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Construction Supply Chains and Their Role in Sustainability

Construction Supply Chains
and Their Role in
Priyanka Erasmus
and Usha Iyer-Raniga
School of Property, Construction and Project
Management, RMIT University, Melbourne, VIC,
Co-lead Sustainable Buildings and Construction
Programme, United Nations One Planet Network,
Paris, France
Case study;Goods;Procurement;Services;Sup-
ply chain;Value for Money (VfM)
There are no accepted denitions in the literature
for construction supply chain. Construction sup-
ply chains essentially bring goods and materials to
the construction site to ensure a building and
construction project may be realized. It may also
include services required such as that of various
trades needed to complete a project. The various
stakeholders involved in the success of a construc-
tion project such as the owner or client, the archi-
tect, various types of engineers, and operators all
are involved in the success of the project and
therefore, they are also part of the supply chain.
Introduction and the Sustainable
Development Goals (SDG)
The sustainable development goals (SDGs) were
adopted by the United Nations member states in
2015 to end poverty, protect the planet, and ensure
that all people enjoy peace and prosperity by
2030. The 17 goals are interrelated so that action
in one area will affect outcomes in others. Devel-
opment must balance social, economic, and envi-
ronmental sustainability (UNDP 2020).
The building and construction sector
accounted for the largest share of both global
nal energy use of 36% and energy-related CO
emissions of 39% in 2018 (UNEP and IEA 2017).
Since the adoption of the SDGs and the 2030
Agenda, construction companies have tried to
nd sustainable ways for delivering construction
projects. According to the WGBC (2020), sustain-
able green buildings can contribute toward the
sustainable development goals (SDGs) 3, 7, 8, 9,
11, 12, 13, 15, and 17. SDG 3 focuses on health
and well-being, SDG 7 focuses on energy use,
SDDG 8 on decent work and economic growth,
SDG 9 on industry and infrastructure, SDG 11 on
sustainable cities and communities, SDG 12 on
responsible consumption and production, SDG
13 on climate change, SDG 15 on biodiversity,
© Springer Nature Switzerland AG 2021
W. Leal Filho et al. (eds.), Industry, Innovation and Infrastructure, Encyclopedia of the UN Sustainable Development
and SDG 17 on collaboration and partnerships
(UNDP 2020).
Thus, green buildings can support and assist in
achieving outcomes in relation to these goals:
Improve peoples health and well-being
Use renewable energy particularly in operating
buildings, becoming cheaper to run
Create jobs in construction and operation of
buildings, thus boosting the economy
Spur innovation in the sector and contribute to
climate resilient infrastructure
Support the essence of and form the fabric of
sustainable communities and cities
Use circularprinciples where resources are
not wasted
Produce fewer emissions helping to combat
climate change
Improve biodiversity, save water resources,
and help to protect forests
Create strong, global partnerships (WGBC
It is important to note that triple bottom line
(TBL) plays a key role in helping the construction
industry achieve not only economic but social and
environmental success by diversifying work and
practices (Elkington 1998). To achieve this, the
construction industry must look at work and prac-
tices that are sustainable in terms of extraction,
transportation, processing, fabrication, installa-
tion, reuse, recycling, and disposal of these mate-
rials. As pressures continue to arrest the negative
impacts of environmental damage, the disposal of
materials themselves is presenting an opportunity
for deconstruction (rather than disposal to landll
or worse, in the local environment) and bringing
materials back into the supply chain using the
principles of a circular economy. A circular
approach reduces if not eliminates the need for
virgin materials to be extracted causing greater
environmental damage, compared to reuse and
reprocessing materials already existing in the sys-
tem, supporting a second life.
Therefore, SDG 9 is directly related to an
important component of the construction supply
chain. SDG 9 focuses on building of resilient
infrastructure, promotion of inclusive and sustain-
able industrialization, and fostering innovation.
Aligned with SDG 9, SDG 12 on responsible
consumption and production is also an important
consideration for a circular economy and the pos-
sibilities of setting up new supply chains in the
This entry commences with the denition of
construction supply chain (CSC) and determines
whether CSC plays an important role in sustain-
ability within the construction sector using case
studies. As construction projects usually involve a
lot of money, the value for money for a building
and construction project needs to be considered.
So, a comparative analysis of the Value for Money
(VfM) framework is undertaken to determine if
this can assist in achieving sustainability in the
delivery of construction projects. Using case stud-
ies, success factors for construction projects are
highlighted. The entry concludes with determin-
ing the way forward for construction supply
Construction Supply Chain (CSC)
Stevens (1989)denes supply chain as a
connected series of activities which is concerned
with planning, coordinating, and controlling
material, parts, and nished goods from suppliers
to the customer and is concerned with the two
distinct ows through the organization: material
and information. The scope of the supply chain
begins with the source and ends at the point of
consumption. Christopher (1992) considered the
supply chain as a network of organizations that
are involved, through upstream and downstream
linkages, in the different processes and activities
that produce value in the form of products and
services in the hands of the ultimate customer.
Behm (2008) states construction work typi-
cally involves building of new structure, renova-
tions involving additions, alterations, or
maintenance and repair of buildings or engineer-
ing projects such as highways or utility systems.
According to Muya et al. (1999), there are three
types of construction supply chains:
2 Construction Supply Chains and Their Role in Sustainability
The rst of these is the primary supply chain
which delivers materials that get incorporated
into the nal construction product
The second one is the support chain which
provides equipment and materials that facili-
tate construction
The third type of supply chain involves the
supply of labor
Therefore, the nature of construction supply
chains (CSC) is complex and there is no one
singular approach. CSC involves a high degree
of collaboration among stakeholders such as cli-
ents, consultants, contractors, subcontractors,
laborers, suppliers, and a range of other stake-
holders. The denition of construction must not
be confused with that of manufacturing which
typically refers to the production of nished
goods sold to distributors, retailers, or consumers.
Construction involves the architecture, engineer-
ing, construction, and operation (AECO) actors to
come together to produce a building or
Vrijhoef and Koskela (2000) characterize the
construction supply chain into three categories
(p. 171):
Converging supply chain: This type of supply
chain, called a converging supply chain, directs
all materials to the construction site where the
object is assembled from the incoming mate-
rials. The construction factoryis set around
the single product, in contrast to manufacturing
systems where multiple products pass through
the factory and are distributed to many
Temporary supply chain: A temporary supply
chain produces one-off construction projects
through repeated conguration of project orga-
nizations. This is the most commonly occur-
ring type of supply chain. As a result, the
construction supply chain is typied by insta-
bility, fragmentation, and especially by the
separation between the design and the con-
struction of the built object.
Make-to-order supply chain: As the name sug-
gests, this type of supply chain is typically
make-to-order supply, with every project cre-
ating a new product or prototype. There is little
repetition, again with minor exceptions. The
process can be very similar, however, for pro-
jects of a particular kind such as prefabrication.
The characteristics of the construction supply
chain are considered next.
Characteristics of Construction
Supply Chain
There are certain characteristics of a construction
supply chain. Behera et al. (2015) list the charac-
teristics of CSC as follows:
(a) Customer inuence: A customer exercises
great inuence on the nal product in relation
to its physical aspects and to the value of
logistic parameters.
(b) Fragmentation: Construction industries are
very complex as many subcontractors and
vendors are involved and active group of
institutions that operate to meet numerous
different and incompatible business purposes.
(c) Number and type of stakeholders: The main
stakeholders are owners, designers, construc-
tors, and suppliers; however, a typical net-
work involves multiple organizations and
relationships, including the ow of informa-
tion, the ow of materials, services and prod-
ucts, and the ow of funds between client,
designer, contractor, and supplier.
(d) Buyersupplier relationship: This is mostly of
transactional nature, strained by conict and
mistrust. Moreover, it is widely known, espe-
cially among public sector clients, that in con-
struction, a tender price is the most signicant
parameter used for a bid evaluation. This
focus on price is the main reason for project
delivery problems.
(e) Temporary multiple organizations (project-
based nature): Production at a temporary site
by a temporary organization leads to relation-
ships focused on the short-term thinking, with
actors attempting to leverage what they can
Construction Supply Chains and Their Role in Sustainability 3
out of the existing contract, resulting in an
environment where opportunism reigns.
(f) Change inertia: Construction organizations
tend to be conservative referring to the need
for change, because of the risks associated
with the procurement of projects.
(g) Make-to-order supply chain: Clients are often
seen as the ultimate source of changes in
specications in make-to-order production. It
is the client who takes the initiative to start a
construction project, and this leads to frequent
conceptualization of the CSC as a process
explicitly starting and ending with the
end user.
(h) Collaborative opportunities: To model
interorganizational innovation in construc-
tion, there is a need for exploration of collab-
orative opportunities.
(i) Cyclical demand: The construction industry is
highly cyclical in output because its product is
not transportable but durable.
These characteristics make CSC a web of com-
plexities and pose many challenges for the suc-
cessful completion of a project. These involve
time, price, coordination, and collaboration
between key project players and project-specic
Behera et al. (2015) outline these complexities
as follows:
Construction projects run a strict schedule
involving large capital investments and stringent
quality standards, and time is of the essence and a
critical factor as far as completion of a project is
concerned. Delays in project completion result in
legal consequences and further delays.
Behera et al. (2015) state that all pricing in
construction can be lump sum, cost plus, negoti-
ated or unit price and depends on the time that the
contractor determines it will take to complete a
job. The labour-intensive construction operation
is characterised by decentralisation. A main con-
tractor may self-perform a portion of the work as
other specialty subcontractors move in and out of
the project as and when they complete sections of
their work(p. 7).
Behera et al. (2015) also argue that there is
little coordination and collaboration between the
design professionals, main contractors, sub-
contractors and suppliers involved during the life
cycle of the project. Information generated by
various sources, at many levels of abstraction
and detail, contributes to the fragmentation,
which eventually results in lack of communica-
tion and implementation and leads to signicant
negative performance impacts low productivity,
cost and time overruns, change orders, inadequate
design specications, liability claims, and, gener-
ally, conicts and disputes which directly impact
the customer by increasing project completion
time and costs(p. 7).
Lastly, Behera et al. (2015) found that the
ultimate level of complexity involved with the
management of a construction project is to be
determined by the extensive requirements of the
end customer and found it difcult to quantify the
exact number of constituent material, equipment
and labour supply chains that have to be inte-
grated into a typical construction project due to
its unique project-specic requirements(p. 7).
A classic example of the complexities within
construction projects is the current Victorian gov-
ernmentsagship AUD11 bn infrastructure pro-
ject, the Melbourne Metro rail tunnel project in
Victoria, Australia. This mega project clearly
demonstrates the complexities in completing a
construction project.
While there are general characteristics of con-
struction supply chains, there are country-specic
characteristics that are unique to their construction
industry. Ho et al. (2007) characterize the supplier
selection criteria in Taiwan and Vietnam into six
groups; capability, ability to meet buyers needs,
honesty and integrity, price, buyersupplier t,
and strategic commitment of supplier to buyer
(pp. 408409). Amornsawadwatana (2011)
asserts that in Thailand, important factors for a
successful construction supply chain include solid
partnerships between the suppliers and the pro-
ject, suppliers must be able to monitor the day-to-
day construction progress as well as levels of
materials inventory and calculate materials
required for the next period, third-party logistics
providers should also be included; delay in trans-
portation generates extra costs to the project since
construction process has to wait for materials
4 Construction Supply Chains and Their Role in Sustainability
while laborers are idle and successful partnership
with all members in the supply chain requires the
electronic data interchange (EDI) system (p. 207).
For construction projects to be successful, a
range of critical success factors (CSF) are essen-
tial. Sanvido et al. (1992)dene CSFs as those
factors predicting success on projects(p. 97).
According to Milosevic and Patanakul
(2005)critical success factors are characteristics,
conditions, or variables that can have a signicant
impact on the success of the project when properly
sustained, maintained, or managed(p. 64). From
various literature identied through Milosevic and
Patanakuls(2005) study, critical success factors
include support from senior management, skilled
designers, skilled project managers, troubleshoot-
ing, project team motivation, commitment of all
project participants, strong/detailed plan effort in
design and construction, adequate communication
channels, effective control such as monitoring and
updating plans, effective feedback and adequate
nancial budget(p. 65).
Case Studies
There are several examples of construction pro-
jects that are a success. Two examples are pre-
sented here, one from England and the other from
The Eden project in Cornwall, England, is a
good example and its success can be seen by
number of visitors, local regeneration, and deliv-
ery on budget and being completed ahead of
schedule (Connaughton et al. 2006).
Connaughton et al. (2006) identied factors that
exemplify all the principles that underpin effec-
tive project management and delivery as
Purpose the vision and objective of the pro-
ject remained constant throughout the project.
Appraisal the basic concept was tested using
various options and design and was based on
realistic assessments of visitor numbers and
income projections.
Precedent since the scheme had no direct
precedent in terms of business proposition or
design and construction, the result was a sig-
nicant effort focused on active risk
management to reduce uncertainty associated
with the project. Later phases of the project
seemed to have beneted from lessons learned
through staff continuity and formal knowledge
Management strong visionary leadership
backed up by a clear project management
structure was a key to the projects success.
Important issues like stakeholder management
were addressed in the project
management plan.
People the project team became highly inte-
grated and were wholly focused on resolving
the technical challenges represented by the
project and on its successful delivery.
Procurement the project was procured using
the New Engineering Contract (NEC) form
based on guaranteed maximum price and com-
pensation events were linked to the risk register
that provided complete clarity regarding allo-
cation of risk exposure.
Design quality the project has a commitment
to innovation, quality, and sustainability
including the efcient use of materials and
Cost management budgets were realistic and
market-tested, therefore delivering on the pro-
ject efciently. The scope of the project was
reduced at an early stage without disruptions to
the project if the funds were insufcient. With
GMP (guaranteed maximum price) and active
risk management strategy in place, it enabled
the contingency to be retained through the
Communications close-control project man-
agement kept the team informed of progress
and actions required to meet targets which
included a close-knit, colocated team with a
decisive hands-on client.
Risk management the formal risk manage-
ment processes registered were regularly
updated and integrated into the contract. This
ensured the ownership of risks was clear and
that actions were taken to mitigate potential
risk exposure.
Construction Supply Chains and Their Role in Sustainability 5
People are at the heart of a successful project
and are the most important component in deter-
mining its success. It is the dynamics between
people and how well they work together that
often determines the success of a project.
From a traditional construction approach, the
project also had some notable sustainability consid-
erations. The Eden project sourced materials
responsibly, supporting some of the SDGs. The
project utilized Heineken beer bottles as green
tiles in the oor, the entrance mats are made from
recycled truck tyres, and the cafe oor is made of
reclaimed wood. The project worked closely with
Rio Tinto to source the copper for the roof of the
core and this marked a new approach in the mineral
supply chain that pioneered single-source traceabil-
ity. The project also used glulam (glue-laminated
layers of timber) from Forest Stewardship Council
certied red spruce to create the beams in the ceiling
of the core (Eden Project n.d.). The walls of the
dome are super-insulated by using Warmcel made
from recycled newspaper (Eden Project n.d.). The
design features of the lobby reduce heat loss at the
front door and underground tubes warm the air
before it enters the building (Eden Project n.d.).
Photovaltaic panels were used to provide a fraction
of the electricity used in the building. Automatic
taps were used to save water. The project chose to
use Portland cement because the producers were
committed to the ongoing reduction of CO
in the
manufacturing process and because the cement
could be delivered by rail (Eden Project n.d.).
They sourced a recycled aggregate to make up the
remaining 90% of the concrete (only 10% is
cement). The aggregate used was local China clay
industry waste (Eden Project n.d.).
Another example is the Southbank Education
and Training Precinct, which was Queenslands
(Australia) rst PPP (public private partnership)
and was delivered under the Queensland govern-
ments PPP policy and Value for Money frame-
work for AUD 542 million (net present value,
June 2005 dollars). The project included 11 new
buildings and refurbishment of four buildings
resulting in a 2990 m
of student accommodation
and serviced apartments (DIT 2010). Under the
PPP contract, Axiom Education Queensland
(ABN AMRO, John Holland and Spotless
Facilities Management) designed, constructed,
and nanced the project. The project was judged
as the Best Global Projectat the prestigious
Public Private Finance Awards in London on
22 May 2007 (DIT 2010). Successes of the project
include a completion time 7 weeks ahead of
Summary of the key project insights included
governance and management that promoted
accountability and responsibility throughout the
decision-making structure, the interactiveten-
dering process with the private sector reducing the
risk of the private sector misinterpreting project
scope or output specications, maintaining strong
relations and communications with Axion to
ensure that issues were resolved in a timely man-
ner, undertaking a review of the Value for Money
framework following its rst PPP project, making
improvements to the policy and the evaluation,
and contract nalization processes were
conducted in accordance with the Queensland
Governments PPP policy (DIT 2010).
Value for Money (VfM)
Value for Money framework (VfM) is a method of
procurement used in private public partnerships
(PPP) for large complex projects. According to
MacDonald et al. (2013), the VfM framework
model is designed to be of use to all parties
involved in the delivery of project alliances,
including owners, constructors, design consul-
tants and other non-owner participants (NOPs),
and it is intended to inform all participants mutu-
ally of the issues that are critical to VfM through-
out the whole lifecycle of a project(p. 281).
The link between value and project success is
important in assessing the criteria of success in the
delivery of the project. For example, MacDonald
et al. (2013) state that a project may be delivered
successfully but may not create signicant value
to justify the resources being deployed to deliver
it(p. 281). This is where a VfM plays an impor-
tant role. However, there is a lack of literature on
the denition of a Value for Money framework in
the construction industry. MacDonald et al.
(2013)nd the general lack of consistency in the
6 Construction Supply Chains and Their Role in Sustainability
denition of VfM in the literature striking
(p. 281). Cited in Ameyaw et al. (2015),
Rintamaki et al. (2007) in their contribution
towards the debate of value suggest that value
has to do with economic issues (relating to
price), function (connected to functional require-
ments), emotion (showing experiential needs),
and symbolism (showing self-expression needs)
(p. 270). The VfM framework model is designed
to be of use to all parties involved in the delivery
of project alliances, including owners, construc-
tors, design consultants and other non-owner par-
ticipants (NOPs), and it is intended to inform all
participants mutually of the issues that are critical
to VfM throughout the whole lifecycle of a pro-
ject(MacDonald et al. 2013, p. 281).
Table 1shows a comparison of the VfM model
in selected countries. A mix of developed and
developing countries have been chosen to show
differences and similarities that drive the VfM,
which in turn drives the supply chains. The table
starts by looking into key assessment criteria of
VfM assessment for selected countries and con-
ducts a comparison of the variables, namely
assessment, appraisal, drivers, barriers, and con-
cepts. The VfM key assessment criteria form the
basis for the comparisons and consist of afford-
ability, risk sharing, and competition. As some of
the terms such as affordability and risk sharing are
subjective, they need attention. According to
Takim et al. (2009), affordability means the
appropriate allocation of resources, cost distribu-
tion and within the budget, risk sharing is referred
to the optimum allocation of risk between private
and public sectors and competition means
contestability in the market (i.e., in the building
process and once the contract is concluded and in
operation)(p. 106).
Conclusion and the Way Forward
The construction supply chain (CSC) plays an
important role in ensuring sustainable
construction practices support the SDGs in
achieving sustainability and addressing climate
change. However, various considerations need to
be reconciled. The rst of this is the project budget
itself common to building and construction pro-
jects. To consider sustainability underpinnings in
projects, the full cycle cost needs to be considered.
It is not unusual to have a higher project cost up
front but more modest operating costs when con-
sidering the life of a project. Along with the bud-
get are other considerations such as procurement
and the social considerations of procurement,
especially where global supply chains are
involved as it is hard to determine some of the
social impacts such as child labor in a different
Therefore, companies need to make an ethical
choice as far as procurement is concerned. This is
where the VfM is most useful. The framework
assists companies to procure affordable resources
for construction projects but may not necessarily
take in to account the SDGs and sustainability. As
can be observed from the Eden project case study,
it was completed 6 months in advance. These
success criteria may be replicated in other con-
struction projects. Construction companies can
utilize such practices within their own projects to
implement the SDGs and enhance the sustainabil-
ity agenda. Supply chains are the backbone of
construction projects. If success criteria are
dened and agreed to in advance and all stake-
holders commit to work in collaboration to meet
the goals of the project, the outcomes benet
everyone. When considering the future, tradi-
tional supply chains that use virgin materials are
increasingly being questioned due to the environ-
mental impact associated with the production of
the building materials and products. New supply
chains, where materials and products already in
the system can be given a second life and become
raw materials for remanufacture of new products
and materials, are currently being explored in
some parts of the world.
Construction Supply Chains and Their Role in Sustainability 7
Construction Supply Chains and Their Role in Sustainability, Table 1 Comparison of the VfM for selected
countries (Source: Authors)
UK VfM Model
(Grimsey and
Lewis 2005;
Pitt and Collins
VfM Model
VfM Model
(Mori 2006;
Kajita 2007)
Vietnamese VfM
Model (Atmo and
Dufeld 2014;
Hang 2016;La
Ghanian VfM Model
(Ameyaw et al. 2015)
Key assessment
Affordability Affordability Affordability Transferred risk
Qualitative and
Risk sharing Risk sharing Risk sharing Endogenous
Use of Public Sector
Comparator (PSC),
though this is
sometimes described
Competition Competition Competition Exogenous
Risks assessment
Public Sector
Public Sector
Public Sector
Interest Test
Full cost-benet
Assessing the cost of
service delivery to the
Comparing private
Conrming the
viability of the
chosen project
Financial (net
present value)
(net present
Financial (net
Financial Qualitative (literature
(merit based)
(merit based)
(merit based)
Barriers Subjective Inaccuracy Complexity
of procedures
High risk relying
on the private
Design change
Simplistic Omitted risks Bureaucracy Few schemes
have actually
reached the
contract stage
Conditions imposed
by the higher
authorities for
approval of the
Unquantiable Manipulation Not
Movement of
construction costs
Risk High cost Lack of a
High project costs Change in
Incomplete No consesus
on discount
A great deal of
management time
spent on contract
Change in PPP
(public private
8 Construction Supply Chains and Their Role in Sustainability
Construction Supply Chains and Their Role in Sustainability, Table 1 (continued)
UK VfM Model
(Grimsey and
Lewis 2005;
Pitt and Collins
VfM Model
VfM Model
(Mori 2006;
Kajita 2007)
Vietnamese VfM
Model (Atmo and
Dufeld 2014;
Hang 2016;La
Ghanian VfM Model
(Ameyaw et al. 2015)
No public
restrictions on
Change client
Lengthy delays in
Frequent changes in
clients requirements
Policy change
Change in FM
VFM drivers Risk allocation Denable
Risk allocation
Whole life
and opening
market to
private sector
Risk transfer Competition
Competition Integration of
Private sector
and expertise
Competition Output specication
duration and
Contract duration and
Bid cost Risk transfer Private
willing to
accept risk
Innovation Performance
Innovation Greater asset
Capacity of
asset utilisation
Contract exibility
Borrowing cost Market
Private sector
skills utilisation
Building cost
Private and
Technical innovation
Client mngt skill
Government support
Stable macro
economic condition
Shorten process &
keep to timelines
Favourable legal
Construction Supply Chains and Their Role in Sustainability 9
Addressing local and global sustainability in
the age of sustainable development goals
Assessment of Resilience in Complex Urban
Climate Change Adaptation: Infrastructure and
Extreme Weather
Construction Supply Chains and Their Role in
Corporate Social Responsibility and Sustain-
able Development Goal 9
Cradle-to-Cradle Front-End Innovation: Man-
agement of the Design Process
Development of New Skills: Innovation and
Sustainability in Industry 4.0
Construction Supply Chains and Their Role in Sustainability, Table 1 (continued)
UK VfM Model
(Grimsey and
Lewis 2005;
Pitt and Collins
VfM Model
VfM Model
(Mori 2006;
Kajita 2007)
Vietnamese VfM
Model (Atmo and
Dufeld 2014;
Hang 2016;La
Ghanian VfM Model
(Ameyaw et al. 2015)
Economically viable
Minimize political
Strong and good
private consortium
Commitment and
responsibility of
public and private
Close supervision of
construction process
by consultants
Private sector
Measurable value
Fair price adjustment
proportional to
requirement change
VFM concepts
Economy Economy Economy Economy
Efciency Efcient Efcient Effective
Effectiveness Effectiveness Effectiveness Efcient
optimal risk
optimal risk
optimal risk
Efciency of
public services
Efcient of
Efcient of
Leveraging the
private sector
private sector
private sector
10 Construction Supply Chains and Their Role in Sustainability
Digital Vulnerabilities and the Sustainable
Development Goals in Developing Countries
Employment and Stability
Green Building
Green Infrastructure: Networks for a Biodi-
verse Future
Green infrastructure: The new paradigm for
resilient cities
Green Path Development and Green Regional
Restructuring for Sustainable Development
Impact of Climate Change on Infrastructure
Industrial Symbiosis: Unlocking Synergies to
Achieve Business Advantages and Resource
Industry 4.0 Supporting Sustainable
Infrastructure Life Cycle and Circular Econ-
omy in Construction: A European Approach
Infrastructure Resilience: Assessment, Chal-
lenges and Insights
Life Cycle Assessment in Contaminated Sites
Life cycle management of infrastructures
Linkages between Climate Change Adaptation
and Development
Natural Capitals Role in Sustainable
Natural Hazards: Impacts on Building Resilient
Infrastructure and Sustainable Industrialization
Open Access Publications and their Impact on
Sustainability Development Goals
Open Data: Towards Achieving and Measuring
Sustainable Development Goals
Research and Development, Innovations and
Sustainability: A Theoretical Perspective
Residual Value of Infrastructures
Resilient Cities in a Sustainable World
Responsible Research and Innovation
Rethinking Technology Sharing for Sustainable
Growth and Development in Developing
Risk-based infrastructure management
approach to Sustainable Development
Role of Design Thinking and Biomimicry in
Leveraging Sustainable Innovation
Scalability and Commercialisation in Support
of Sustainable Development Goals
Sustainable Architecture and Construction
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12 Construction Supply Chains and Their Role in Sustainability
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Full-text available
Purpose – The purpose of this paper is to explore the various approaches prescribed in literature in the assessment of value for money (VfM) of public–private partnership (PPP) projects with the aim to develop a theoretical framework for measuring VfM in Ghana.Public–private partnership (PPP) has long been recognized as an effective way of procuring public infrastructure to deliver value for money, but the subject has received little research attention in Ghana. Design/methodology/approach– The methodology comprises a multi-stage critical review of relevant literature; review of Ghana’s National Policy on PPP and review of the Public Procurement Act, 2003 (Act 663). This paper was underpinned by an interpretivist philosophy and is inductive in nature. Findings– The approach for VfM assessment largely depends on the jurisdiction of the project. Multiple methods (qualitative and quantitative) are used along the project cycle in the bid to achieve VfM. The most common assessment approaches include public sector comparator shadow bid, lease-purchase analysis, cost benefits analysis, public interest test central guidelines and competitive bidding. The study developed a theoretical framework for assessing VfM in Ghana. Research limitations/implications– The research was purely exploratory and non-empirical; and hence cannot be generalized in a broader context. Practical implications– Implementation of the National PPP policy and for PPP to thrive in Ghana, a framework to guide the assessment and achievement of VfM is crucial. The steps outlined if followed would help ensure the public receives the best of all PPP deals in Ghana. Originality/value– This paper is unique providing insights into a conceptual basis for assessing VfM and provides a basis for future empirical study.
Full-text available
The purpose of this study was to understand some of the many perplexing questions eluding managers of overwhelmingly complex construction supply chain management (CSCM) based on review of some important research issues pertaining to construction supply chains. This study has illustrated understanding on CSCM using qualitative approach of triangulation applying foundational research methodology and soft system methodology in a coal-based thermal power plant project to validate its complex CSCM systems. The study highlights that a typical CSCM eco-system for the coal-based thermal power plant construction as unit can be considered to operate as a system with sub-systems as concept phase, procurement phase, production phase, installation phase and winding up phase. This study suffers from methodological limitations associated with qualitative research. Finally, this study provides practical insights for research opportunities in the area of interdisciplinary construction projects.
Full-text available
Purpose This paper aims to present and describe a value for money framework that can be used on alliance projects to improve the consideration of, and reporting of, value for money. Design/methodology/approach Development of the framework used a combination of interviews with domain experts, reflection on practice and a Delphi panel to develop and refine a value for money/best value outcome framework for alliance projects. Findings The results indicate that a robust framework for demonstrating value for money in an alliance project is feasible, and a framework was developed and tested through the Delphi panel. Research limitations/implications The paper briefly describes the research approach but focuses on the outcome rather than the process. Practical implications The research aim of this paper is to expand the conceptual view and to illustrate how a practical assessment of value for money in project alliancing can be achieved. It presents the framework and describes it in sufficient detail for readers to be able to adopt and adapt it. Social implications Value for money in infrastructure projects has profound implications for society; this extends and enhances techniques used to assure value for money. Originality/value The paper provides a value for money framework across the whole project design to delivery cycle.
Public-private partnership (PPP) has become a significant alternative to traditional procurement in improving public projects in many countries since the 1990s. Along with the development of PPP projects, value for money (VFM) assessment is considered as an effective tool to support PPP decision-making process, which is widely used by many governments. Like several countries, Vietnam has applied PPP to develop road transport infrastructure. However, the government of Vietnam has never conducted VFM assessment to determine whether using PPP instead of a conventional delivery is better choice to finance a proposed project. This paper proposes application of the value for money assessment to evaluate the suitability of PPP model for a given project. A case study of My Loi project in Vietnam is used to examine the viability of the method. The results of the research using Monte Carlo simulation methodology demonstrate that there is a 23.4 percent chance that PPP could be a good candidate to implement the My Loi project. Sensitivity analysis reveals that the outcome of VFM is the most sensitive to the toll of Public sector comparator (PSC) and the least sensitive to inflation.
A building project is completed as a result of a combination of many events and interactions, planned or unplanned, over the life of a facility, with changing participants and processes in a constantly changing environment. This paper defines a set of conditions or factors that, when thoroughly and completely satisfied on a project, ensures the successful completion of the facility. Success on a project means that certain expectations for a given participant were met, whether owner, planner, engineer, contractor, or operator. These expectations may be different for each participant. The factors that predicate success were initially derived from the Integrated Building Process Model developed at Penn State by Sanvido in 1990. These factors were then tested on sixteen projects and the results showed excellent correlation between project success and achievement of the factors. Finally, the four factors most critical to success are presented.
Purpose – Many electricity projects in Asian emerging economies involve private finance using Public Private Partnerships (PPPs) yet problems remain in terms of project initiation, commercial structuring, and financial arrangements. The motivation to pursue previous PPP power projects has been unduly influenced by the ability to attract finance rather than an independent assessment of value for money (VfM) of the project. The purpose of this paper is to present the development of VfM framework for improving investment sustainability of PPP power projects in Asian emerging economies. Design/methodology/approach – The drivers for achieving VfM in projects involving both public and private participants have been determined by a critical review of international practices and the development of sustainable energy systems using grounded theory. These drivers have been used to cross-analyse six Asian PPP power projects. Findings – The evaluation of the case study projects identifies the key determining linkages between the project structure, financial and commercial arrangements, and technical solutions with the ultimate project outcomes. It has been established that project outcomes can be improved through the inclusion of VfM considerations, energy security, and environmental sustainability. On the basis of this investigation, a conceptual governmental decision framework for future investment in PPP power projects is proposed. Originality/value – Advocating a VfM framework for assessment of PPP power project proposals in Asian emerging economies is a new approach and offers enhanced benefits both to the public and private sector.
Effective management of the construction project can be achieved by implementing the supply chain management approach. Upstream and downstream construction activities are collaborately conducted. Logistics activities must be considered during the design phase. Information sharing among designers, suppliers, construction engineers, distributors, and project managers are key aspects in using just-in-time (JIT) approach in construction supply chain. Consequently, performance of projects can be improved e.g. less material handling and storage activities can reduce costs. Simulation is used to model and measure the performance of construction supply chain. Finally, the actual building construction case is studied and validated. Objectives of research are (i) to identify critical factors in the construction supply chain, (ii) to reduce logistics cost in the building construction project, and (iii) to implement the supply chain management in the actual construction project.
Pressure is growing from governments and their citizens for business to measure and manage the impacts and outcomes of its behaviour in a range of areas. The demand has led to the formulation of a ‘triple bottom line’ to reflect economic, social and environmental performance.
Purpose – The purpose of this paper is to develop a framework for identifying competitive customer value propositions in retailing. Design/methodology/approach – The paper draws on existing literature on customer value and competitive advantage in order to form an understanding of the key dimensions of customer value, developing a hierarchical model of value propositions and establishing a link between customer value and competitive advantage. Findings – The work suggests a framework for identifying competitive customer value propositions (CVPs) where four hierarchical key dimensions of customer value – economic, functional, emotional, and symbolic – are first identified. In the second stage, a CVP is developed on the basis of these value dimensions. In the third stage, the CVP is evaluated for competitive advantage. It is proposed that economic and also functional CVPs are more likely to represent points of parity, whereas emotional and social CVPs represent points of difference for retail companies seeking differentiation from their competition and gaining of competitive advantage. Originality/value – Identifying competitive CVPs, the paper combines a hierarchical perspective on customer value and the concept of competitive advantage in a manner that offers managers a strategic positioning tool that links the customer's value needs to company resources and capabilities.