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

Sustainability

Min-Ren Yan¹ 

[1] Department of International Business Administration, Chinese Culture University, No. 231, Sec. 2, Jian-guo S. Rd., Da-an Dist., 106 Taipei City, Taiwan; E-Mail

关键词: project awarding;    procurement;    opportunistic bidding;    contractor selection;    competition;    system dynamics;    sustainability;    sustainable development;    policy;   

DOI  :  10.3390/su71115423

来源: mdpi

【 摘 要 】

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.

【 授权许可】

CC BY   
© 2015 by the authors; licensee MDPI, Basel, Switzerland.