Evaluation framework for green procurement in road construction

Abstract

Purpose – Most barriers and enablers of sustainable projects are related to procurement. The purpose of this paper is to propose a framework for evaluating green procurement practices throughout the lifecycle of road construction projects and demonstrates its application through an Australian case study. Design/methodology/approach – The study is based on linking the phases of road construction with incentive mechanisms for proactively motivating behavioural change. A holistic view on utilised and potential incentives is attempted with a literature review and a state-of-practice review. The latter is based on interviews and 90 policy and procurement documents across five Australian states. Findings – An evaluation framework with seven procurement stages is suggested to describe current state green procurement incentives throughout the delivery lifecycle of road construction projects. The Australian case study was found to provide useful data to identify gaps and strong points of the different states regarding their level of integration of sustainability and greenhouse gas emissions (GHG) reduction elements in their procurement practices. This understanding was used to draw recommendations on future advancement of green procurement. Originality/value – Government entities across the globe can impact considerably the achievement of sustainability and GHG targets, by using their procurement practices and requirements to create incentives for contractors and suppliers to engage in more GHG conscious practices. The present study provides a systematic account of how green procurement practices can be underpinned using the Australian road construction industry as a case study, and distinguish between strong and weak links in the green procurement chain to draw recommendations for future initiatives.

Research on Developers’ Green Procurement Behavior Based on the Theory of Planned Behavior

“…The greater the pressure on employees within the enterprise is, the higher the tendency to GP. Additionally, this rule is also prevalent in the construction industry of the United States [83], the United Kingdom [45] and Australia [84]. However, the research found that the actual internal pressure on employees in Chinese real estate enterprises is not great and thus the degree of implementation of GP in real estate enterprises is not high.…”

“…Actually, this problem is common in many developing and developed countries. For example, Kiron et al [84] conducted a worldwide survey of the sustainable development of enterprises, finding that construction companies generally did not focus on formulating policies to encourage employees and partners to make a positive response to environmental issues.…”

Incentive Contracts for Road Construction to Reduce Greenhouse Gas Emissions

“…o Penalty and Payment calculations: The amount of a Penalty (Pe) is calculated by using Eq. (23). Also, the project payment (Pa) which is calculated according to Eq.…”

“…This established strategy shows that the owner also ready to adapt their performance conditions to alteration context. Adriana et al [23] proposed a green procurement framework for evaluating a contractor of a road construction project in Australia. This is based on interviews and procurement documents across five Australian states.…”

“…The penalty is shown in Eq. 23 (23) where Pe = financial penalty (USD) Qwb = equivalent bid of winning bidder (USD) Qnlb = equivalent bid of next lowest bidder (USD) Q'wb = actual equivalent bid of winning bidder (USD). As a result of having signed a written agreement, the punishment measure can be applied to those who fail to abide by the agreement (or contract).…”