NDLI: Project-Based Market Competition and Policy Implications for Sustainable Developments in Building and Construction Sectors

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Project-Based Market Competition and Policy Implications for Sustainable Developments in Building and Construction Sectors

Content Provider	MDPI
Author	Yan, Min-Ren
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.
File Size	823296
Ending Page	15448
Page Count	26
Starting Page	15423
File Format	PDF
e-ISSN	20711050
DOI	10.3390/su71115423
Journal	Sustainability
Issue Number	11
Volume Number	7
Language	English
Publisher Date	2015-11-20
Access Restriction	Open
Subject Keyword	project awarding procurement opportunistic bidding contractor selection competition system dynamics sustainability sustainable development policy
Content Type	Text
Resource Type	Article

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