a building project. Utilizing recycled resources, cutting waste, and lowering the project's carbon footprint are a few examples of how to do this.
Social responsibility: Using sustainable purchasing practises can assist guarantee that project workers are treated properly and that their rights are upheld. This can involve enforcing labour laws and norms, such as paying fair salaries and providing safe working conditions, on suppliers and contractors. (Roadmap to Recovery, 2020).
Economic viability: By encouraging cost-effective practises and minimising waste, sustainable procurement can assist guarantee that the project is fiscally feasible. This can involve maximising resource utilization, utilising energy-efficient materials and technology, and reducing the project's environmental impact.
Stakeholders can accomplish a variety of goals by integrating sustainable procurement practises into a building project, including minimising the project's environmental impact, fostering social responsibility, and guaranteeing economic feasibility. (Roadmap to Recovery, 2020).
Environmental sustainability:
Objectives:
Outline the minimal specifications for sustainable materials, such as the amount of recycled material and the emissions standards.
Motivate vendors to cut back on waste and the carbon footprint of their goods and services.
Encourage the use of energy-saving tools and methods, like solar power and effective HVAC systems.
Social responsibility:
Objectives:
Demand that vendors and contractors adhere to labour laws and standards, such as safety rules and minimum pay requirements.
Promote fair labour practises among suppliers, such as offering secure, healthy working conditions and upholding workers' rights.
Encourage inclusion and diversity in the supply chain by, for example, mandating that suppliers employ a diverse workforce or give back to local communities.
Economic viability:
Objectives:
To cut expenses and waste, maximise the use of resources includingEncourage vendors to provide creative, cost-effective solutions and goods and services that advance sustainability.
Encourage collaboration and transparency throughout the supply chain to find areas where cost-savings and efficiency gains can be made.
By establishing these goals, parties involved in construction projects can endeavour to advance sustainability, social responsibility, and financial viability through sustainable procurement practises.
Scope
It might be difficult to conduct research and discover solutions regarding sustainable procurement in the construction industry for a variety of reasons, such as:
Industry complexity: The construction sector is complicated, encompassing a variety of stakeholders, supply networks, and sustainability concerns. As a result, due to the difficulties in comprehending and visualising this complexity, investigating sustainable procurement in the construction industry can be tough.
Lack of standardisation: Neither standardised measures for assessing sustainable procurement practises nor a generally accepted definition of sustainable procurement exist. Comparing and evaluating sustainable procurement methods used by various projects or organisations may become challenging as a result.
Limited data availability: It may be challenging or impossible for smaller businesses or projects to get data on sustainable procurement practises in the construction industry. This can make it challenging to comprehend the level of sustainable procurement implementation and to pinpoint best practises.
Time and financial limitations: Researching sustainable procurement in the construction industry may be time-consuming and expensive, especially for large-scale projects or organisations. This can make it difficult to compile the information and materials required to carry out a thorough study.
Resistance to change: Due to perceived costs, a lack of knowledge, or other causes, some players in the construction industry may be reluctant to implement sustainable procurement practises. This can make it challenging to identify and promote sustainable procurement practices.
Work Plan/Timeline
Week 6
Submit Assessment 1 Research Topic Report
Attend Progress meetingWeek 7
Attend Progress meetingCommence gathering required/helpful sources/readings for Literature reviewWeek 8
Attend Progress meetingLiterature review Introduction half completion
Week 9
Attend Progress meetingLiterature review, complete Introduction
Week 10
Attend Progress meetingLiterature review, body commencement
Week 11
Attend Progress meetingLiterature review, body completion
Week 12
Attend Progress meetingLiterature review, complete conclusion and edit reportWeek 13
Attend Progress meetingSubmit Assessment 2- Literature Review
Commence and complete Research Design Proposal
Week 14
Submit Assessment 3- Research Design Proposal
Chapter 2: Literature Review
2.1 Introduction
This Literature Review is about the selected topic, Sustainable Procurement. This review is to display the importance of sustainable procurement in construction and why it will benefit all within the industry. This review aims to increase awareness of the issues & gaps surrounding the chosen topic in an aim to increase its use through out not only construction but also other industries as well.
The scope of this review spans from what procurement is to the main objectives to close out the issue and everything in between, including, why it is so important, why it is a problem in the constrction industry, the 3 main issues surrounding sustainable procurement and its objectives as portrayed in the table of contents above. The three main issues include, limited availabilityof sustainable resources, cost, limited demand & resistance to change. The criteria used in the selection of the topic for this literature review is due to the simple fact that, to rase awareness to its global neglection due to the issues it bring forth despite the many benefits it can output upon its adoption.
What is ProcurementThe act of procuring involves obtaining products, services, or labour from outside suppliers in order to satisfy an organization's demands. It requires a number of actions, such as requirement identification, supplier sourcing, contract negotiation, and vendor relationship management. The purpose of procurement is to make sure that the company gets the resources it needs at the appropriate time, in the right amount, and for the right price.
In the past, procurement was frequently seen to be a merely transactional job with a cost-cutting objective. It has changed into a strategic discipline that seeks to add value for the organisation, nonetheless, in recent years. Professionals in procurement are now essential in fostering innovation, controlling risks, and boosting the organization's overall competitiveness (H. et al., 2022) .Rather than writing one paragraph for each piece of research being discussed, literature reviews are usually organised so that each paragraph/section covers one theme or sub-topic.
Procurement procedures have been significantly impacted by technology. Data analytics, automation, and the usage of digital platforms have completely changed how procurement is done. Processes have been streamlined, transparency has been increased, and real-time supplier communication is now possible thanks to e-procurement platforms. Additionally, the introduction of supplier networks and internet marketplaces has broadened the range of choices available to procurement experts (Dominick & Lunney, 2022).
Furthermore, ethical and sustainable factors have taken centre stage in the buying process. Organisations are looking for suppliers who uphold moral principles, encourage environmental responsibility, and support charitable causes. Green procurement practises, which attempt to reduce the environmental impact of the procurement process, have been developed as a result of the focus on sustainability.
2.3 What is Sustainable Procurement & Why is it so ImportantWhen making purchases, sustainable procurement involves taking into account environmental, social, and ethical considerations (Berry, 2011). It is significant because it connects organisational aims to more general sustainability goals. Organisations can support social responsibility, economic growth, and environmental protection by emphasising sustainable practises.
Sustainable buying encourages green behaviours like lowering carbon emissions, preserving resources, and cutting back on waste. Additionally, it helps vendors who adhere to moral standards and fair labour laws, making a good social impact.
Using sustainable buying methods has a number of advantages. It develops stakeholder connections, improves brand reputation, and reduces reputational risks brought on by unethical or unsustainable supply chain practises. Additionally, by supporting the creation of sustainable goods and services, sustainable procurement promotes innovation (Berry, 2011).
Through increased resource efficiency, decreased waste, and decreased energy use, sustainable buying can also lead to cost savings (Berry, 2011). It aids businesses in achieving sustainability objectives and displaying their dedication to social and environmental responsibility.
In conclusion, sustainable procurement is essential for businesses to support a future that is more sustainable. It guarantees ethical sourcing, lessens environmental effect, encourages moral behaviour, and provides reputational and monetary advantages.
2.4 Why is Sustainable Procurement a Problem in Construction
Construction-related businesses confront particular difficulties with sustainable procurement. Making sure sustainability practises are used throughout building projects is challenging due to the complicated supply chain that involves numerous suppliers and subcontractors. The issues are exacerbated by the industry's lack of knowledge and training about sustainable procurement (Addis & Talbot, 2001). The environmental and social effects of their procurement choices and the sustainable alternatives available may not be completely understood by construction professionals. The adoption of sustainable materials and practises might be hampered by the cost considerations in construction projects, where up-front expenses frequently take precedence. Because of the industry's fragmentation and the involvement of several stakeholders, initiatives to promote sustainable procurement need to be effectively coordinated and aligned. Complying with ever-changing norms and laws pertaining to sustainable construction also makes things more difficult (Qudrat-Ullah, 2018). However, because of environmental worries, customer demands, and legal obligations, sustainable procurement is becoming more significant in the construction sector. Collaboration throughout the sector, increased awareness and education, and the adoption of sustainability frameworks and standards to direct procurement decisions are all necessary to address these difficulties.
2.5 Issue 1: Limited Availability of sustainable resources
The construction sector has a sizable difficulty due to the scarcity of sustainable resources. Numerous resources are needed for construction projects, including building supplies, energy, and water. Due to its reliance on conventional materials and methods, the construction industry has the potential to have a substantial negative impact on the environment, including increasing carbon emissions, the depletion of natural resources, and increased pollution and waste (Kibert, 2022).
Materials and resources that have been sourced, produced, and used in building with consideration for the environment are known as sustainable resources. These tools reduce harmful environmental effects, encourage resource efficiency, and uphold the sustainability and circular economy tenets.
The lack of sustainable resources in the building sector is due to a number of factors:
Lack of Supply Chain Integration: There is a lack of integration throughout the construction supply chain. This can make it difficult to efficiently obtain, distribute, and use sustainable resources throughout the construction process (Kruger & Seville, 2013). The availability of sustainable resources is hampered by the lack of coordination among stakeholders, including suppliers, manufacturers, and contractors.
Limited Market Demand: When compared to traditional materials, sustainable resources are frequently in lower demand in the construction industry. Various obstacles, such as greater costs, a lack of knowledge about or comprehension of sustainable solutions, and conventional procurement practises that prioritised cost and time considerations, can contribute to this limited market demand (Goodhew, 2016).
Technology-related Barriers: There may be limits to the development and production of sustainable resources. For instance, it could be necessary to use specialised tools, procedures, or knowledge that are not currently broadly accessible or economically viable to produce some sustainable materials or technologies (KUBBA, 2019).
Regulation and Certification Requirements: Certain sustainable resources could have certain regulations and certification standards that must be satisfied, which might complicate and increase the expense of obtaining them (KUBBA, 2019). Resource providers may encounter difficulties adhering to environmental regulations, certifications, and labelling programmes, especially if the construction sector has not generally adopted or acknowledged them.
The limited supply of sustainable resources in the building industry calls for coordinated action from diverse stakeholders (Kruger & Seville, 2013).. This include raising public awareness and providing information about sustainable alternatives, encouraging the creation and use of sustainable resources, incorporating sustainability standards into the procurement process, and encouraging cooperation among supply chain participants (Goodhew, 2016).. The availability and use of sustainable resources in construction are encouraged by laws, rules, incentives, and standards that are set by governments, industry associations, and professional organisations.
2.6 Issue 2: Cost
Due to a number of factors, cost is frequently a key barrier to sustainable procurement in the construction industry.
Higher Upfront Costs: Compared to their conventional counterparts, sustainable materials and products typically have higher upfront costs (Tucker, 2022). For instance, the initial cost of energy-efficient equipment or environmentally friendly building materials may be higher. Adopting sustainable procurement practises may be hampered by these higher prices, particularly for building projects with limited funds or clients who are price-conscious.
Restricted Market Demand and Economies of Scale: The building sector may incur greater expenses due to the restricted market demand for sustainable materials and products. In comparison to conventional alternatives, the development and supply of sustainable resources frequently take place on a smaller scale. Because there is less demand, economies of scale are reduced, raising the cost of sustainable choices (SRINATH, 2018). Market demand growth may improve economies of scale, which eventually results in lower costs.
Lack of Availability and Accessibility: In some markets or regions, sustainable products and materials may not be readily available. Since obtaining sustainable resources may necessitate additional logistics, shipping, or importation costs, a weak supply chain for these resources might result in higher costs (Goodhew, 2016). In addition to longer lead times and consequent delays in construction projects, the limited availability can also result in higher costs.
Additional Certification and Compliance Costs: Complying with specific certification, standard, and compliance criteria is frequently necessary for sustainable buying. These requirements could come with extra expenses including certification fees, paperwork, and audits (Tucker, 2022). It may cost more to comply with sustainability standards and to ensure compliance than it would in a typical procurement scenario.
Lack of Cost-Benefit Awareness: In some circumstances, it's possible that decision-makers are unaware of all the long-term advantages and cost savings connected to sustainable procurement (SRINATH, 2018). Even though sustainable materials and goods may cost more up front, they frequently have benefits including energy efficiency, durability, need for less upkeep, and cost savings over the course of their lifespan. The emphasis on initial prices alone, however, can prevent the adoption of sustainable procurement practises if the cost benefits are not well explained and comprehended.
A comprehensive strategy that takes into account the full lifecycle costs and benefits of sustainable materials and products is needed to address cost challenges in sustainable buying. Cost-related obstacles can be overcome by initiatives like raising awareness of long-term cost savings, creating creative funding solutions, and encouraging stakeholder participation (Tucker, 2022). By offering financial incentives, tax rebates, or subsidies to offset the initial increased costs, governments, industry associations, and organisations can play a significant role in encouraging the use of sustainable procurement practises.
It is crucial to remember that even while sustainable procurement may have greater up-front expenses, it can result in advantages including enhanced reputation, better environmental performance, and long-term cost savings (Goodhew, 2016). In order to make informed procurement decisions that balance sustainability and financial considerations in the construction industry, a thorough examination of costs and benefits is required.
2.7 Issue 3: Resistance to Change
When it comes to the implementation of sustainable procurement practises in the construction industry, resistance to change is a major problem. An explanation of why resistance to change is harmful is provided below:
Traditional Attitudes and Methods: Historically, the construction sector has depended on traditional procurement methods that put an emphasis on project completion as soon as possible at whatever cost (Kibert, 2016). Due to familiarity, comfort, and worries about the possible disruption to current workflows and relationships, many stakeholders, including clients, contractors, and suppliers, may be reluctant to change these established practises.
Lack of Awareness and Understanding: Lack of knowledge and understanding of the advantages of sustainable procurement might contribute to resistance to change. The benefits that sustainable practises can have on the environment, society, and the economy might not be fully understood by all stakeholders (Kibert, 2016). Without understanding the long-term advantages and potential competitive advantages, they may view sustainability as an additional responsibility or cost.
Perceived Cost Implications: The belief that sustainable procurement is more expensive than traditional techniques is a major obstacle to adoption (Senaratne & Sexton, 2011). Despite the potential for long-term cost savings through less energy usage, higher operational efficiency, and enhanced reputation, stakeholders may be averse to change due to worries about increasing upfront expenditures.
Risk aversion: Change frequently brings about perceived hazards and uncertainty. Due to uncertainties over the effectiveness, dependability, and compatibility of sustainable materials, technologies, and construction techniques, stakeholders may be hesitant to implement sustainable procurement practises (Dykstra, 2016). They can worry about potential project delays, higher maintenance needs, or a shortage of specialised knowledge related to sustainable procurement.
Lack of Incentives: Failure to provide enough incentives for companies to embrace sustainable procurement methods may cause resistance to change. Stakeholders are less inclined to devote time, energy, and money to enacting changes if they do not perceive clear advantages or rewards for embracing sustainability (Wilkinson et al., 2014). By encouraging stakeholders to adopt sustainable practises, incentives such as laws, cash rewards, tax exemptions, or recognition programmes can help overcome resistance.
Organisational culture and internal dynamics may have an impact on a person's readiness to change. Within construction firms, deeply rooted beliefs, attitudes, and behaviours may give rise to resistance (Dykstra, 2016). In some instances, the implementation of sustainable procurement practises might be hampered by a lack of leadership support or opposition from important people inside organisations.
Several strategies are needed to overcome opposition to change in sustainable procurement:
Education and communication: It is crucial to increase public awareness of and comprehension of the advantages of sustainable procurement through focused educational and communication initiatives (Wilkinson et al., 2014). Sustainable practises can assist overcome opposition and encourage buy-in from stakeholders by demonstrating the positive effects, cost savings, and competitive advantages they offer.
Engagement of Stakeholders: Including stakeholders in the development of sustainable procurement strategies early in the decision-making process can foster ownership and lessen resistance (Dykstra, 2016). Stakeholders may recognise the value in change by developing chances for open discussion, sharing success stories, and resolving concerns.
Education and communication: It is crucial to increase public awareness of and comprehension of the advantages of sustainable procurement through focused educational and communication initiatives. Sustainable practises can assist overcome opposition and encourage buy-in from stakeholders by demonstrating the positive effects, cost savings, and competitive advantages they offer.
Engagement of Stakeholders: Including stakeholders in the development of sustainable procurement strategies early in the decision-making process can foster ownership and lessen resistance (Leffers, 2010). Stakeholders may recognise the value in change by developing chances for open discussion, sharing success stories, and resolving concerns.
Networks for cooperation and learning: The exchange of information and experiences can be facilitated through building learning networks, encouraging stakeholder engagement, and disseminating best practises (Leffers, 2010). Stakeholders can learn from one another and develop confidence in implementing sustainable procurement practises by providing channels for discussing accomplishments, challenges, and lessons learned.
A multifaceted strategy that takes into account cultural, educational, socioeconomic, and organisational factors is necessary to overcome resistance to change. By fostering a supportive environment and dispersing knowledge and assistance.
2.8 What are the Objectives of Sustainable Procurement
Environmental Sustainability
Due to its major implications for tackling urgent global concerns, environmental sustainability is a key goal of sustainable procurement in the building industry. A significant amount of glasshouse gas emissions and resource consumption are caused by the construction industry. Construction projects can significantly contribute to reducing their carbon footprint and mitigating climate change by prioritising environmental sustainability in their procurement practises (Chinyio & Olomolaiye, 2010). To reduce energy use, this entails promoting energy-efficient materials, technologies, and systems and incorporating renewable energy options.
It is well known that the building sector uses a lot of natural resources. By promoting the use of recycled materials, resource-efficient design, and reducing waste output, sustainable procurement aims to safeguard natural resources. Construction projects can lessen resource extraction, conserve water, protect biodiversity, and minimise habitat devastation by implementing sustainable procurement practises. This helps to protect ecosystems, increase the long-term availability of resources, and keep natural systems in balance.
The emphasis on waste management is another facet of environmental sustainability in sustainable procurement. Waste from construction projects, such as packing materials and construction debris, is produced in large quantities (Dykstra, 2016). Sustainable procurement supports the concepts of a circular economy, encourages the use of products with less packaging, and fosters the recycling and reuse of building debris. Resource conservation, environmental protection, and landfill waste reduction are all benefits of effective waste management.
Sustainable construction procurement strives to improve the resilience and adaptation of structures and infrastructure in addition to reducing climate change and safeguarding resources. Sustainable procurement encourages the use of resilient materials, sustainable design concepts, and climate-responsive technology in response to the escalating frequency and severity of extreme weather events as well as other climate-related concerns (Dykstra, 2016). This increases their longevity and lessens the need for costly changes in the future by ensuring that buildings and infrastructure can withstand and adapt to the effects of climate change.
Furthermore, environmental sustainability has become a regulatory requirement in many jurisdictions. Sustainable procurement practices help construction projects comply with environmental regulations, ensuring that they operate within legal frameworks and adhere to established standards (Chinyio & Olomolaiye, 2010). Additionally, stakeholders such as clients, investors, and the wider community increasingly expect construction projects to prioritize sustainability. By aligning with stakeholder expectations, sustainable procurement enhances the reputation and market competitiveness of construction projects.
Social Responsibility
Given the considerable influence that sustainable procurement has on communities, workers, and society at large, social responsibility is a key goal of the construction industry. The following succinct justification for why social responsibility is a major emphasis:
The desire to have a good social impact is one of the main reasons social responsibility is given priority in sustainable procurement. Construction projects can have a significant impact on a neighborhood's employment prospects, economic growth, and general quality of life (Chinyio & Olomolaiye, 2010). Construction projects seek to maximise positive social outcomes and reduce negative effects by integrating social responsibility into procurement practises.
Throughout the supply chain, workers must be treated fairly and ethically as part of social responsibility in sustainable buying. It includes making sure that there are secure working conditions, reasonable pay, and protection for workers' rights (Dykstra, 2016). Construction projects can improve labour practises and employees' wellbeing by working with suppliers and contractors who place a priority on social responsibility, which includes lowering the risk of exploitation and supporting just and equitable employment possibilities.
Fostering diversity, equity, and inclusion within the construction sector is another facet of social responsibility in sustainable procurement. For underrepresented groups like women, ethnic communities, and underprivileged people, this entails encouraging equitable opportunity (Chinyio & Olomolaiye, 2010). Construction projects can create a more inclusive industry, encouraging economic empowerment, and advancing social fairness by actively seeking out varied suppliers and contractors.
Community involvement and stakeholder involvement are important components of sustainable procurement. Local communities may experience substantial effects from construction projects, such as changes to the physical environment, noise, dust, and traffic disruptions (Dykstra, 2016). Construction projects can foster trust, uphold wholesome relationships, and respond to the needs and goals of the community by interacting with residents, hearing their concerns, and taking their opinion into consideration.
Social responsibility in sustainable buying also includes supply chain management and ethical sourcing. It entails taking into account the social effects connected to the gathering and processing of raw materials, including problems like child labour, forced labour, and environmental degradation (Chinyio & Olomolaiye, 2010). Construction projects can make sure that their operations do not hurt society by procuring materials from vendors who uphold ethical standards and encouraging openness in the supply chain.
Economic Viability
In order to ensure that sustainability practises are not seen as an additional financial burden, economic viability is a key goal of sustainable procurement in the construction industry. Sustainable procurement, on the other hand, attempts to provide value and guarantee that initiatives are commercially viable (Dykstra, 2016). Construction projects can find cost-effective solutions that optimise resource use, enhance operational efficiency, and lower life-cycle costs by integrating sustainable concerns into procurement practises.
The use of resources, technologies, and systems that are not only ethically and socially responsible but also economically viable is prioritised by sustainable procurement practises. This entails evaluating elements including life-cycle costs, upkeep requirements, energy efficiency, and robustness (Bueren, 2012). Construction projects can produce long-term financial savings and greater profitability by making decisions based on economic viability.
Furthermore, innovative thinking and the creation of fresh sustainable technology and solutions are encouraged by sustainable procurement (Dykstra, 2016). Construction projects promote innovation by fostering competition among suppliers and contractors, which results in the development of more affordable and sustainable goods and services. As a result, the market for sustainable solutions is stimulated, increasing their economic viability and opening them up to more initiatives.
Another facet of economic viability in sustainable procurement is taking into account the wider economic advantages. For instance, sustainable structures are frequently more energy-efficient, leading to lower energy bills for tenants and lower operating expenses over the course of the structure's life (Bueren, 2012). Sustainable purchasing encourages the development of productive and healthy indoor settings, which has a favourable effect on the productivity and well-being of occupants.
In addition, construction projects benefit from sustainable procurement in terms of reputation and market positioning. Sustainability is given top priority by many customers, investors, and stakeholders who view it as a symbol of quality and ethical business practises (Bueren, 2012). Construction projects can draw in clients and investors who are environmentally sensitive by incorporating sustainability into procurement choices, expanding the market, increasing project values, and enhancing brand perception.
2.9 Conclusion
In order to adequately represent the literature review, a variety of sources, including government reports, books,scholarly journals, are used in this literature study. The topic of sustainable procurement is highlighted in various topical areas by significant elements of the corpus of literature now in existence.The gaps and issues mentioned that included, limited availability of sustainable resources, cost and resistance to change were spoken about in depth and also what the objectives of sustainable procurement are to reach if these gaps were closed out.
2.10 ReferencesSustainable Public Procurement: A global review | UNEP - UN environment ... (2017). Available at: https://www.unep.org/resources/report/sustainable-public-procurement-global-review (Accessed: April 8, 2023).
Home (2023) World Green Building Council. Available at: https://worldgbc.org/ (Accessed: April 8, 2023).
Sustainable Procurement in the Construction Industry" by J. S. Choi and S. E. Kim, Sustainability 2020, 12(4), 1574; doi:10.3390/su12041574 (Accessed April 9, 2023)
New guidance on sustainable procurement: ISO 20400 (no date) New Guidance on Sustainable Procurement: ISO 20400 | Green Building Council of Australia. Available at: https://new.gbca.org.au/news/gbca-news/new-guidance-sustainable-procurement-iso-20400/ (Accessed: April 9, 2023).
Roadmap to recovery - construction leadership council (2020). Available at: https://www.constructionleadershipcouncil.co.uk/wp-content/uploads/2020/06/CLC-Roadmap-to-Recovery-01.06.20.pdf (Accessed: April 10, 2023).
H., B.P.J. et al. (2022) Procurement principles and management: A global approach to adding value and transformation. Harlow, England: Pearson (Accessed; 20/5/23).
Dominick, C. and Lunney, S.R. (2022) The Procurement Game Plan: Winning Strategies and techniques for Supply Management Professionals. Plantation, FL: J. Ross Publishing (Accessed: 20/5/23).
Procurement for Sustainable Development: A view from multilateral development banks (2015) Public Procurement Policy, pp. 190216. doi:10.4324/9781315686356-22 (Accessed 22/5/23).
Berry, C. (2011) The Sustainable Procurement Guide [Preprint]. doi:10.3403/9780580698613 (Accessed 22/5/23).
Addis, B. and Talbot, R. (2001) Sustainable Construction Procurement: A guide to delivering environmentally responsible projects. London: CIRIA (Accessed 23/5/23).
Qudrat-Ullah, H. (2018) Innovative Solutions for sustainable supply chains. Cham: Springer International Publishing (Accessed 23/5/23).
Kibert, C.J. (2022) Sustainable construction: Green building design and delivery. Hoboken, NJ: John Wiley & Sons, Inc (Accessed 25/5/23).
Kruger, A. and Seville, C. (2013) Green building: Principles and practices in residential construction. Clifton Park, NY: Delmar Cengage Learning (Accessed 25/5/23).
Goodhew, S. (2016) Sustainable Construction Processes: A resource text. Chichester, UK: John Wiley & Sons (Accessed 25/5/23).
KUBBA, S. (2019) Green Construction Project Management and cost oversight. BUTTERWORTH-HEINEMANN INC (Accessed 26/5/23).
Tucker, L.M. (2022) Sustainable Building Systems and construction for designers. New York: Fairchild Books (Accessed 28/5/23).
SRINATH, A.A.P. (2018) Cost studies of buildings. ROUTLEDGE (Accessed 28/5/23).
Senaratne, S. and Sexton, M. (2011) Managing change in construction projects: A knowledge-based approach. Chichester, West Sussex, UK: Wiley Blackwell (Accessed 30/5/23).
Dykstra, A. (2016) Green construction an introduction to a changing industry. Santa Rosa: Kirshner Publishing Company (Accessed 30/5/23).
Wilkinson, S., Remy, H.T. and Langston, C.A. (2014) Sustainable building adaptation: Innovations in decision-making. Chichester, West Sussex: John Wiley & Sons (Accessed 30/5/23).
Leffers, M.R. (2010) Sustainable Construction and design. Upper Saddle River, NJ: Pearson Education/Prentice Hall (Accessed 30/5/23).
Chinyio, E. and Olomolaiye, P.O. (2010) Construction stakeholder management. Chichester, West Sussex, U.K.: Blackwell (Accessed 31/5/23).
Bueren, E. van (2012) Sustainable Urban Environments: An ecosystem approach. Dordrecht Netherlands: Springer (Accessed 31/5/23).
