Sustainable procurement in the construction industry
Why it matters and roadblocks ahead!!!
Overview/Background
As the world witnesses a surging population crisis and the attendant need to cater for everyone [provide housing, food, security, access to basic healthcare, education, infrastructure and other social opportunities], there is a growing need than any time in human history to adopt sustainable development measures to allow us live and coexist healthily while protecting the environment and preserving the limited resources we have.
This post seeks to look at the concept of Sustainable Procurement with exphasis on the construction industry, why it matters, possible barriers to its adoption and how these barriers could be addressed to allow for our societies to develop healthily without compromising the social and economic performance of its dwellers.
Definitions
Sustainable procurement aligns with, and is deeply embedded with the principles that guides and drives sustainable development goals. Even though the term was originally conceived at the 2002 United Nations World Summit Conference in Johannesburg, it has to be said, the concept is an expansion of the mid-1990s Green procurement idea (United Nations 2016) which refers to the procurement of goods and services by businesses in a way that minimises the impact on our environment.
So what then is sustainable procurement?
Sustainable procurement as a concept takes it a step further beyond environmental considerations as enshrined in the Green procurement guidelines, to include economic and social variables to the procurement process.
While Walker and Brammer (2009) argues that sustainable procurement concept is consistent with sustainable development goals of promoting a society that develops healthily with genuine concerns for humans and plant life through responsible purchasing and the supply process with strong consideration for good governance and environmental limits. Mensah and Ameyaw (2012) are of the opinion sustainable procurement process goes beyond traditional procurement where organisations place major emphasis on value for money (cost - benefit) during procurement. They argue that sustainable procurement process, more than providing value for money for businesses, is a whole life cycle process that also provides value and positive outcomes for the society, the economy and the environment after the purchase.
The Chartered Institute of Purchasing and Supply (2011) defines sustainable procurement as socially and ethically responsible purchasing, whilst minimisng environmental impact through the supply chain, and adopting economically sound solutions, all entrenched in a good business framework.
Sustainable procurement (SP) in the construction industry refers to the process where goods, services, utilities etc required for building and civil engineering works by industry players (Project Managers, Contractors, Subcontractors, Suppliers etc) are identified and procured in a manner that provides value in terms of cost and quality to the project with minimal environmental impact on the supply chains whilst providing long term benefit to the society and the economy. To achieve this, questions need to be asked if materials requested for are really needed to cut down on cost or look for cheaper alternatives (for e.g bamboos instead of metal props) that are environmentally friendly. Building and construction materials that are recyclable could be used more than once rather than discarding them after first use to reduce waste.
Benefits of SP and Why it matters
Reduction in Cost
Adopting sustainable procurement practices can save cost in private and public funded projects by utilising cheaper alternatives (such as bamboos instead of metal props, light wood sheets as inner building wall partitions instead of concrete blocks, locally sourced building materials instead of imported versions, etc) where available in the construction process.
Good Reputation
Construction businesses/firms who promote and maintain a safe and healthy work environment for its workers and partners are respected and seen in good light by the public and the government. This can improve their brand value and save it from unnecessary litigations.
Growth/Revenue Opportunities
With sustainability assuming greater importance, organisations with a reputation for integrating sustainable procurement into their operations are better positioned to receive grants to develop model cities that promotes SDGs. These projects if properly implemented, can generate massive revenue for such busineses in the long run as investors and consumers who look out for ethical and sustainable projects/products can buy in.
Hedge/Future Proofing
In times of uncertainties or disruption to supply chains due to pandemic, recession or other major global events such as war, companies who invested heavily into sustainable procurement are the big winners. A proper SP plan and strategy can ensure business continuity and help protect the construction project from acute shortages due to supply chain disruptions or changing economic climate.
Barriers to SP Adoption in the Construction Industry
Despite the obvious benefits of sustainable procurement to the construction industry, there is a low uptake and adoption rate across many nations especialy in developing countries such as Nigeria and other sub - saharan African countries. Several studies carried out by various workers investigated practitioners and professionals and analysed their feedbacks. The common barriers identified were:-
Perceived high cost in implementation of sustainable procurement process.
Lack of awareness/low knowledge of sustainable procurement guiding principles by industry practitioners and stakeholders
Lack of enabling policies/laws to monitor and enforce SP in the construction industry.
Non compliance of local industry professionals & policy makers with global sustainable procurement practices/framework.
Remedies to SP Barriers & Conclusion
To increase uptake and mass adoption of sustainable procurement as routine practice in the construction industry, the common barrier clusters listed above needs to be consciously addressed by policymakers, industry professionals, supply chain managers and other stakeholders.
There is need to properly educate construction professionals and practitioners about sustainable procurement guidelines, it's benefits and why it matters in order to equip them with the requisite knowledge to embrace and implement it into their work projects and make it part of their procurement process. With proper knowledge, SP uptake/adoption will dramatically improve.
In developing nations where there are no enabling laws promoting sustainable procurement in private and public funded projects, policy makers should lobby and push forward such laws for legislation. Having such laws and creation of agencies to monitor and enforce compliance with national laws and global SP practices, will go a long way in eliminating most of the common barriers to adoption and lead to construction projects that are not only beneficial to the project owners but bring about greater good to the society, the economy and the environment at large.
Data Source/References
Brammer S, Walker H. 2011. Sustainable procurement in the public sector: an international comparative study. Int J Oper Res Prod Manage. 31:451–476.
Chartered Institute of Purchasing and Supply. 2011. CIPS Sustainable procurement review, 2–3.
Mensah S, Ameyaw C. 2012. Sustainable procurement: The challenges of practice in the Ghanaian construction industry. In: Laryea, S., Agyepong, S.A., Leiringer, R. and Hughes, W. (Eds.) Proceedings of the 4th West Africa Built Environment Research (WABER) Conference, Abuja, Nigeria, p. 871–880.
Ogunsanyaa O, Aigbavboaa C, Thwalaa D and Edwardsa D, 2019. Barriers to sustainable procurement in the Nigerian construction industry: an exploratory factor analysis.
Oxford College of Procurement and Supply. Sustainable procurement: What is it and why does it matter. https://www.oxfordcollegeofprocurementandsupply.com/sustainable-procurement-what-is-it-and-why-does-it-matter/
United Nations Environmental Programme 2016. Sustainable public procurement. www.unep.org/resourceefficiency/portals/24147/scp/procurement/docsres/project Info/studyonImpactofspp.pdf. United Nations 2017. UN Procurement Practitioner’s