Framework for Sustainable Procurement - Identifying Elements for Construction Works

2020 ◽  
Vol 897 ◽  
pp. 245-249
Author(s):  
Reini Wirahadikusumah ◽  
Muhamad Abduh ◽  
Yunita Messah
Keyword(s):  
Construction Industry ◽  
Environmental Performance ◽  
Public Procurement ◽  
Government Agency ◽  
Public Works ◽  
Sustainable Construction ◽  
Sustainable Procurement ◽  
The Government ◽  
Depth Interviews ◽  
Construction Works

Sustainable procurement has been considered an opportunity for improving the environmental performance of the construction industry. The development of sustainable procurement in Indonesia is still in its initial phase. Therefore, a framework is needed to establish an outlook to explore the enablers and barriers for promoting sustainable procurement in the construction industry. In the formulation of the framework, the first step is to identify the important elements. The approach was explorative-descriptive. Based on ISO 20400, as the guidelines for sustainable procurement, and literature on sustainable procurement for construction works, a list of elements was gathered. In-depth interviews were conducted to identify the most significant elements for the Indonesian construction public procurement context. Respondents included procurement experts from the government agency, (i.e., the National Public Procurement Agency and the Ministry of Public Works and Housing), academics, and procurement specialists who are the members of the Indonesian Procurement Professionals Association. Results suggest that all elements contained in ISO 20400 are relevant with the kinds of literature on construction works; also, Indonesian respondents agreed with all the identified elements ranging from “important” to “very important.” This finding will be subsequently used to further understand the complex cause-effect relationships among the important elements in developing the framework for sustainable construction public procurement.

Price and quality: relationship between bid rate and construction performance rating ranking

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Koki Arai
Keyword(s):  
Panel Data ◽  
Public Procurement ◽  
Order Term ◽  
Public Works ◽  
Performance Rating ◽  
Content Type ◽  
The Government ◽  
The Relationship ◽  
Construction Works

PurposeThe purpose of this paper is to try to understand the relationship between price and quality in public procurement by using data on the quality of civil engineering works and prices in tenders. By doing so, it tries to conduct a comprehensive examination of the quality of construction works, which has been difficult to recognize and evaluate.Design/methodology/approachThe methodology of this analysis is to collect data on the quality of construction works from the rankings of construction performance evaluations revealed by public procurement authorities. In addition, the prices of bids of the providers in public procurement are also collected from the available data and analyzed. The relationship between the two was statistically analyzed in an objective and verifiable way.FindingsWhat the study found was that the price of the work measured by the bid rate had a positive and significant relationship with the quality of the work measured by the construction performance rating. Furthermore, the panel data were analyzed using panel data for 51 firms that all appeared in the construction performance evaluation for 12 years and participated in at least three bids in each year, and the first-order term of the bid rate was negative and the second-order term was positive and was 10% significant, which is a U-shaped relationship.Research limitations/implicationsThis study is one of the investigations focused on public procurement construction work. One of the limitations of this study is that it is a study of one industry in the Asian region. However, this study focuses on the incentives of business operators. As such, the analysis is applicable to all situations faced by those running businesses.Practical implicationsThe managerial implications of this study include the following: although, improving the quality of construction results is costly, competitive firms are also steadily improving their quality as it is a factor of competition. However, there will come a point where their efforts come to a halt at a certain level. It is necessary to operate the business with this situation in mind. In addition to the company's efforts, it is necessary to lobby the government.Social implicationsAs a policy implication for this analysis, it was possible to evaluate that steady improvement in construction results was confirmed, but the correlation between the relaxation of the competition and the increase in the bid rate was correlated with the decrease in the total amount of public works. This highlights the problem of having to think about measures for the efficient use of the. In addition to this, the fact that the competition situation has been eased can be considered as a problem that it will adversely affect the innovation stimulation of operators, and that it will become necessary to pay more attention to competition limiting acts.Originality/valueThe uniqueness of this paper is firstly that unique data representing the quality of public procurement, which had been difficult to analyze, were collected, organized and used in the study. In addition, not only did we find a positive relationship between quality and price but we also found a U-shaped relationship between them using panel data.

scholarly journals Study of Social and Environmental Needs for the Selection of Sustainable Criteria in the Procurement of Public Works

2020 ◽  
Vol 12 (18) ◽  
pp. 7756 ◽  
Author(s):  
Laura Montalbán-Domingo ◽  
Madeleine Aguilar-Morocho ◽  
Tatiana García-Segura ◽  
Eugenio Pellicer
Keyword(s):  
European Union ◽  
Construction Industry ◽  
Environmental Performance ◽  
Public Procurement ◽  
European Union Country ◽  
Public Works ◽  
Social Categories ◽  
Promethee Method ◽  
High Level ◽  
Level Of Importance

Fostering sustainability in the construction industry has been claimed; however, important barriers are hindering its implementation in public procurement. The main reason is the lack of knowledge about what sustainability criteria should be included and the high level of subjectivity in the definition of their level of importance. Both aspects should be addressed depending on the specific context of each country. Therefore, the aim of this research focused on identifying the sustainability shortcomings that exist in each European Union country in order to determine the level of importance of each sustainability category. Five environmental categories and eight social categories were established, and, to assess the sustainability performance of the 28 European countries, 42 national indicators were selected and the Promethee method was undertaken to rank the countries. Finally, through a cluster analysis, two groups of countries were identified. The first group consisted of the most economically developed European Union countries. These countries need to focus mainly on the environmental performance. However, the second group needs to make an effort in social sustainability at the same time, which controls their environmental performance. This research provides guidance on the decision-making with regard to the inclusion of sustainability in public procurement of the construction industry.

scholarly journals An Application of Analytic Hierarchy Process (AHP) for Sustainable Procurement of Construction Equipment: Multicriteria-Based Decision Framework for Malaysia

2019 ◽  
Vol 2019 ◽  
pp. 1-20 ◽  
Author(s):  
Muhammad Waris ◽  
Shrikant Panigrahi ◽  
Abdullah Mengal ◽  
Mujeeb Iqbal Soomro ◽  
Nayyar Hussain Mirjat ◽  
...  
Keyword(s):  
Construction Industry ◽  
Life Cycle Cost ◽  
Construction Projects ◽  
Sustainable Construction ◽  
Construction Equipment ◽  
P System ◽  
Bottom Line ◽  
Sustainable Procurement ◽  
Selection Framework ◽  
Hierarchy Process

Sustainable procurement is an emerging theme in the construction industry across the globe. However, organizations in the construction industry often encounter impediments in improving environmental performance in construction projects, especially in procurement. Besides its other facets, procurement of construction equipment is inherited to be capital-intensive and vital for managing environmental concerns associated with built environment projects. In this regard, selection criteria in such procurement processes are generally supportive of considering cost and engineering specifications as key parameters. However, sustainability apprehensions in today’s Malaysian construction industry have mounted pressure on industry professionals to rethink their equipment acquisition strategies. The notion of green or sustainable procurement is still infancy for the Malaysian construction industry and facing challenges for embedding it in the current procurement practices. This research aims to address these apprehensions by considering six main criteria, namely, life cycle cost (LCC), performance (P), system capability (SC), operational convenience (OC), environmental impact (EI), and social benefits (SBs), and their 38 subcriteria towards procurement of sustainable construction equipment. A multicriteria-based equipment selection framework on the triple bottom line of sustainability in the context of the Malaysian construction industry has been developed and tested. The application of analytical hierarchy process (AHP) established the sustainable procurement index with a consistent sensitivity analysis results. As such, the proposed procurement index shall help decision-makers in the process of the acquisition of sustainable construction equipment in Malaysia.

scholarly journals The status quo and perspective for improvement of public works procurement performance in Vietnam

2014 ◽  
Vol 6 (1) ◽  
pp. 22 ◽  
Author(s):  
Hai Luong Nguyen ◽  
Tsunemi Watanabe
Keyword(s):  
Construction Industry ◽  
Construction Projects ◽  
High Performance ◽  
Public Procurement ◽  
Poor Performance ◽  
Vital Role ◽  
Public Works ◽  
The Public ◽  
The Status ◽  
Questionnaire Surveys

The public procurement sector plays a vital role in the economic development in developing countries such as Vietnam. However, public procurement activities usually perform poorly. This situation can be attributed to ineffective procedures and system (“hardware”) and human resource management (“software”), which occurs at every stage in project purchasing. The poor performance has reduced the effectiveness and efficiency of project delivery in the construction industry, causing delays, cost over-runs, and defects in construction projects. This paper, through working experience and observation by the first author, problems of public procurement were obtained as hypotheses and then validated based on questionnaire surveys and CIS (Construction Industry Structure) model analysis. The survey results indicated a relative correlation with CIS model in description of current construction industry. The study aims to identify issues of public procurement at all stages: pre bid, bid information, evaluation, and award. Based on identified major problems and determined risks, the results are expected to provide a valuable perspective, and thus, to propose necessary strategies to deliver high performance, competition and transparency for the public procurement. In further studies, it is relevant to propose a new model for sustainable public procurement based on the best value approach.

Green Procurement in Construction: Analysis of the Readiness Level and Key Catalyst among Construction Enablers

2021 ◽  
Vol 12 (1) ◽  
Author(s):  
Nurazri Razali ◽  
◽  
Natasha Khalil ◽  
Asmah Alia Mohamad Bohari ◽  
Husrul Nizam Husin ◽  
...  
Keyword(s):  
Construction Industry ◽  
Construction Projects ◽  
Government Support ◽  
Sustainable Construction ◽  
Kuala Lumpur ◽  
Implementation Framework ◽  
Green Procurement ◽  
Readiness Level ◽  
The Government ◽  
Valley Area

In the concern of sustainability and increasing awareness of environmental degradation, the Malaysian government has promoted numerous initiatives on green growth and green procurement (GP) to maintain and minimize the ecological effects in construction. However, this initiative is still in the infancy stage as to date, there is no specific guideline delineated to the construction industry, and it has yet to be enforced by the government to the construction practitioners. In construction, green procurement is a new area, and immediate actions are needed upon the principles, guidelines, and policy and implementation framework. Hence, this research aims to analyse the readiness level, barriers, and key catalysts among construction enablers towards adopting green procurement in the construction industry. Questionnaires were distributed to 102 construction enablers, focusing on quantity surveying firms in the Klang Valley area (Kuala Lumpur and Selangor), and 87 returned the responses. The analysis uses descriptive statistics via mean score, and the standard deviation was used to measure the variables and the mean's dispersion. It is revealed that the consultants are ready to adopt green procurement. However, GP's implementation's top challenges are lack of internal expertise, low awareness about green procurement, and lack of established best practices, standardized procedures and guidelines. It can be summarized that promoting GP and its implementation requires government support in policies, initiatives, and incentives. As the current practice is fragmented, ideally, GP's adoption in construction projects needs to conform to the acceptable standards that enable specific provisions to acquire eco-friendly sustainable construction.

A Review on Sustainable Construction Regulations in Asian Countries: Savvy Insights for Indonesia

2021 ◽  
Vol 19 (2) ◽  
pp. 459-464
Author(s):  
Maria Agnes ◽  
Raldi Hendro Koestoer
Keyword(s):  
Construction Industry ◽  
Implementation Process ◽  
Public Works ◽  
Sustainable Construction ◽  
Water Volume ◽  
Infrastructure Projects ◽  
Asian Countries ◽  
The Republic ◽  
Construction Operation ◽  
Laws And Regulations

Infrastructure projects, more specifically the construction, operation and deconstruction phase, are claimed to have the potential to cause profound impacts on the environment. The construction industry worldwide attains to generate the consumption for 40% of total energy production and 16% of the entire sum of water volume available, as well as the production for 25% of greenhouse gas emissions and 30-40% of all solid wastes. This circumstance has led to the rising of global awareness with regards to the importance of sustainability concept implementation in the construction industry which subsequently resulted in the formulation of corresponding laws and regulations in recent years. Indonesia is no exception. Decree of the Minister of Public Works and Public Housing of the Republic of Indonesia No: 05/PRT/M/2015 concerning General Guidelines for the Implementation of Sustainable Construction in Infrastructure Projects Execution has been enacted to provide a direction for sustainable construction implementation that creates sustainable infrastructure, which will eventually contribute to a sustainable development. Based upon the decree, this study conducts a literature review on the implementation process of laws and regulations related to sustainable construction in Asian countries. The review contains exploratory case studies and comparative analysis on general overview of the regulations format and the challenges encountered, as well as strategies taken, during the implementation process. This paper provides a useful reference for policy makers in Indonesia, while simultaneously benefits the construction industry practitioners and other related stakeholders.  ABSTRAKPenyelenggaraan infrastruktur, khususnya pada tahapan pelaksanaan konstruksi, pemanfaatan dan pembongkaran, memberikan dampak negatif yang cukup signifikan terhadap lingkungan. Sektor industri konstruksi tercatat berkontribusi atas penggunaan 40% total produksi energi di dunia, 16% total jumlah konsumsi air, 25% emisi gas Rumah Kaca (GRK), serta 30–40% dari volume limbah padat dunia. Kondisi ini telah disadari oleh negara-negara di dunia, termasuk Indonesia, sehingga ditindaklanjuti dengan diterbitkannya regulasi-regulasi sehubungan dengan konstruksi berkelanjutan. Peraturan Menteri Pekerjaan Umum dan Perumahan Rakyat Republik Indonesia (Permen PUPR) Nomor: 05/PRT/M/2015 tentang Pedoman Umum Implementasi Konstruksi Berkelanjutan Pada Penyelenggaraan Infrastruktur Bidang Pekerjaan Umum dan Permukiman telah diterbitkan untuk dapat dijadikan acuan bagi para penyelenggara infrastruktur dalam mengimplementasikan pendekatan konstruksi berkelanjutan di Indonesia. Mengacu kepada Permen tersebut, penelitian ini melakukan studi komparasi berdasarkan kajian literatur terhadap proses implementasi regulasi konstruksi berkelanjutan di beberapa negara Asia lainnya dengan tujuan tidak hanya untuk mengetahui format regulasinya namun juga tantangan-tantangan yang dihadapi dan strategi-strategi yang diambil dalam proses implementasinya. Hasil dari penelitian ini diharapkan dapat digunakan sebagai bahan pertimbangan penentuan kebijakan lanjutan sehubungan penyelenggaraan infrastruktur berkelanjutan di Indonesia.

scholarly journals Paving the Road for Sustainable Construction in Developing Countries: A Study of the Jordanian Construction Industry

2013 ◽  
Vol 1 (1) ◽  
pp. 84 ◽  
Author(s):  
Suhair Alkilani ◽  
Julie Jupp
Keyword(s):  
Performance Measurement ◽  
Construction Industry ◽  
Government Regulation ◽  
Developing Economies ◽  
Secondary Data ◽  
Sustainable Construction ◽  
The Road ◽  
Sustainable Procurement

There is an increasing pressure on governments of developing economies to support sustainable construction procurement. In exploring this issue, this research asks three related questions: (1) how is sustainable procurement perceived in developing economies, (2) how can government regulation influence its application, and (3) what is the role of performance measurement in stimulating sustainable procurement practices? Answers are sought via an investigation exploring the underlying issues and challenges facing the construction industry of a developing country looking to address sustainable procurement. Using primary and secondary data sources, this research presents a case study of the Jordanian construction industry. Findings show that whilst sustainable procurement practices are promoted, it is still in its infancy - in part due to ineffective procurement frameworks and a lack of performance measurement. Current government regulations and policies are identified as an underlying cause, discouraging the development and adoption of sustainable procurement methods. As the Jordanian construction industry shares characteristics with other developing economies, it is expected that the findings of this paper will be of interest to professionals in those construction industries attempting to initiate sustainable procurement via performance measurement.

scholarly journals Framework Development Methodology for Sustainable Procurement of Construction Works in Indonesia

2018 ◽  
Vol 203 ◽  
pp. 02014 ◽  
Author(s):  
Muhamad Abduh ◽  
Reini D. Wirahadikusumah ◽  
Yunita Messah
Keyword(s):  
Sustainable Development ◽  
Construction Projects ◽  
Sustainable Construction ◽  
Construction Sector ◽  
Development Methodology ◽  
Sustainable Procurement ◽  
Procurement System ◽  
Framework Development ◽  
Construction Works

To implement sustainable development in construction sector, or called as sustainable construction, Indonesian still face challenges that requires massive research and developments related to that issue. One of the most important practices in sustainable construction is adoption of sustainable principle in procurement processes or called sustainable procurement. This paper will discuss a methodology formulation that is designed to develop a framework for implementing sustainable procurement in construction projects. The framework will consist of important factors driving the sustainable procurement system and their relationships to effectively produce the outputs of procurement processes that meets sustainable principles.

scholarly journals Implementing Sustainable Construction Principles and Practices by Key Stakeholders

2016 ◽  
Author(s):  
Nnamdi Maduka ◽  
David Greenwood ◽  
Allan Osborne ◽  
Chika Udeaja
Keyword(s):  
Construction Industry ◽  
Construction Projects ◽  
Quantitative Research ◽  
Sustainable Construction ◽  
Online Questionnaire ◽  
Greenhouse Gas Reduction ◽  
Key Stakeholders ◽  
The Government ◽  
The Uk ◽  
Industry Needs

The term äóÖsustainable constructionäó» is used to highlight the responsibility of the construction industry in attaining sustainable development (SD). With the increasing necessity for resource efficiency and climate change adaptation, there is a need for construction key stakeholders to implement sustainable principles and practices in construction projects. In the UK context, engaging in such action will facilitate the government target of 80% greenhouse gas reduction by 2050 and also be a potential source of competitive advantage in the future. The aim of this study is to examine how the industry values and promotes sustainable principles and practices in construction projects. A quantitative research method was adopted in order to reach a wider audience in the industry. An online questionnaire survey was used to collect data. The key finding from the survey is that the level of construction industry promotion of sustainable principles and practices is less than it should be. The outcome of the survey suggests that the industry needs to strategise on how to champion and promote the implementation of sustainable principles and practices at a greater level if the industry is to contribute to the global quest for SD.

scholarly journals Analysis of Compensation for Delay and Settlement of Disputes Clauses in CPWD Contract Guidelines

2021 ◽  
Author(s):  
Neethu Elsa Anil ◽  
Reshma Kassim ◽  
Sinu Philip Varghese
Keyword(s):  
Construction Industry ◽  
Delay Time ◽  
Public Works ◽  
Contract Management ◽  
Project Risks ◽  
Settlement Of Disputes ◽  
Construction Works ◽  
General Conditions

The construction industry is an industry where multiple parties are involved in the completion of a project. Risks in the construction industry include both threats to and opportunities in a project. The majority of construction works in India are modeled on General Conditions of Contract (GCC) formulated by the Central Public Works Department (CPWD). Public Works Contracts have many limitations and are prone to disputes. This paper analyses clause 2, 5, and 25 of CPWD GCC 2020. They are clauses on compensation for the delay, time and extension for the delay, and settlement of disputes and arbitration. This paper aims to study the remedy for delay and disruption according to clauses in CPWD GCC and to make recommendations for optimal and effective contract management from the data collected through the survey. A questionnaire is prepared on these 3 clauses and the responses are analyzed and recommendations are made based on the responses collected.

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