Circular Procurement in Construction: Drivers, Practices, Performance

Abstract

The construction sector accounts for over one-third of global carbon emissions, making procurement a critical lever for advancing circular economy (CE) practices. However, there is limited understanding of how organizations apply CE criteria, including requirements for material reuse, life-cycle assessment, low-carbon product selection, and waste minimization, in practical procurement processes across diverse institutional and organizational contexts. This exploratory qualitative study draws on 11 semi-structured interviews with Finnish SMEs and public or large client organizations. The study employs the Drivers–Practices–Performance (DPP) framework to examine how institutional signals shape procurement behavior and influence resulting outcomes. The study findings show that CE criteria are occasionally introduced at specification but rarely influence evaluation or contracting decisions. Weak and inconsistent regulatory and client pressures mean that internal motivation often serves as the main enabler. However, fragmented responsibilities and limited organizational capacity constrain effective implementation. The study contributes to a deeper understanding of how institutional drivers and organizational practices jointly shape circular procurement performance and identifies key leverage points for aligning policy, stimulating client demand, and strengthening competences within fragmented construction markets.

Keywords: Circular procurement, Drivers–Practices–Performance (DPP), Construction sector

DOI: 10.54941/ahfe1007008