IMPACT OF SUSTAINABLE PROCUREMENT ON CONSTRUCTION PROJECTS : A CASE OF LAHORE, PAKISTAN

Abstract

ABSTRACT The construction industry plays a pivotal role in Pakistan's economic development, driving infrastructural progress and creating job opportunities. However, the industry faces challenges in adopting sustainable procurement practices, which are vital in reduction of environmental impact and improving project outcomes. This research focused on investigating the impact of sustainable procurement on construction projects in Pakistan, specifically examining how this approach can enhance project performance. This research investigates the impact of sustainable procurement practices on project performance in Lahore's construction sector. Using a quantitative approach, data was collected from 258 stakeholders, including project managers and procurement officers in PEC-approved firms. The research has adopted Equation Modeling (SEM) to determine the relationship between sustainable procurement, seller commitment, and the moderating role of Project Management Office. The results indicate that sustainable procurement significantly enhances project performance, with seller commitment acting as a strong mediator in this relationship. However, project management offices were found to have an insignificant moderating effect on the link between sustainable procurement and seller commitment, although they positively influence seller commitment's impact on project performance. These findings suggest that while sustainable procurement practices can improve cost-efficiency, quality, and environmental outcomes, further integration of project management offices in procurement processes is necessary to maximize benefits. This research provides actionable insights for construction firms and policymakers to adopt more sustainable procurement methods, contributing to the broader goal of sustainable development in Pakistan.