University of Twente Student Theses
The poker game of sustainable selection : why the tender with the lowest environmental impact will not always win
Bankras, T.G.T. (2020) The poker game of sustainable selection : why the tender with the lowest environmental impact will not always win.
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| Abstract: | Contracting authorities can have a big role in stimulating sustainable development in the infrastructure industry by selecting a tender based on sustainability criteria. To be able to compare the sustainability of different tenders in a quantitative way the environmental costs indicator (Dutch: Milieukostenindicator (MKI)) can be used. However, to use the MKI to select the actual most sustainable tender, the MKI has to be calculated, assessed, and applied correctly. Interviews and a focus group session have been conducted with different stakeholders in the application of the MKI in the asphalt paving industry. This research identifies broad variation in assumptions, differences between the methods used by contracting authorities, lack of knowledge and reliable information at contracting authorities, and inaccurate control in practice by contracting authorities as the main factors causing the risk of adverse selection on the basis of MKI. It shows that, when implementing the MKI, the risk of adverse selection thwarts the rationales for innovation-friendly procurement. This research suggests composing an expanded manual including basic information on how to apply the MKI in the procurement of asphalt. The manual can help contracting authorities to use the methods for selecting and controlling the tender with the lowest MKI in balance with the available knowledge, information, time, and resources. This will be a step forward in securing contracting authorities to receive the desired results, stimulating contractors to invest in innovation, and stopping the poker game of sustainable selection. |
| Item Type: | Essay (Master) |
| Clients: | Dura Vermeer |
| Faculty: | ET: Engineering Technology |
| Programme: | Construction Management and Engineering MSc (60337) |
| Link to this item: | https://purl.utwente.nl/essays/81512 |
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