Public procurement for social objectives in the construction sector

How can public procurement be used to meet societal challenges such as climate change while promoting innovation in the construction sector? In her doctoral thesis at Luleå University of Technology, Emilia Nilsson Vestola explores just this, focusing on the Swedish Transport Administration's work with road operation and maintenance.

“Public procurement can be much more than a tool for buying goods and services. Instead of just choosing the cheapest option, you can set requirements that make suppliers contribute to important societal goals, such as promoting innovation to reduce climate change,” says Emilia Nilsson Vestola.

The thesis is based on two case studies of a total of eight of the Swedish Transport Administration's operation and maintenance projects, where the collaboration between public and private actors has been in focus. The aim has been to investigate how procurement strategies are designed, interpreted and applied in practice.

Innovation in the procurement of ongoing work

One insight is that O&M projects differ from traditional construction projects in their focus on ongoing work, rather than linear processes with a clear start and end point. Success requires flexible and situational strategies that balance long-term societal goals with the immediate needs of each project.

“It's about creating space for innovation, both through formal procurement strategies and by fostering informal collaborations between the different actors in the projects,” says Emilia Nilsson Vestola.

The research shows that public actors such as the Swedish Transport Administration, by applying strategies for collaboration, can enable both gradual improvements and creative solutions to unexpected problems. By utilizing and building on these incremental and reactive innovations in their procurements, public purchasers can use procurement as a tool to meet today's complex societal challenges.

The balance between strategy and reality

Another conclusion is that tensions often arise between strategies formulated at the organizational level and how these strategies are actually applied in individual projects. By focusing on striking a balance between formal and informal collaborative practices, these tensions can be addressed.

“It is crucial to see procurement as a dynamic and adaptable process, rather than a static plan. Public procurers can design contracts that allow for adjustments during the course of the project without violating the LOU, for example by including clauses for changes based on project developments or local conditions,” says Emilia Nilsson Vestola.

One of the key insights of the thesis is to see the possibilities for, and benefits of, local project adaptations of formal strategies. The research shows that it is through a combination of flexibility and strategic targeting that public procurement can become a powerful engine for innovation and social improvement. Public actors thus have a unique opportunity to drive development that not only meets today's needs but also contributes to a sustainable future.

• Read the thesis Procurement of continuous work: Enacting strategies through inter-organizational collaboration in infrastructure operation and maintenance here External link, opens in new window.