Establishing the Economic Sustainability Criteria for Assessing Tenders in the Procurement of Building Works

Abstract

As the global construction industry expands, it is imperative to prioritize economic sustainability due to the consequential effect on procurement practices. The procurement of building works, a pivotal phase in the realization of construction projects, requires a comprehensive framework to assess tenders that emphasise economic viability and align with sustainability principles. While traditional procurement processes primarily focus on cost considerations, the contemporary construction landscape necessitates a paradigm shift towards sustainable practices encompassing the economic dimension. Several studies have been conducted on public procurement and sustainability. Nevertheless, most of these studies focused on the environmental side of sustainability, leaving the social and economic dimensions unexplored. Hence, this study explores the sustainable economic criteria for assessing tenders in procuring building works. The study adopted the mixed research method; therefore, qualitative and quantitative data were employed in collecting the data for the study. The analysis deduced that the criteria for assessing the economic sustainability of tenders were categorized into management-related, technical, and commercial-related criteria, with the most significant variables being competitiveness, resource management skills, resource requirement assessment and profitability. The study’s findings can potentially influence the assessment tenders of construction firms for building works. Thus, it suggested that the management practices of the bidders must be thoroughly evaluated as it is a crucial factor in ensuring economic sustainability from the onset of the project processes. This study presents a novel to ascertain the criteria for assessing the sustainable economy of tenders in procuring building works in the Ghanaian Construction Industry. The results of this study can be a source of data to guide the evaluation of tenders in the construction industry in Ghana and other developing countries within the Sub-Saharan Region.