Towards circular economy by incorporating product-service system in infrastructure projects

Abstract

This research aims to gain a deeper understanding on the financial, legal, organisational and technical considerations regarding the application of product-service systems. The goal is to identify how these characteristics could be implemented in project delivery methods to contribute to a circular economy. This design-based research is carried out from the perspective of the contractor by participation in a development program to find out how infrastructure could be delivered as a service. Additionally, insights from the perspective of the client and supplier are gathered by semi-structured interviews. Literature study has shown that the more a product is delivered as a service, the more it fits with the principles of a circular economy. In the analysis, it became clear that for the application of product-service system (PSS) in infrastructure projects five conditional state-of- affairs should be fulfilled. In addition, throughout the project lifecycle, some required changes are identified as being important. To develop a project delivery method suited to circular economy and incorporating PSS characteristics it is identified that certain steps should be taken. Therefore, an agenda for change is developed to clarify what steps need to be taken to make the transition to application of PSS characteristics in the infrastructure sector. During the research, a model has been created based on the application of PSS characteristics during the different stages of a project. The outcome of this model leads to the most optimal situation in relation to circular economy for application to the infrastructure sector. The model indicates that the identified prerequisite changes need to take place up front and during the lifecycle of the infrastructure project to transform towards a service-oriented project delivery that complies with the principles of circular economy. Most important change in relation to the existing project delivery methods is the inclusion of the end-of life phase, which should be standard incorporated in project delivery of infrastructure projects to support the closing of the material cycle. Additionally, it turns out that it is important that power (knowledge and resources) and responsibilities are allocated to the service provider to create an economic incentive to preserve the quality and value of the product throughout the contract period. In this research it turns out the most service-oriented category of PSS is currently not possible to achieve in the infrastructure sector due to the current organisation of the Dutch infrastructure sector. However, incorporating PSS characteristics on a project level could support the infrastructure sector in the transition towards a circular economy.