Achieving Sustainable Procurement in Construction Projects: The Pivotal Role of a Project Management Office

Abstract

Environmental and ecological impacts associated with construction activities have become an ever-increasing concern, especially the considerable amount of waste generated on construction sites. Regulations and growing client pressure on meeting environmental standards have led contractors to adopt sustainable practices and try to embed this concept in their processes. Sustainable procurement management (SPM) as a potential solution takes the environmental consequences of procurement decisions into account and integrates sustainable practices into project procurement to bring positive environmental outcomes. Previous research has mainly focused on the public sector in achieving green procurement, yet this study attempts to highlight internal capacities that help private organisations manage the requirements associated with practicing sustainability. It is theorised that robust management structures, specifically project management offices (PMOs), would enhance the oversight capabilities of contractors in implementing the SPM process. The objectives of the current study are to (1) identify the requirements of a sustainable project procurement process in construction sites based on a literature review, and (2) explore the facilitative role of PMO units in achieving these requirements in the private sector. A literature review was conducted followed by a qualitative survey to solicit the viewpoints of construction professionals in principle contracting firms. As a result of the study, we identified 17 sustainability requirements and found that PMOs boost collaboration and improve the quality of decision making towards sustainable procurement. The findings (1) explain how PMOs support sustainability, (2) provide insights on implementing sustainable practices in project purchases, and (3) improve theoretical understanding of the SPM principles.

Implementation of circular economy in construction projects: a procurement strategy approach

“…Traditional procurement methods have been found to result in difficulties in dealing with sustainability menaces (Ershadi et al , 2021). They limit contractors’ input to planning and proposing new solutions, which hinders new innovations (Miller et al , 2009).…”

“…However, this industry generates the highest amount of waste globally, consumes more resources than any other industry and accounts for over 40% of the world’s carbon emission (Pomponi and Moncaster, 2017). Sustainability issues in construction projects have become growing concern due to significant amount of waste generation and environmental effects (Ershadi et al , 2021). The construction industry is one of the priority areas for the implementation of CE due to high raw materials consumption (Plebankiewicz, 2022).…”

“…For large-scale projects, traditional procurement methods are ineffective because of the difficulties in dealing with sustainability problems (Ershadi et al , 2021). Moreover, in the traditional construction procurement method, a contractor is often not involved in the project’s planning and design stages (Moradi et al , 2022); this lack of involvement hinders innovation and buildability in projects (Miller et al , 2009).…”

Transcending the silos through project management office: Knowledge transactions, brokerage roles, and enabling factors

“…According to Shi et al (2009), the main purpose behind brokering such knowledge transactions is the need to ensure that new strategies are scrutinised and approved by concerned top managers before enforcing them. For example, the coordinative role of the PMO with respective senior managers as part of the procurement process (Ershadi et al, 2021). Therefore, PMO managers at horizontal cosmopolitan 1 role need to integrate necessary top management perspectives on new initiatives to increase their effectiveness.…”

Project Management Methods, Guides and Standards: A Critical Overview

“…PRINCE2 project management approach in the area of project procurement management is welltailored and applied practical methodology which is the strength of PRINCE2 (Ershadi, Jefferies, Davis and Mojtahedi, 2021). Proper decisionmaking in procurement processes is essential and emphasized in the PRINCE through various techniques which are included in the planning theme (Hubner, Volk and Schultmann, 2018).…”