💼 Module 2: ECONOMICAL Dimension
The Economical Dimension of Pavlos Melas Municipality Park
How can city governments maximize long-term economic value by strategically using public spending to drive be more efficienct, minimize waste, and ensure financial accountability across urban development projects?
Key Concepts
Concept 1: Sustainable Procurement
Definition:
Sustainable procurement is the process of sourcing goods, services, or construction materials in a way that considers not only cost and quality, but also the environmental, social, and economic impacts throughout their lifecycle (oxfordcollegeofprocurementandsupply.com, 2022).
Why It’s Needed:
- Sustainable procurement is needed because by choosing environmentally friendly materials, promoting fair labor practices, and reducing waste, companies and governments can contribute to fighting global issues like climate change and inequality.
- Sustainable procurement helps minimize the carbon footprint of buildings, and creates an economy where resources are reused and recycled (oxfordcollegeofprocurementandsupply.com, 2022).
What is the Benefit of this Concept?
Sustainable procurement benefits both the environment and the economy by:
- Long-term cost savings: By investing in energy-efficient, durable, and sustainable products, the total lifecycle cost is reduced.
- Environmental impact reduction: Fewer carbon emissions, reduced waste, and less resource depletion, contributing to a healthier planet.
- Social responsibility: Ensures fair wages, safe working conditions, and contributes to community development, promoting ethical sourcing. (source: sustainable-procurement.org/)
Models for Sustainable Procurement
Let’s explore the main procurement models recommended for sustainable construction projects. The following content is adapted from the Sustainable Procurement Platform’s guide “Driving Energy Efficient Innovation through Procurement – A Practical Guide for Public Authorities“ one of the existing learning materials and structured according to BeCom’s methodology,
Recommended Procurement Models
The guide provides several models that help public authorities and project leaders integrate sustainability and innovation into construction procurement. Each model offers a different balance of control, collaboration, and risk-sharing. Click each title below to explore models for sustainable procurement and examples.
1. Separate vs. Combined Design & Build
In a Separate Design and Build model, the design work is completed first, and the construction contract is made afterward. This approach allows the client to maintain full control over design quality but often limits collaboration between designers and builders.
In a Combined Design & Build model, one contractor manages both design and construction, improving communication and innovation. It suits projects with sustainability or performance-based goals.
2. Design–Build–Operate (DBO) & Public–Private Partnerships (PPP)
In DBO and PPP models, the contractor designs, builds, and operates the facility. These models are effective for projects that require sustained performance, such as energy-efficient buildings or public infrastructure. They also allow risk-sharing between the public and private sectors, ensuring that the party best equipped to manage specific risks does so.
3. Energy Performance Contracting (EPC)
Energy Performance Contracting is a financing model in which an Energy Service Company (ESCO) undertakes energy efficiency upgrades and is repaid from the actual energy savings achieved. This model is particularly valuable for public buildings requiring renovation or adaptive reuse projects without upfront capital.
4. Collaborative & Innovative Models
Modern procurement increasingly relies on collaboration and early engagement. These approaches emphasize transparency, problem-solving, and flexibility. They encourage innovation by involving suppliers and contractors early in the design process.
5. Design Competitions
Design competitions are a powerful tool for stimulating creative and sustainable solutions from the market. They allow authorities to evaluate multiple ideas before committing to a full design contract, ensuring that innovative and aesthetic dimensions are not overlooked.
Source: sustainable-procurement.org
Concept 2: Circular Economy
Definition:
Circular Economy is an economic system aimed at eliminating waste and keeping resources in use for as long as possible (Source: Otekenari, 2020)
Why It’s Needed:
Traditional development methods create large amounts of waste and uses up finite resources. The circular approach reduces waste by designing infrastructure to be more adaptable, repairable, and recyclable.
What is the Benefit of this Concept?
- Reduced waste and carbon emissions through reuse and recycling.
- Cost savings over time by extending the life of materials and components.
- More resilient supply chains and reduced dependency on raw materials.
- New business opportunities in recycling, refurbishing, and sustainable design (Source: EC Joint Research Centre, 2024)
Concept 3: Sustainability Assessment
Definition:
Sustainability Assessment is a systematic evaluation process that examines the environmental, social, and economic impacts of a project throughout its lifecycle. It helps decision-makers understand trade-offs, identify risks, and ensure that development goals align with long-term sustainability principles.
Why It’s Needed:
Without comprehensive assessment, projects may inadvertently cause environmental damage, social disruption, or economic inefficiency. Sustainability assessment provides evidence-based insights that help prevent costly mistakes and ensure projects deliver genuine value to communities and the environment.
What is the Benefit of this Concept?
- Informed decision-making: Provides data-driven insights for choosing between project alternatives.
- Risk mitigation: Identifies potential negative impacts before they occur, allowing for proactive solutions.
- Stakeholder engagement: Creates transparency and builds trust by demonstrating commitment to responsible development.
- Regulatory compliance: Meets legal requirements and positioning projects for funding opportunities that require sustainability credentials.
With an understanding of how economic sustainability is achieved, let’s now turn to the core concepts of the Educational Dimension