Sustainable procurement through a construction project: a vignette

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1 Loughborough University Institutional Repository Sustainable procurement through a construction project: a vignette This item was submitted to Loughborough University's Institutional Repository by the/an author. Citation: KOH, T.Y.... et al., Sustainable procurement through a construction project: a vignette. IN: Proceedings of the RICS Hong Kong Annual Conference 2011: Why, what and how the truth behind sustainability: building towards a vision, Hong Kong, 14 May 2011, 10 pp. Additional Information: This conference paper was presented at the RICS Hong Kong Annual Conference 14 May The conference web page is at: Metadata Record: Version: Accepted for publication Publisher: c Royal Institution of Chartered Surveyors Please cite the published version.

2 This item was submitted to Loughborough s Institutional Repository ( by the author and is made available under the following Creative Commons Licence conditions. For the full text of this licence, please go to:

3 SUSTAINABLEPROCUREMENTTHROUGHACONSTRUCTIONPROJECT: AVIGNETTE TasYongKOH 1 *,SteveROWLINSON 1,MartinM.TUULI 2,andAnitaM.M.LIU 1 1 DepartmentofRealEstateandConstruction,UniversityofHongKong 2 DepartmentofCivilandBuildingEngineering,LoughboroughUniversity,UK *Correspondingauthor:tasykoh@hku.hk INTRODUCTION Sincethe1990s,therewasanincreasedawarenessoftheinteractionsbetween organisations,environment,andsocietythatattractedtheattentionofboth academicsandpractitioners(cf.cousinsetal.,2004).withinthiscontext,the importanceoftherolesoforganisations activitiesandinteractions,inparticular,the roleofprocurementfunctionhascometothefore.thisphenomenonhasbrought abouttheincreasedrecognitionontheneedofsustainableprocurementwherebya triplebottomlineapproach economic,environmental,andsocialsustainability is preferred.thetrendhighlightstheneedforprocurementactivitiesofbothservice receiver(e.g.theclient)andsupplier(e.g.thecontractor)tobeimplementedinthe waythataddresseconomic,environmental,andsocialissueswhilemaintainingthe viabilityoftheorganisations performance(cf.walkeretal.,2008). Inlinewiththeabovetrend,theHongKongSpecialAdministrativeRegion (HKSAR)governmenthasembracedthetrendofsustainabledevelopment.Inthe procurementofconstructionprojects,thehksargovernmenthasadopted sustainableandcommunityengagement/developmentapproach.four sustainabilitydimensionshavebeenemphasisedwhenprocuringandadministering constructionprojects.thesedimensionsrevolvearoundtheeconomic, environmental,social,andresourceutilisationthemes.thesethemesareembedded inallaspectsoftheprocurementandprojectactivities.therationaleisoneof achievingsustainabledevelopmentofconstructionprojectsinhongkongthrough balancingtheeconomic,social,andenvironmentalconcernsofallthestakeholders intheproject.inthispaper,wepresentavignetteofapublichousingconstruction projecttoillustratethegovernment ssustainabilitydrivewithregardstothe principlesofsustainableprocurementwithinthedomainofrecognisedpractices.we firstbrieflyreviewthebasictenetsofsustainableprocurementasoutlinedinthe recentlypublishedbritishstandard8903(2010).wethenmoveontopresentthe vignetteproper.thisisfollowedbyadiscussionandconcludingremarks. SUSTAINABLEPROCUREMENT THEBASICIDEAS Definitions Theconceptofsustainableprocurementmaybetakenasanaturalextensionofthe conceptofsustainabledevelopment.sustainabledevelopmentmaybedefinedasan enduring,balancedapproachtoeconomicactivity,environmentalresponsibilityand socialprogress(bs8900,2006).thisdefinitionhighlightsthetriplebottomline natureofsustainabilitydrive.anorganisationisanentitydesignedtocoordinatethe 1

4 Kohetal.2011.Sustainableprocurementthroughconstructionproject2 activitiesofitsconstituentstoachievetheobjectivesdesiredbyitsstakeholders.its procurementactivitiesareimportantpartinachievingtheseobjectives. Procurementhencebecomesanarenabywhichthesustainableapproachis manifested.intheconceptionofsustainabledevelopment,sustainableprocurement canbetakentomeanonlypurchasinggoods(andservices)thatarereallyneeded, andbuyingitemsorserviceswhoseproduction,useanddisposalbothminimise negativeimpactsandencouragepositiveoutcomesfortheenvironment,economy andsociety(bs8903,2006,p.1).theessenceisfororganisationstofulfiltheirneeds forgoodsandservicestoachievenotonlythevalueformoneyonawholelifecycle oftheprocuredfacilitybutalsotogeneratebenefitstosocietyandtheeconomy.in addition,theprocurementactivitiesshouldalsominimisethedamagetothe environment. ProcurementActivities Procurementactivitieswithinanorganisationareguidedbysustainable procurementprinciples.sustainableprocurementisbasedonfairness,openness, andnondiscrimination.itisalsoanethicalapproachwherebyorganisationshould actinanethicalandresponsiblemanner,andlookbeyondpureeconomicgain.in addition,theorganisationshouldbemindfulofitsprocurementeffectsonthe qualityoflifeofitsstakeholders,theenvironmentandsociety.theseprinciplesmust percolatetheprocurementactivitiesoftheorganisation. WithinthesustainableconceptionpropoundedbytheBritishStandard, sustainableprocurementcanbeaccomplishedthroughathreeprongapproach. Threeinterrelatedelementsareproposed.Thesearethe fundamentals, procurementprocess, and enablers. Thefundamentalsconsistofthe organisation spolicyingeneral,andsustainableprocurementpolicy(andthe associatedstrategy)inparticular.becausepolicydictatesanoverarchingprinciples andthepurposeofanorganisation,itconstitutesthefoundationsofthe organisation ssustainableactivities.inthisregard,thepolicyprovidesastrategic contextfortheorganisation sprocurementactivities.tobeeffective,organisation needstoensurethatitspolicyandstrategyfullypermeatealllevelsofthe organisation. Policyandstrategydeploymentareeffectedthroughprocurementprocesses. TheStandardhasidentifiedsevenmainprocesses.Theseprocessesarethe identificationoftheorganisation sbusinessneed,thedefinitionofsourcingstrategy, theidentificationofsuppliersandtender,theevaluationofthesesuppliers,the implementationofthecontracts,themanagementoftheperformanceofsuppliers, andthereviewoftheentireprocesschaintodrawlessonslearntforcontinual improvement.itcanbeseenthattheproposedschemeiscloselyalignedtotheplan docheckactframework. Sustainableprocurementstartswithunderstandingandidentificationofthe businessneedsandthedesiredoutcomesoftheorganisation.toachievemaximum impact,itiscrucialtoinvolveprocurementintheearliestpossiblestages inception anddesignstages.theactivitiesinvolvedinthisstageincluderesourcing, stakeholdermapping,identificationofbusinessrequirementandriskassessment. Oncethebusinessneedshavebeenidentified,sourcingstrategycanbeformulated. Themaintaskhereistoformulatetheprocurementstrategywithreferencetothe

5 Kohetal.2011.Sustainableprocurementthroughconstructionproject3 market strendsanddynamics.itisimportantatthisstagetoappreciatethe potentialsocialandenvironmentalconcernswithregardstotheproduction/ constructionoftheproject.theactivitiesinvolvedinthisstagearetheassessmentof availableprocurementoptions,riskandopportunityanalysis,anddecidingbetween procurementtechniques. Withthesourcingstrategydecided,potentialsuppliers/contractorscanbe invitedfortender.veryoften,prequalificationofsuppliersisnecessary.inthis respect,inadditiontothesuppliers technicalcompetencies,assessmentinvolving sustainabilityobjectivesarerequired.theseobjectivesincludethesuppliers waste management,materialrecycledcontent,humanresourcemanagement,local communityengagementplans,etc.tenderevaluationcanthenbeconductedwith theestablishedobjectives.thesuppliersmaybeinvitedforinterviewsandtheir operationsmayalsobeauditedtogaugetheircommitment.thecontractcanthen beletandimplemented.tomakebusinesssense,theagreedsustainabletargets shouldbeincorporatedintothecontract.bylinkingthesustainableandother improvementtargetswithinacohesivecontractualscheme,thecontract administrationandtherelatedreviewprocesshavethepotentialtopositively sustainthefocusandmomentumofsustainability.inthisrespect,intermsof performancemonitoring,itisimportantfortheorganisationtoperiodicallyauditthe supplierthroughoutthedurationofthecontract.finally,becausecontinual improvementisvitalforaprogressiveprocurementapproach,thereisaneedfor reviewsandfeedbacksothatlessonslearntcanbecaptured,shared,andactedupon. Whatarevitalforalltheprecedingpolicydeploymentandprocesses implementation,however,areasetofenablers.thestandardcategorisesthe enablersintoleadershipandgovernance,people,riskandopportunityassessment, engagement,andmeasurement.theseenablersareembodiedintheroutines/ practices,competencies,andcapabilitiesofthepurchasingorganisationtobe utilisedonongoingbasistoimplementtheprocurementactivities. Whileleadershipoftheorganisationprovidesstrategicvisionforsustainable outcomestoguidethestaffs sustainabilityobjectives,governancestructureisvital inensuringaccountabilityinprocurementactivities.closelyrelatedtotheseissues arethepeople s(i.e.thestaffs)buyin,commitment,andcompetence.people,in particular,thestaffs competenceisperhapsthemostcriticalenablerastheyarethe operatorsofallprocurementactivities. Inlinewithgoodmanagementpractice,riskandopportunityassessmentare essentialforsustainableprocurement.apartfromhavingprocessesandcontrols thatareembeddedwithintheorganisation spracticestoidentifyandmanagerisk, goodriskmanagementenablesthecontrolofrisksacrossnotonlytheorganisation s businessaspectsbutalsothedynamicsofthesupplychain.toachievethis,the buyerorganisationsneedtoengageinongoingcommunicationwiththe stakeholdersintheentirespectrumofthesupplychain.finally,measurement systemsneedtobeputinplacesothatprogresstowardsachievingdesirable outcomescanbemonitored. Havinglaidthesustainableprocurementframework,wepresentnextavignette toillustratethepointscoveredintheprecedingdiscussions.

6 Kohetal.2011.Sustainableprocurementthroughconstructionproject4 PROJECTILLUSTRATIONOFSUSTAINABLEPROCUREMENT ProjectDescription Theprojectconstitutedtheconstructionofapublicrentalhousingestateandother relatedfacilities.themainconstructionworksinvolvedthree41storeyresidential blocks.theseblocksareapproximately117metrestall.together,thethreeblocks consistedofover2300rentedflats.otherfacilitiesareincorporatedintheproject. Theseincludeaneighbourhoodelderlycentre,abusterminusthatissituatednextto theestate,atwostoreylifttowerwithanattachedfootbridgethatlinksthefocal estatetotheadjacentresidentialareasandcommercialcentre,andadoubledeck walkwaythatconnecttheestatetootherestate.otherauxiliarystructureswerealso constructed.thesecompriseofdrainageandexternalworks,slopeimprovement works,retainingwalls,permanentprotectionstructuretotheexistinggasofftake station,androadworkswithintheestate. Theclienthadformulatedandimplementedafewsustainablepoliciesand criteriafortheproject.intermsofeconomicsustainability,theeconomicdimension involvesachievingcosteffectivenessfortheproject.thisisimportantaspublicfunds wereutilisedfortheconstruction,andallaspectsofthedevelopment(including construction,andoperationandmaintenance)haveimpactonthebudget.forsocial sustainability,itistheclient sbeliefthatpublichousinganditsdevelopmentand constructionshouldpromotesocialstability,andfostersocialcohesion.during constructionstage,theclientrequiredthatthecontractortocarryoutthe constructionworksinthewaythatkepttheimpactstothesurroundingresidentsto aminimum.forinternalstakeholders themainandsubcontractors personnel theclientencouraged,especiallyonthepartofthemaincontractor,thepracticeof soundhumanresourcemanagement.forenvironmentalsustainability,thisconcerns themaintenanceoftheenvironmentwheretheprojectislocated.twostrategies wereimplementedbetterconstructionmethodsandtheuseofmore environmentallyfriendlymaterialsfortheproject.themainideaistomanagethe materialsproperlyandtoreducetheconsumptionofresources.theseinitiatives wereimplementedwithintheprojectoperations. Fortheclient,sustainableprocurementcommencedatthetenderstage.Because theprojectwasletunderthemodifiedguaranteedmaximumprice(mgmp) arrangement,tendererswererequiredtosubmitdesignproposalsforthedesign andbuildgmppackages.toevaluatethetenders,interviewswereconductedwith thecontractor steam.thesustainablecriteriawereassessedinadditiontotechnical criteria.thesustainablecriteriaincludedthecontractor sresourcesandexpertise; relevantprojectexperience;safety,health,environment,andresources management.decisionwasmadebasedonthebestvalueoffered(insteadoflowest bids)intermsofthebenefitsofbuildability,compliancetospecifications,future maintainability,andcosteffectiveness. Weorganisethefollowingdiscussionsintermsofthethreesustainability dimensions. EconomicDimension Fortheproject,themainthrustineconomicdimensionhastodowiththeclient s implementationofthemgmpprocurementinitiative.inadditiontotheworksleton

7 Kohetal.2011.Sustainableprocurementthroughconstructionproject5 traditionaldesignbidbuildapproach,sixgmppackageswerecontracted.these packageswerethespecialistexternalworks,theenclosuretodrainagereserve,the plumbinganddrainageinstallation,thefireservicesandrelatedwaterpump installation,electricalinstallation,thesuperstructureoftheresidentialblocksother thanthemainstructuralframe.becausethesepackagesinvolveddesignandbuild elements,theyallowedthemainandsubcontractors designleverageand buildabilityscope. Thisprocurementapproachisessentiallyariskreducedmodelasthemain contractorassumedthedesign,(design)development,andtheconstructionofthe works,andthatthemaincontractoralsocommittedtoapriceceilingofhisdesign proposals(rowlinsonetal.,2010).theapproachalsoenabledtheclienttoreduce claimsandofferedthecontractoranincentivetoprovidevalueaddedservicesby assimilatingthecontractor sexpertiseinthedesignandconstructionmethodsto enhancebuildability(chanetal.,2007).inthisrespect,thecontractorwasrewarded forhisimprovementeffortsandcreativityonboththedesignandconstruction operations.thislineofincentiveincludedsharedsavingamongtheclient,themain andsubcontractors.threeinterrelatedmechanismswereputinplace thegain shareandpainsharearrangement,theprojectdisputeresolutionsystem,andthe promotionofacollaborativeworkenvironment.thelasttwomechanismsaresocial innatureandhencearediscussedin SocialDimension subsection. Inthegainshareandpainsharearrangement,theclientandmaincontractor sharedequallythecostsavingofgmppackages.thecontractor,however,wasonly entitledto15%ofhisportionofthesaving.theremaining85%wastosharedamong thecontractorandthegmpsubcontractors.thesubcontractor sportionwaspro ratedonthebasisofthecontributiontonetsavingsbybothparties.this arrangementhadmotivatedboththemainandsubcontractors. SocialDimension Thesocialdimensioncanbeexaminedintwoaspects withinternalstakeholders andexternalstakeholders/community. Theprojectdisputeresolutionsystemwasimplementedasameanstoresolve disputesthatmightarise.stepsinresolvingdisputesinamicablemannerwerelaid down.anadjudicationcommitteewassetupintheproject.thecommitteewas representedbythemainstakeholdersintheproject theclient,themaincontractor, thesubcontractors,andthequantitysurveyor.inthisarrangement,thepartiesin disputesattemptedtosettletheirdifferencesingoodfaithinthefirstinstance throughthecommittee.thematterwasreferredtotheseniormanagementofthe partiesintheeventthatthefirstattemptfailed.inadditiontothisarrangement,an independentdisputeresolutionadvisorwasappointedtofacilitatetheprocess. Topromoteacollaborativeworkingenvironment,aswithmostgovernment projects,nonbindingpartneringwasusedintheproject.ingeneral,itwasobserved thatbettercommunicationandunderstandingwerereachedamongthemain contractorandtheclientpersonnel.inaddition,becauseoftheincreased interactionsamongthetwoteamsforthedesigndevelopmentofthosemgmp packagesthroughinformal workshops convenedbytheprojectarchitect,the cooperationamongtheteamswereimproved.thefrequentcontactsofpersonnel fromthetwosideshadimprovedtheirrelationships.whiletheachievementof

8 Kohetal.2011.Sustainableprocurementthroughconstructionproject6 betterrelationshipsmightnotbeenvisionedinthedesignoftheprocurement method,ithadneverthelessfacilitatedpositiveinternalstakeholdermanagement andsatisfaction.itwasobservedthatthepositiverelationshipshadsomehowbeen translatedinto feelgood factorwhichengenderedacomparativelymoreenjoyable workingenvironmentfortheprojectparticipants.onthesocialdimension,this improvedworkingrelationshiphadledtolesserjobstressamongtheproject participants(cf.leungetal.,2010). Attheworkerslevel,aworkerwageprotectionschemewasimplemented.The schemeaimedtoaddresstheworkers concernsontheprotectionoftheirwagesif themainorsubcontractorsdefaultinpayingwages.anondemandbondwas institutedinthecontractforthisprotection.thebondwasintendedtobeusedto securewagepaymentfortheaffectedworkersintheeventoftheircompany s default.inrelationtothisscheme,activewagemonitoringhadbeeneffectedatthe projectlevel.alabourrelationsofficer(lro)wasemployedtocheck,verify,and monitorworkers wagerecordssubmittedbythemainandsubcontractors.thelro alsorespondedandacteduponworkers complaintsonsite.ontheadministration ofthewagescheme,boththemainandsubcontractorswererequiredtooperate underthewagesdeclarationsystem.ontimewagepaymentwasstressedinthat subcontractorswererequiredtopaytheirworkersontimebeforeapplyingtothe maincontractorfortheirmonthlypaymentinrelationtotheirworksdone.a sophisticatedcomputerisedsystemofwhichthemaincontractorwasresponsibleto maintainwassetuptotrackandmonitorthepaymentscheme.thisarrangement hadprovidedaddedassurancetoworkersontheirwageprotection. Therewereotherinitiativesinstitutedbytheclientandthemaincontractorthat hadsocialcharacter,however.theseinitiativesweremainlyonsitewelfare provisionsfortheworkersandprojectstaffs,andthehumanresourcedevelopment forthemaincontractor sprojectmanagementteam.onthepartoftheworkers,a healthpromotionprogrammewasadministeredthatincludedbasichealthcheckand healthcounsellingforworkerswithhealthconditions.cashprizeswereawardedto highperforming/safeworkers,andaseriesofheatstresspreventiveinterventions mobilemistgeneratingmachines,installationofthermometers,strictobservanceof summerworkingperiods,etc.hadbeensetupthroughoutthesite. Onthepartofthemaincontractorsiteteam,managementinitiativeshadbeen plannedtoaddresstheteam saspirationsonpersonaldevelopmentandenrichment. Theteammemberswereencouragedtoattendvariouspersonaldevelopment courses(e.g.managementandleadershipcourses).however,perhapsinits recognitionontheneedtoimprovethesiteteam sprojectidentity,cohesion,and hencegroupperformance motivatorswithsocialnature themaincontractor throughitsprojectseniormanagementpersonnel(theprojectmanagerandsite agent)hadtakengreatlengthtopromoteafamilialworkingatmosphereamongthe siteteam.themaincontractorhadputinplacecoachingprogramme,recognition, andactivesearchandencouragementforthesitestaffstotrynewthingsin commensurationoftheircapabilities.awellarticulatedpromotionalschemein termsofbothfinancialandpositionalrewardswasadministeredintheprojectin relationtotheseinitiatives. Theproactivenessofclientinengaginginthesocialdimensionofsustainable procurementhadbeenmanifestedmoresalientlyinthemanagementofexternal

9 Kohetal.2011.Sustainableprocurementthroughconstructionproject7 stakeholders/community.theclientbelievedandrecognisedthattheprincipal stakeholderswerethosewhowereaffectedbytheirdevelopmentandconstruction operations.thisrecognitionhadcontributedtotheformulationoftheclient svision insocialsustainability.theclienthadembracedcommunityengagementintotheir projectplanninganddevelopmentprocesses.fortheproject,aseriesofactivities thatwasintendedtoinstilagreatersenseofbelongingandinvolvementofthe communitywiththeprojectwererolledout.amuralpaintingcompetitionwas organisedinthecommunityaroundtheprojectsite.thewinningdesignwas incorporatedasapermanentmuralfeatureforthenewhousingestate.another activitywastheactionseedlingthatwasimplementedtopromotecommunity participation.inthisactivity,thelocalresidentsandthenearbyschoolchildren participatedintheplantingofseedlingandnursingthoseplantsfortheestateunder construction.theseactivitieshadincreasedthecommunityownershipand decreasedresistance(intermsofthenumberofcomplaints)totheproject. Inwhatappearedtobearesponsetotheclient saspirationofasocially sustainableprocurement,themaincontractorhadintroducedthenotionof corporatesocialresponsibility(csr)intheirprojectoperations.whiletheinitiatives ofworkforcewelfareandstaffsdevelopmentasmentionedearlierwereforinternal stakeholders,externallywiththecommunity,themaincontractorhadprovided someservicestothecommunityinthesurroundingareas.thecontractorhad volunteeredhouseimprovement/repairservicestotheelderlyresidentsinthe nearbyhousingestates.twoteamsofrepairpersonnelhadbeendispatchedtohelp repairthemalfunctionedserviceswithintheflatsoftheseelderlyresidents(e.g. changinglightbulbs,repairingleakingplumbing,adjustingmisaligneddoorset).in addition,tofurtherengagethesurroundingresidents,thecontractorhadwillingly furnishedconstructionrelatedinformationtotheresidentswheneverextended workinghourswereanticipated.becausetheresidentswerekeptinformedofthe contractor sactivities,lessercomplaintswereexperiencedintheproject.infact, thesetwoinitiatives,withthoseothercommunityengagements,hadsomehow broughtaboutpositiveimpressionfromtheresidentstotheproject. EnvironmentalDimension Afewenvironmentalinitiativeshadbeenimplementedintheproject.These initiativescanbedividedintotwotypes inprocessinitiativesandproductsusedas formingpartofthefinalbuilding. Theinprocessinitiativesincludetheuseofhardpavedsiteareas,andaseriesof siteenvironmentalcontrols(e.g.wastewatercontrols)toreducedustandnoise generatedbytheconstructionactivities.therecyclingconceptwasalsoinvokedin theproject.theonsiteexcavatedmaterialswerereusedasbackfillingmaterialsfor theretainingstructuresbuiltunderneaththeresidentialblocks,andsomeofthe plasticwastesgeneratedfromtheprojectandelsewherewerereusedinthe adjacentpark.inaddition,extensiveuseofprefabricatedbuildingelementswas calledforintheproject.althoughnotwithoutitsteethingproblemwiththeprefab elements(e.g.leakingfacadeswithinitialinstallation),theconstructionmethodnot onlyreducedsitedustgenerationbutalsoincreasedconstructionspeed. Thelattertypeofinitiativeinvolvedtheincorporationofenvironmentalfriendly productsintothefinalbuildings.theseincludedtheuseoftimberdoorthematerial

10 Kohetal.2011.Sustainableprocurementthroughconstructionproject8 ofwhichwassourcedfromasustainableforest,andtheuseofledlightingsinthe publicareasoftheestate. DISCUSSION Throughthevignette,wehaveillustratedsomeaspectsoftheimplementationof sustainableprocurementassuggestedinthebritishstandard8903(2010).although farfromperfectimplementationofthecriteriaenvisionedinthestandard,the vignettehasneverthelessdemonstratedsomepossiblewaysinsustainable procurementinlocalcontext.firstly,theevidencehighlightstheinterrelatedand intertwinednatureofthesustainableelementsoffundamentals,processes,and enablers.fundamentalsoutlinethehigherlevelorganisationalthrusttoguide sustainableprocurementprocesses.however,itistheenablers,tobemorespecific thequalityofthoseenablersthatbringaboutthesuccessfulimplementationof thoseprocesses.theclientintheprojecthadformulatedthesustainabletargets, communicatedthemtothecontractorintenderinterviews,andcarriedthem throughinthecourseoftheconstructionstage.whatismoreimportant,however,is theinclusionofthoserequirementsincontractualdocumentsandmonitorthe achievementofthosetargetsonanongoingbasis.thismove,ashighlightedinthe Standard,hadputforwardabusinesscaseandprovidecommercialbasisofthe sustainableactivities.inthisregard,itistheholisticintegrationofthethree elementsthatcanpotentiallybringaboutpositiveoutcomes. Intermsofpolicydeploymentandoperationalmonitoring,theclienthad demonstratedaconsiderablelevelofleadership.however,asnotedearlier,the qualityofenablers thepeopleinthisinstanceinthemaincontractor hadgreatly influencedthelevelofsuccessoftheentiresustainablescheme.twointerrelated issueswereatplay.thefirsthastodowiththeacculturationofthecontractor towardssustainableagendabytheclient smachinery.theselectionofthe contractorfromthepremierleaguepool,thetenderinterviews,theincorporationof sustainabletargetsintocontractualdocuments,thepartneringapproach,andthe constantnudgeandmonitoringofperformanceofsustainabilityactivitiesonthepart ofthecontractorhadallaimedataligningthecontractor seffortinthewaythatis consistentwiththeclient sstrategicsustainableintentions.tosomeextent,the acculturationprocessescanbeseenastheclient seffortstoshapeandconstitute themodelofsustainableprocurementthatitdesired(cf.bresnen,2009). Thesecondpointhastodowiththemaincontractor sstrategicintentionin aligninghisactiveparticipationwiththeclient srequirements.inthisregards,similar totheclient,thecontractorachievedhisobjectivesaswell.iftheclienthadthe objectivetobeseenasthemarketleaderandaprogressivepublicclientintermsof sustainablemovementatlarge,thecontractor,byactivelyengagingwiththeclient mootedandhisownsustainableinitiatives(thecontractor sseeminglyselforganised CSRactivitiesreferred),hadsimilarlyachievedhisobjective oneofsupportinghis competitivestrategyasoneofthepioneercontractorsinlocalmarkettoembrace sustainableagendaandcsr.inthisrespect,ifcompaniesareabletocoalescethe notionsofoperatinginasustainablemannerandthenewcsrconception,i.e. conceptualisingthecompanies corebusiness(e.g.constructionoperations)as aligningtosocialwellbeingwiththeuseoftheirskills,resources,andmanagement

11 Kohetal.2011.Sustainableprocurementthroughconstructionproject9 capabilitytobringaboutsocialprogress(porterandkramer,2011),thecompanies mayaswellhavegreaterleverageonthiscompetitiveaspect.theprojecthad providedanavenueforthecontractorinthevignettetodemonstratethisadvantage! However,itsgoesbeyondmerereputationasacompetitiveasset.Byengaging withthesustainableprocessesexperiencedintheproject,withthevirtueoflearning bydoing,thecontractorhaddevelopedasetofcapabilitiespertainingsustainability contracting.thisisaninvaluablecompetitiveassetinthatitgoesintoformingthe contractoroperationalcapabilitiesforfutureapplication.thisisafirstprimemover advantageforthecontractorbecausetheseorganisationalcapabilitiesarefirm specificsetsofskills,processes,androutinesdevelopedwithinthecontractor s operationsthatcanbeusedtosolvetheproblemsthrough(re)configuringits resourceswiththeexperiencegainedfromtheproject(cf.wuetal.,2010). Theseabovesituationshavehighlightedtheneedofmutualdependency(cf.Cox, 2004)(especially)whenanovelinitiativeisputontrial likethesustainable procurement.incanbediscernedfromthevignettethattheeffortsexpendedfrom boththeclientandthecontractortopushsustainabilityinitiativesintofruitionand mutualsupportsfrombothpartieswerepowerfulcommercialmotivesconducivefor thealignmentofmutualinterests.thisisparticularsoifviewedinsuchawaythat thecontractorwaskeentomaintainhispositionwithinthepremierleagueand hencepotentiallysecuringfutureworksfromtheclient,andtheclientwas,inturn, keentomakeitsnewsustainabletrialasuccess.thisphenomenonnotwithstanding, themutualdependencybetweenthebuyerandsupplierhaslentsupporttothe Standard sexhortationthatsustainableprocurementhastomakecommercialcase andthatthekeytosuccesslieswithbothsides (i.e.thebuyer/clientandthe supplier/contractor)willingnesstobringaboutchangeandtheirabilitytowork together. CONCLUDINGREMARKS Inthiscommentary,wehavediscussedtherequirementsintermsofsustainable procurementaslaiddowninthebritishstandard8903(2010).wehavealso illustratedtheimplementationofsuchprocurementwithavignetteofrented housingconstructionproject.whiletheevidencehaveindicatedthatsomeprogress havebeenmadeintermsoftheproject sclientleadershipandfarsightedness,and thecontractor sinclusionofhissustainableprocurementinvolvementasstrategic matter,thisunderstandinghasnotgainedwidespreadacceptance.inotherwords, thesustainabilityagenda,despitegainingincreasedawareness,hasnotbeen institutionalisedinlocalconstructionindustry. Totheextentthatbusinessesseektoconformwithsocialnorms(e.g.strong societalexpectationsonsustainability),andregulatoryinstitutions(e.g. environmentalregulations)(phua,2006;scott,1987),thecurrentstateofaffairs doesnotprovideacredibleimpetusforbothbuyerandsuppliertoengagefullyin sustainableprocurement.inthisrespect,whilethevignettehasdemonstratedsome sustainableendeavours,italsogoestoshowthatthemovementisatitsinfancy stageinhongkongconstructionindustry.thesustainabletargetsintheproject,the accomplishmentofwhichisacommendablegesture,remainedeasilyachievable targetswithsomeefforts(asevidenceinthedescription).inaddition,there

12 Kohetal.2011.Sustainableprocurementthroughconstructionproject10 appearedtobelittleeffortsinthereductionofconstructionprocesscarbonfoot print.whiletheclientdidengagein,tosomeextent,forwardcommitment procurementintheproject,theassessmentofacomprehensivesocialreturnon investmentwasnotontheagenda. Assuch,thereremainsatremendousamountofworkstobedone.Educational andcommunicationalprogrammesneedtobeputplacetoincreasethesociety s knowledgeofsustainability.capacitybuildingonthepartofboththebuyerand supplieronsustainableprocurementandcontractingisalsoessential.allthese effortsareaimedat,inthebroadestsense,institutionalisingthesustainability awarenesswithinthesociety. REFERENCES BRESNEN,M.2009.Livingthedream?Understandingpartneringasemergentpractice. ConstructionManagementandEconomics,27(10),pp BRITISHSTANDARD.2006.BS8900Guidanceformanagingsustainabledevelopment.British StandardInstitute. BRITISHSTANDARD.2010.BS8903Principlesandframeworkforprocuringsustainably guide.britishstandardinstitute. CHAN,D.W.M.,CHAN,A.P.C.,LAM,P.T.I.,LAM,E.W.M.,&WONG,J.M.W.2007.Evaluating guaranteedmaximumpriceandtargetcostcontractingstrategiesinhongkong constructionindustry.journaloffinancialmanagementofpropertyandconstruction, 12(3),pp COUSINS,P.D.,LAMMING,R.C.,&BOWEN,F.2004.Theroleofriskinenvironmentrelated supplierinitiatives.internationaljournalofoperationsandproductionmanagement, 24(6),pp COX,A.2004.Theartofthepossible:relationshipmanagementinpowerregimesandsupply chain.supplychainmanagement:aninternationaljournal,9(5),pp LEUNG,M.Y.,CHAN,Y.S.,&YUEN,K.W.2010.Impactsofstressorsandstressontheinjury incidentsofconstructionworkersinhongkong.journalofconstructionengineeringand Management,136(10),pp PHUA,F.T.T.2006.Whenispartneringlikelytohappen?Anempiricalexaminationofthe roleofinstitutionalnorms.constructionmanagementandeconomics,24(6),pp PORTER,M.E.&KRAMER,M.R.2011.Creatingsharedvalue.HarvardBusinessReview, 89(1/2),pp ROWLINSON,S.,KOH,T.Y.,&TUULI,M.M.2010.StakeholdermanagementintheHongKong constructionindustry.in:chinyio,e.&olomolaiye,p.,eds.constructionstakeholder management.chichester,uk:wileyblackwell,pp SCOTT,W.R.1987.Theadolescenceofinstitutionaltheory.AdministrativeScienceQuarterly, 32(4),pp WALKER,H.L.,DISISTO,L.,&MCBAIN,D.2008.Driversandbarrierstoenvironmentalsupply chainmanagementpractices:lessonsfrompublicandprivatesectors.journalof PurchasingandSupplyManagement,14(1),pp WU,S.JH.,MELNYK,S.A.,&FLYNN,B.B.2010.Operationalcapabilities:thesecretingredient. DecisionSciences,41(4),pp