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Tendering strategy for the sustainable social housing industry

Kok, Ruud (2017) Tendering strategy for the sustainable social housing industry.

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Abstract:This thesis is about an innovation in the Dutch construction market: NoM houses. Social renting houses who are not energy efficient, are being renovated into energy neutral houses. These energy neutral houses are called NoM houses. The social renting houses belong to the social housing cooperatives. At the moment, the costs for renovating these social renting houses are still too high, however it is expected that these costs will decline in the future due to amongst others the learning effects and the application of industrialization practices in the construction market. The purpose of this thesis is to set up a tendering strategy for social housing cooperatives to reduce the costs of a NoM renovation to at least €30,000. The estimation of the cost price is done with a learning curve. After using a start price of €130,000 per NoM renovation and a learning rate of 90%, the learning curve is calculated. Take into consideration that currently the NoM renovation price floats around €60-70,000, we conclude that there is still space left for further cost reduction based solely on learning effects. Though, the learning curve tend to flatten around €40,000, which is not enough, because the market wants to go to €30,000 or even less. The remaining €10,000 of the cost reduction should thus come from economies of scale effects such as joint procurement activities and industrial construction practices. Regarding the distribution of the number of renovations over the 5 year, it can be concluded that the renovation production should start prudently with a low number of renovations and that this should be increased in an incremental and exponential way over 5 years.
Item Type:Essay
Clients:
Stichting Pioneering, Enschede, The Netherlands
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:85 business administration, organizational science
Programme:Business Administration BSc (50645)
Link to this item:http://purl.utwente.nl/essays/72855
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