Organizing for Sustainable Procurement: Theories, Institutions, and Practice

Abstract

That construction procurement needs to be reorganized to make it more sustainable implies that there is a problem with the current situation. Starting from this assumption, an overview of construction procurement sets the scene for a discussion of some recent developments relating to organizational frameworks for sustainable construction procurement. Emergent theories dealing with sustainable procurement are considered. There is a plethora of standards and guidance documents for organizing sustainable procurement originating from a variety of organizations. These considerations form the context for approaches used in practice to achieve sustainable procurement. The chapter concludes with reflections on why current approaches are insufficient. It seems difficult to persuade clients to spend less money over the life cycle of their buildings. Future directions needed to translate sustainable procurement from rhetoric to reality include the development of suitable incentives and appropriate organizational structures. Learning scope: on successful completion of this chapter, readers will be able to: (1) explain construction procurement in relation to other kinds of organizational purchasing; (2) understand the specific reasons why construction procurement involves large numbers of different organizations in relation to phases in the life cycle of a constructed facility; (3) explain procurement as a business process based on incomplete and imperfect information; (4) understand the role of contracts and incentives in bringing about sustainable development; and (5) illustrate the range of policy guidance and standards that relates to construction procurement generally and sustainable procurement specifically.