Abstract
Building and construction sectors are significant contributors to the global economy, but their energy consumption necessitates greater commitment to sustainable developments. There is therefore a growing demand for green innovation in the form of cleaner production and policies to meet the modern requirements of sustainability. However, the nature in which public work is undertaken is in an environment of project-based market competition, whereby contractors routinely bid for contracts under specific project awarding systems, and variations are accompanied with the unique scope of individual projects before the final goods or services are delivered. A comprehensive understanding of the characteristics and contractors’ behavior in systems could help to identify the leverage points of policies. This paper proposes a system dynamics model, with quantitative analysis and simulations, to demonstrate the problems of a system with different project awarding systems and ineffective market performance. The framework of market efficiency and performance measures has been proposed to evaluate the project-based competition mechanism. Managerial policy implications for market efficiency and sustainable developments can thus be systematically discussed and compared through iterative computer simulations and scenario analysis.
Highlights
Throughout history, the building and construction sectors have long been acknowledged as holding a unique position in contributing to economic development and quality of living improvements around the world
While awareness and new standards for sustainability are increasingly accepted in developed countries, effective governmental policies and market mechanisms could be strong facilitators that promote the quality of living and green innovation
Sustainable development and energy savings are the benefits evolving from a healthy system of project procurement and market competition
Summary
Throughout history, the building and construction sectors have long been acknowledged as holding a unique position in contributing to economic development and quality of living improvements around the world. The building sector accounts for 30%–40% of global energy use by the United Nations. The pressures of sustainable development in the building and construction sectors have become an emerging issue across the world and include the improvement of construction practices and green innovations, such as ecological construction, green building, recycling and eco building materials, in order to minimize their environmental impacts [7,8,9,10,11,12,13]. The building and construction industries have been blamed for issues in technological innovations, quality and sustainability with inadequate market competition and governmental policies. More comprehensive standards and governmental policies that lead to a positive market environment are critical for sustainable developments in the building and construction sectors
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