The transition towards zero-emission construction equipment: implications for purchasing and subcontracting

Author(s): van den Berg, H.W. (2025)

Abstract:

This thesis examines the transition of the Dutch construction sector from fossil-fuelled construction equipment towards zero-emission construction equipment. The main research question of this thesis was: ”How can Strukton organise their processes to gain access to zero-emission construction equipment?” and the main objective was to develop a purchasing and subcontracting strategy that Strukton can use when purchasing and subcontracting zero-emission construction equipment. The research integrates transition theory with purchasing theory and frameworks to analyse how purchasing and subcontracting must adapt during and after a transition.

Findings show that Strukton’s current purchasing methods are characterised by a strong projectbased orientation, with limited integration into a coherent, company-wide purchasing and subcontracting strategy. On the other hand, Strukton has realised that practices that might be suitable for the purchasing and subcontracting of traditional equipment might not be as suitable for zero-emission construction equipment. Overall, purchasing practices of Strukton are wellsuited to deliver short-term project success but are less effective in positioning the company for long-term competitiveness, particularly in the context of zero-emission construction equipment.

The transition from traditional equipment towards zero-emission construction equipment changes the requirements for purchasing and subcontracting. This research showed (through the use of the frameworks of Kraljic, Bensaou and Dyer) that longer-term relationships with suppliers become essential in order to gain access to the equipment. Especially due to the lack of availability and thus the increased complexity in purchasing. For equipment types that are harder to obtain and are less available in the market, a more long-term relationship is needed. While simpler more available equipment could move more towards a short-term arms-length relationship as is happening now with conventional equipment.

Furthermore, it was found that purchasing during a transition (unstable regime) differs fundamentally from purchasing in a stable market regime. During this transition, access to zero-emission construction equipment holds more complexity and increased transaction costs. Purchasing and subcontracting strategies therefore need to account for this increased uncertainty and complexity. Once zero-emission construction equipment becomes part of the regime, traditional purchasing and subcontracting methods may again apply. The purchasing and subcontracting methods are thus more related to transition phase they are in then the equipment type itself.

These findings resulted in a purchasing and subcontracting strategy that was developed and validated for use within Strukton. The final strategy differentiates the three different levels of strategic, tactical and operational purchasing. It describes for each level which purchasing decisions can be made by Strukton and which purchasing and subcontracting methods might best fit the situation. Furthermore, it describes the risks associated with each purchasing decision and offers methods to reduce or manage these risks.

Document(s):

Master_Thesis_Herwin_def.pdf