Performance assessment of construction companies for the circular economy: A balanced scorecard approach

Abstract

The construction sector and the industries comprising it are among the most significant contributors to waste generation worldwide. The recently introduced concept of the Circular Economy (CE) offers a promising opportunity to reduce construction and demolition waste (C&DW). However, potent CE strategies and tools concerning formulation and implementation are in the nascent stage of development. This study aims to create a strategic development framework to identify and select specific CE actions and measures and then employ them to address C&DW problems in the construction sector. The methodology is based on applying a “generic” balanced scorecard (BSC) for construction companies in emerging economies, using the case of Kazakhstan. First, following a review of the literature, several relevant CE measures are selected and then prioritized in terms of their importance by a sample of industry professionals. Respondents also indicate the extent to which CE practices are employed by their companies. Next, the data are analyzed to assess the perspectives of business stakeholders on CE in the construction sector. Finally, a BSC tool is developed, and feasible strategies are proposed that can be implemented to achieve a high level of circularity. The tool developed from this research initiative should be applicable for measuring C&DW performance in emerging markets similar to Kazakhstan. The practices rated as the most important are: C&DW transportation cost (Ix = 3.15), adoption of CE to decrease C&DW (Ix = 3.14), management by each contractor of their own C&DW (Ix = 3.39), accurate material estimation (Ix = 3.84), internal knowledge sharing (Ix = 3.59). Practices identified as the most frequently employed are: paying fines for improper treatment of C&DW (89 %), compliance with environmental legislation (91 %), following correct construction methods and sequence (94 %) and using prefabricated structures (94 %), and access for education, particularly, waste processing (94 %).