Sustainability in subcontractor and supplier selection

Qualitative research on the effectiveness of environmental EMAT criteria on achieving sustainability in the selection of subcontractors and suppliers in the Dutch infrastructure sector

Master thesis (2023)

Authors

A.H. van Slingerland Civil Engineering & Geosciences

Contributors

M.J.C.M. Hertogh Integral Design & Management - CEG (supervisor 1)
D.A. Teigiserová Integral Design & Management - CEG (supervisor 1)
J.A. Annema Transport and Logistics - TPM (supervisor 2)
Faculty
Civil Engineering & Geosciences
Copyright: © 2023 Aloy van Slingerland
Sustainability Infrastructure Tender Subcontractors Award criteria Most Economically Advantageous Tender
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Published Date

20-04-2023

Language

English

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Faculty

Civil Engineering & Geosciences

Abstract

The rapidly growing infrastructure sector has a detrimental effect on climate change. The infrastructure sector is responsible for approximately 10% of worldwide emissions.
In the past years, sustainability became more important in the procurement of infrastructure projects. One of the ways to implement sustainability in infrastructure projects is by award criteria in the tender phase of the project, called EMAT criteria, which stands for Economically Most Advantageous Tender. In this way, the client or procurer can determine the added value of the quality per contractor. So, the EMAT criteria is a way of tendering through the best quality/price ratio.
Selecting a suitable subcontractor and supplier will considerably improve the professional services capabilities of the main contractor. Approximately 80 – 90 percent of large infrastructure projects are subcontracted. This means that to have a transition towards a sustainable sector, the subcontractors and suppliers must help too.
This research, therefore, aims to generate insight into how the EMAT criteria influence the selection of subcontractors and suppliers

A literature study and case study with three cases were performed in this research.
The results of the case study show that the EMAT criteria influenced the selection of subcontractors and suppliers, especially when it comes to sustainability. The EMAT criteria are an incentive for the contractor to look at the sustainability level and development of the subcontractors and suppliers. When the client asks for sustainability in the tender through EMAT criteria, the contractor will use sustainability as one of the selection criteria for subcontractors and suppliers. Moreover, the importance of the EMAT criteria (read the percentage of deduction of the tender bid) influence the trade-offs between the selection criteria as well. When the deduction for sustainability in the EMAT criteria is higher, the more important the sustainability selection criteria will be in the trade-offs for subcontractors and suppliers.

It is recommended to the client and the contractor to have dialogue sessions with each other about the measurement of the sustainable EMAT criteria and the responsibility for the monitoring of this. Making clear how sustainability is measured and what is needed to monitor it, will stimulate the contractors, subcontractors, and suppliers of the infrastructure sector to be more sustainable in the future.
Furthermore, the use of equally weighted sustainable EMAT criteria makes it easier for the contractor to select the most sustainable subcontractor or supplier.
A final recommendation towards the clients of infrastructure projects is that sustainability should be part of EMAT, or part of all present and future contracts in general if we are to achieve sustainability goals for the infrastructure sector, but mostly for the ambitious goals in the Netherlands.