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Business Innovative Practices and Competences within Construction and

Demolition Waste Management

Thesis · August 2017

DOI: 10.13140/RG.2.2.31035.87847

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Department of Architecture and Civil Engineering Division of Construction Management Research Group Name CHALMERS UNIVERSITY OF TECHNOLOGY Master’s Thesis BOMX02-17-90 Gothenburg, Sweden 2017

Business Innovative Practices and Competences Construction and Demolition Waste Management Master’s Thesis in the Master’s Programme International Project Management

GODSWILL MEGWAI

LORENZO LETIC

MASTER’S THESIS BOMX02-17-90

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Master’s Thesis in the Master’s Programme International Project Management

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Department of Civil and Environmental Engineering

Division of Construction Management

Research Group Name

CHALMERS UNIVERSITY OF TECHNOLOGY

Göteborg, Sweden 2017

I

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Master’s Thesis in the Master’s Programme International Project Management

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© GODSWILL MEGWAI AND LORENZO LETIC, 2017

Examensarbete BOMX02-17-90/ Institutionen för bygg- och miljöteknik,

Chalmers tekniska högskola 2017

Department of Civil and Environmental Engineering

Division of Construction Management

Research Group Name

Chalmers University of Technology

SE-412 96 Göteborg

Sweden

Telephone: + 46 (0)31-772 1000

Department of Civil and Environmental Engineering. Goteborg, Sweden, 2017

I

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Master’s thesis in the Master’s Programme International Project Management

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Error! Reference source not found. Department of Civil and Environmental Engineering

Division of Construction Management

Research Group Name

Chalmers University of Technology.

ABSTRACT

Business innovative perspective in promoting sustainable construction and demolition

waste management is investigated in this work as an alternate solution in offsetting

current as well as forecasted waste rise within the construction sector. Business

innovative model towards construction waste management provides a promising

option. The research work uses business model canvas to investigate how innovative

business practices and competencies of some construction firms are towards waste

management. The aim of the research focused on identifying hindrances that could

halt the developing new business proposal toward construction waste management,

investigate the extent of innovative practices of construction firms, and the market

potentials of construction and demolition waste. The results illustrated that current

business practices are still in the descending order of recycling; waste to energy

(WTE) and landfill with notably WTE leading the helm, construction firm demanding

better balance from other actors or stakeholders i.e. the municipalities, partners,

legislators, etc., in striving to develop new business in reducing their waste

generation; distinctive business competence strategy seems to be successful approach

in developing innovative practices towards green construction waste management;

key challenges outlined are high cost of managing waste especially demolition waste,

difficulty for construction firms in envisaging waste as a key resource due to the

quality standard, finding a robust solution in sharing waste management knowledge

and a better steering model in changing old waste behaviors in construction firms

operatives, etc.

Keywords: Construction and demolition waste, business innovative model and

canvas, business practices and competence.

II

Contents

1 CHAPTER ONE 1

1.1 Introduction 1 1.1.1 Research Questions 2 1.1.2 Objectives of the Thesis 2

1.2 Methods 3

1.3 Limitations 3

1.4 Scope of this Research 3

2 CHAPTER TWO 5

2.1 Overview of Waste Management Trends 5

2.2 Construction Waste Practices in Sweden 7

2.3 Business Competence 9

2.4 The Business Model Concept 11 2.4.2 Business Model Innovation / Canvas 13

3 CHAPTER THREE 20

3.1 Methodology 20 3.1.1 Problem Identification 20

3.1.2 Literature Review 20 3.1.3 Screening 20 3.1.4 Interviews 21

3.1.5 Interpretative Study 22

3.1.6 Selection of Themes 22 3.1.7 Ethnical Aspect 23

4 CHAPTER 4 24

4.1 Results And Analysis 24

4.1.1 Screening 24 4.1.2 Results from the Practitioners on Waste Management Practices and

Competence 25 4.1.3 Business Model Canvas Analysis 29

5 CHAPTER 5 35

5.1 Discussion 35

5.1.1 Waste Business Practices and Competence 35

5.1.2 Challenges in developing business innovative waste handling 36 5.1.3 Pros and Cons of Business Model Canvas 41

6 CONCLUSION 43

7 REFERENCES 45

CHALMERS Civil and Environmental Engineering, Master’s Thesis BOMX02-17-90 III

Appendix 49

CHALMERS, Civil and Environmental Engineering, Master’s Thesis BOMX02-17-90 IV

CHALMERS Civil and Environmental Engineering, Master’s Thesis BOMX02-17-90 V

CHALMERS Civil and Environmental Engineering, Master’s Thesis BOMX02-17-90 1

1 Chapter One

1.1 Introduction

In present contemporary society construction and demolition waste has been a major

sustainability issue. Historically, the management of waste generated from construction and

demolition activities has been mostly landfilled in most part of the world but the increasing

volume of production has resulted in increased scarcity of landfill space along with

increased costs of improving environmental protection involved in modern landfill

engineering and management (Symonds, 1999). In recent times, reduction of waste

generated within the construction sector has been encouraged and seen as a necessity in

curbing the significant adverse effect it contributes to the environment. Swedish

Environmental Protection Agency (2012) report pointed out that one of the biggest

challenge of our time is the rise of global population which is strongly linked to the

increasing quantity of waste generated. As a result more infrastructure and buildings are

constructed, demolished and renovated in order to accommodate the global economic

growth (SEPA, 2012). Furthermore, the European Commission indicated construction and

demolition waste as one of the voluminous waste stream generated within the EU.

Statistically, this waste stream accounts about 25% - 30% of all waste streams generated in

the EU (EuroCommission, 2016). This pinpoints that the management of waste from

construction activities is a priority in the EU due to the large amount generated.

Construction waste can be referred to any substance which is generated as a result of

construction activities. While demolition waste represents the materials that arise as a direct

result of site clearance and site formation activities. Both activities include site clearance,

excavation, construction, refurbishment, renovation, demolition and road works which

result in generation of waste material made up of mixture of surplus materials (Essays,

2013). According to EPD (2005), over 80% of construction waste generated are inert. This

waste consists of concrete, bricks, gypsum, wood, glass, metals, plastics, solvents, asbestos

and excavated soil which are considered to have a residual value that can be recycled

(EuroCommission, 2016, Pinto and Agopayan, 1994). These resource values have been

harnessed by some construction firms in some developed countries where recycling and re-

using of waste have been acculturated into their business practices. The European

commission attested that there is a re-use market for aggregates derived from construction

waste in roads, drainage and in other construction projects. In addition, waste management

technologies have been developed and established for sorting and recovery of materials and

energy from construction and demolition waste which are readily accessible and at low-cost

(EuroCommission, 2016). This indicates that waste can inevitably be avoided to a large

extent, reduced, producing benefits for construction industries and ensuring a green

environment.

Despite the established model for waste management i.e. reducing, reusing/recycling, and

residual disposal (4Rs) within the construction sector (Peng et al., 1997), most of the firms

have been slow to embrace these practices. And with the increasing effect of climate

change, resource depletion, exponential population growth, increasing pollution levels, a

more informative and outspoken public as well as customers and an increasing legislative

business environment tend to be imminent reason for construction industries to

CHALMERS, Civil and Environmental Engineering, Master’s Thesis BOMX02-17-90 2

continuously develop a more responsible business model towards the environment. For

example, Sweden as a leading nation in terms of sustainability and environmental

consciousness with regards to waste management have considerably established a more

resource-efficient culture within the construction industry today than in the 1990s (SEPA,

2012). But the present trends and forecast still points towards rising quantities of waste,

despite attaining the objectives and demands of both the European Union (EU) and

Swedish environmental protection agency (SEPA). Furthermore, the trend estimated that

waste generated in Sweden may double by 2030 if no action is taken to reverse it (SEPA,

2012). This illustrates the relevance for a more business innovative practices and

competencies towards construction waste management.

Although, waste management researchers within the construction industry has been

buttressing on how existing work practices, business approach to projects, and technologies

can contribute to generation of waste but it has not really highlight the efficacy of

innovative approach to construction waste management as well as knowledge gained from

each construction projects in other to build their competencies from each operation (Teo

and Loosemore, 2001). According to Warsame (2009) and Tilley (2005) illustration on the

complexity of today's construction projects as well as its uniqueness result in a project

extending beyond a single firm (involving several actors). Therefore, there can be

difficulties for the main contracting organization to influence the work practices towards

waste management within the construction site. Especially the decision making process by

management deciding either to outsource their waste or an in-house waste management

approach. In the case of outsourcing of waste, the economical residual value of the waste is

transported and paid (expensive) for by the construction firm to waste management firms.

But if construction waste are managed using an in-house approach, this can create value for

the construction firm by enhancing high recovery rate, well enlighten employees, profitable

business and can be used for customer marketing as well as build their sustainability brand

(Peng et al., 1997, Hall and Nguyen, 2012). This illustration of embracing in-house waste

management further indicates the importance of a business innovative practices and

competencies.

Therefore, this research focuses on business innovative practices and competencies within

the construction sectors towards waste management. Furthermore, this study uses the

business model canvas to analyze how innovative the business practices and competencies

of construction firms in Sweden are towards waste management.

1.1.1 Research Questions

The purpose and aim is fulfilled through answering the following research questions:

Do some construction firms in Sweden develop new business proposal as well as

competences towards their waste management development?

What are the challenges encountered in developing new business within

construction waste management sector?

What are the market potentials of construction and demolition waste?

1.1.2 Objectives of the Thesis

The objectives or goals of the research study:

CHALMERS Civil and Environmental Engineering, Master’s Thesis BOMX02-17-90 3

Application of the business model canvas in analyzing construction waste

management in today's situation.

The potentials of business model in the construction sector.

Identifying hindrances that can halt construction firm

1.2 Methods

In achieving the purpose of this thesis, relevant academic research papers, documents of

waste management agencies or organizations both in Sweden and EU along with annual

reports from construction firms have been used for this work to develop outlined theories,

concepts, methodologies, etc. Furthermore, screening of top 30 Swedish construction

companies (view appendix) was conducted to find solutions to a more efficient construction

waste management. This selection was based on their net worth values (MSek) in the

construction sector in Sweden (Andersson, 2017, Tollesson, 2016).

1.3 Limitations

The research in this master thesis was attentively prepared and executed. However, there is

still some minor limitations in this research that has to be highlighted. Firstly, the amount

of interviews conducted was carried out on few construction companies out of proposed

investigated construction companies due to time restriction and availability of managers.

More interviews could have been conducted in order to get a more accurate result.

Secondly, the size of the investigated construction companies could have been extended

because this report investigated 30 construction companies. Lastly, the time was restricted

and could have been extended to fortify the quality and reduce the pressure.

1.4 Scope of this Research

The scope of the work embodies the following:

1. The introductory chapter presents background study of the work in order to give the

reader an insight about the purpose behind the thesis and the problems of the

subject. This follows with outlining the research question, objectives of the thesis,

method, limitations and disposition of the thesis.

2. The theoretical framework or key concepts considered in this study are Business

competence, waste management mapping, business model, business model

innovation and the business model tool “canvas”. This creates a foundation and a

deep understanding to the reader which is essential in order to understand the

analysis & discussion.

3. The methodology describes in details the working progress of the authors. The

working progress is divided into four parts; problem identification, literature

review, interviews and result & analysis.

4. Analysis: It analyzes the results extracted from screening construction companies in

Sweden and the conducted interviews. In addition, a connection with the theory and

results is accomplished.

5. Discussion: This chapter discusses improvements, challenges and how to optimize

the construction waste management within construction companies. Self-reflection

CHALMERS, Civil and Environmental Engineering, Master’s Thesis BOMX02-17-90 4

from the authors about construction and demolition waste management is also

written here.

6. Conclusion & Recommendations: Conclusions drawn from the analysis and

recommendations to the current issues and how to solve them in the future is

described here.

7. References

CHALMERS Civil and Environmental Engineering, Master’s Thesis BOMX02-17-90 5

2 Chapter Two

2.1 Overview of Waste Management Trends

In general, waste has continuously been cited as a growing concern and threat to our

environment. For instance, the construction industry alone generates enormous amount of

waste which constitute about 40 percent of total waste generated worldwide. It consumes

32 % of the world’s resources including one-third of water and up to 40 % of energy in its

activities and project (GBCA, 2017, Yeheyis et al., 2013). Within the EU, waste generation

indicator on construction and demolition activities outlined that over 800 million tonnes per

year waste is generated despite having an objective of decreasing generation rate. But,

forecasting calculations on this trend points towards rising as well as doubly of its

generation rate by 2030. Sweden also foreseen the same doubling of their construction

waste (EC, 2016b, SEPA, 2012). In the US, report from advancing sustainable material

management 2014 fact sheet indicated that 534 million tonnes of construction and

demolition waste was generated with a generation rate of 2% from the previous year (EPA,

2016a, EPA, 2016b). Furthermore, the UK construction, demolition and excavation waste

generation was reported to have increased to about 120.4 million tonnes per year in 2016

and with wastage rate of 10.6% (construction wastage rate account for 3.2%) (Robin

Karfoot et al., 2016). According to Yuan and Shen (2011), ''China produces 29% of the

world’s municipal solid waste (MSW) each year, of which construction activities contribute

for nearly 40%'' (Wang et al., 2008, Suocheng et al., 2001). In addition, Duan and Li (2016)

reported that Shenzhen city in southern china generates a total of 35 million tonnes of

construction and demolition waste in 2014, of which 84% disposed of by landfill.

Inductively, these statistical illustration indicate that construction and demolition waste

generation trend tend to be unavoidable and has to be minimised for sustainable future.

However, solutions to minimize the generation of C&D waste have been conducted in the

past few decades by scholars and practitioners. Generic waste management practices accrue

to construction and demolition activities are; reduction, reuse/recycling, compost,

incineration and landfill/disposal. These key waste management concepts consider

minimisation of both resource consumption and environment damage which are the two

platforms for sustainable construction (Yeheyis et al., 2013, Teo and Loosemore, 2001,

Peng et al., 1997, Yuan and Shen, 2011).

CHALMERS, Civil and Environmental Engineering, Master’s Thesis BOMX02-17-90 6

2.1.1.1 Figure 1: Construction waste management hierarchy (Peng et al., 1997)

Reducing waste management practices is considered to be most effective and efficient

method in limiting the quantities of waste generated as well as mitigating cost for

outsourcing waste for recycling or landfill (Poon, 2007, Peng et al., 1997). But since waste

from construction and demolition activities are inevitable due to the uniqueness of each

project, the hostility and unpredictability of the production environment, the fragmented

nature in procuring projects by the project organisations, and the intense cost and time

pressures that characterises many construction projects, other waste management practices

options are preferred (Teo and Loosemore, 2001, Yeheyis et al., 2013). Order of preference

namely reusing, recycling, energy recovering, and disposal are options with waste disposal

kept at the minimum. Furthermore, Teo and Loosemore (2001) mentioned that the balance

between the options are dependent on the nature of the materials wasted, legislative

requirements for specific materials and the cost effectiveness. Incentives have often been

initiated in limiting the use of virgin material, encouraging of resource efficient

construction and ensuring better material and energy recovery from construction waste.

Also, heavy taxation as well as penalties have been promulgated by regulatory bodies to

halt or demerit landfilling and incineration of construction waste (Poon, 2007).

Another waste management research identifies waste reduction behaviour in construction

industry. This initiative embraces attitude perspective of operatives as well as top

management commitment toward waste reduction in executing construction or demolition

projects as a way of mitigating waste generation. Teo and Loosemore (2001) concluded

that changing operative’s waste behaviour during construction project can contribute to

significant result in reducing waste generation. This practice places responsibility of project

managers and team leaders in utilising Ajzen’s ‘theory of planned behaviour’ in shaping the

attitudes operative before, during and after construction projects (Teo and Loosemore,

2001). For example, waste reduction behaviour and sorting of waste has been a norm

among some Swedish construction firms but there are still challenges regarding continues

CHALMERS Civil and Environmental Engineering, Master’s Thesis BOMX02-17-90 7

improvement in this perspective by operatives towards waste reduction behaviours (Falk

and Wallberg, 2015, SEPA, 2012). Also, there are still challenges with top management

engagement on this perspective.

Although, present construction waste management practices have been effective but current

levels of waste generation posed a more threat not only to the environment but both

economic and business perspective which requires a continuous improvement in its

corporate business model and practices (Teo and Loosemore, 2001).

2.2 Construction Waste Practices in Sweden

According to Sweden Environmental Protection Agency (2016), waste management is

considerably more resource-efficient foresighted than in the 1990s. Materials and energy

contained in waste have become much better utilised through an established systems for

sustainable waste management and effective natural resource management (AvfallSverige,

2016, SEPA, 2012). The generic waste management hierarchy or practices as indicated in

figure 1 has been well incorporated into the Swedish Environmental Code. The legal text

inscribed in the Environmental Code states that ‘‘anyone who operates a business or carries

out an action shall be conservative with use of raw materials and energy, and utilize

opportunities to:

reduce the amount of waste,

reduce the amount of harmful substances in materials and products,

reduce the negative effects of waste, and

recycle waste’’ (AvfallSverige, 2016)

In Sweden, municipalities and businesses plays an important role in reducing the amount of

waste and the quantity of hazardous substances in the waste that is produced especially in

the construction and demolition project. This is due to the fact that construction activities

make a substantial environmental impact throughout all phases of the project life cycle

(AvfallSverige, 2016). According to Swedish planning and building act (Law 1987:10) a

permit is required for the construction & demolition of buildings or parts of buildings. In

the case of demolition, a demolition plan should be attached to the permit. Without this

works may not start except approved by the municipality (Eionet, 2012).

Furthermore, since construction and demolition projects generates large quantities of mixed

waste, reused and recycled waste management practice are widely incorporated in its

activities. The waste processing facilities consist of a wide variety of mechanical

processing and sorting methods that is designed for specific mixed waste. The facilities

often utilizes different mechanical separation devices such as dry or wet processing

separators which separates inorganic from organic materials, and wood processing

mechanism which includes shredders, grinders and screen system to separate clean and

contaminated wood (Peng et al., 1997). In spite of mixed waste track record of producing

considerable quantity of hazardous waste which consist of 10% of its waste generated,

present construction materials for new built construction projects are produced in such a

way to enable separation and sorting as well as limited content of hazardous substances

(SEPA, 2012). For instance, new constructions project are built with materials like woods,

glass, cardboard etc in promulgate sustainable environmental consciousness. In addition,

information about materials or construction products are made available to ensure its

CHALMERS, Civil and Environmental Engineering, Master’s Thesis BOMX02-17-90 8

management (SEPA, 2012). In waste-handling activities within the construction sector

permit is required from competent authority (licensing by court or municipal authority or a

less extensive notification to local authorities). According to Deloitte (2015) report,

recovery of waste in constructions requires frequent notification or information flow

mechanism when compared to recycling alternatives (Ordinance on Environmental

assessment SFS 2013:251). Especially, in the case of a minor risk on pollution of land or

water area or groundwater which makes licensing more than a minor risk (Deloitte, 2015).

In addition, a long-term vision or initiative of ‘‘ Zero Waste’’ has been setup by Avfall

Sverige’s to ensure that waste prevention practices should be of high priority to other waste

management practices. This vision has been a drive within all sector not in generating more

waste but a platform for Sweden to climb up the waste management hierarchy in a

measurable manner. This makes businesses been responsible for their own waste

(AvfallSverige, 2016). Other objectives and targets incorporated ensures that at least 70

percent by weight of non hazardous within construction and demolition waste must be

reused, recycled and other recovery practices by 2020. In enforcing this objective, the

Swedish Environmental Protection Agency (SEPA) is placed with the responsibility of

monitoring and compiling reliable statistics for construction and demolition waste

(AvfallSverige, 2016, Deloitte, 2015).

In further push towards waste prevention practices within the construction sector, Swedish

first Waste Prevention Programme (WPP) for 2014-2017 was launched in 2013. According

to Deloitte (2015), the program focuses on four area of which one relates to construction

and demolition waste. It promotes sustainable approach to construction activities. The

approach aims at prevention of waste generation and reduction of hazardous substances in

construction materials and products. Furthermore in the Swedish WPP the following

initiatives/strategies are listed:

1. Hazardous substances in construction products are to be replaced with less

hazardous ones;

2. Construction materials used must be documented;

3. Increase in competence of constructor (more responsibility in demolition projects);

4. Increased supervision in the construction sector;

5. Increased reuse of construction products where dismantling is possible;

6. Increased knowledge of waste prevention and waste flows, and strategic planning

for waste prevention.

Although successful progression in managing of waste within the construction activities

and project have been recorded, recent waste report analysis indicate that one-third of all

waste and one-fourth of all hazardous waste produced in Sweden is generated from

construction activities (AvfallSverige, 2016). Also, current waste generation trend in

Sweden is estimated to double by 2030 due to increase economic growth as well as rise in

population. This still shows that construction and demolition waste will always be

prioritized in its national waste management plan and waste prevention plans (SEPA,

2012). And in attaining further environmental benefits and economic gains in preventing

waste within the construction sector in Sweden, business innovative practices and

competences toward waste can be the pathway.

CHALMERS Civil and Environmental Engineering, Master’s Thesis BOMX02-17-90 9

2.3 Business Competence

According to Van Dijken et al. (2012), business competence is identified as one of the vital

element that measures or determines the business and innovative behavior of firms. It is the

capacity of a firm to carry out internal adoption processes and thereby develop co-operation

relations with external resources (Van Dijken et al., 2012). Also, it is a viable means of

refocusing employees or a firms capability for achieving managerial excellence in modern

competitive business environment (Ahadzie et al., 2014). Lache (2011) indicated

competence as “the set of knowledge, technical and professional abilities and skills that

may characterize an employee, a group of employees or an organization”. This entails an

employee or a team of employees’ capacity of utilizing their personal resources, practical

experience, social abilities in order to leverage the resources allocated to them, i.e. work

equipment and tools, technical sheets, information, relation networks. In addition, it reflects

the practical capacity of a personnel's in a firm in development of abilities and absorption

of knowledge to successfully fulfill assigned tasks (Lache, 2011). The diverse perspectives

or views about business competence illustrate that motivation, knowledge and power are

key components (Van Dijken et al., 2012).

Furthermore, Morris et al. (2005) explained that business competences is used to capture

the internal capability or skill set in which a firm invest on to performs relatively better

than others. This illustrate that firms utilizes their professional competence which

represents a compilation of individual capacity to apply diverse practical knowledge and

abilities, to exhibit the appropriate attitudes demanded by the practice of their particular

occupation and to ensure that all these abilities are blended and transposed in different

work situations and environments, in order to perform the activities demanded at the

workplace at the level specified to the relevant occupational standard (Lache, 2011). It

shows that business competence has the ability to attract necessary expertise from a

business network (Van Dijken et al., 2012). This enhances or solidifies a firm's role in the

external value chain as well as the focus for the internal value chain. This further indicates

how competence is strongly linked or plays a relevant role in the business model of an

organisation.

Competence is a dynamic notion, which involves taking action, adjusting to the

environment and altering the firm’s internal and external environment (Lache, 2011). It can

be divided in three different types of competences which are: individual, collective and

organizational. Individual competence can be described as the foundation to competence

management i.e. the basic competence. It access a person ability to communicate

effectively, work effectively as part of a team, demonstrates critical and decision-making

skills, can adjust to the specific work environment and also cope with unforeseen situations,

is creative, resilient to stress, applies specialist knowledge and proves the capacity to

perform the activities specific to a particular occupation. Secondly, collective competence

can be described as collaboration between individuals which are gathered together as a

team in order to share, merge and exchange individual competence to create value and

enhance performance. Lastly, organizational competence can be associated as the

foundation of professionalization from an organizational perspective i.e. an organization

that can learn to combine economic efficiency with social performance. The ratio of

CHALMERS, Civil and Environmental Engineering, Master’s Thesis BOMX02-17-90 10

available resources and their effective use by the firm defines the level of organizational

competence. Tentatively, business competence comprises of these three competences.

Inductively, the three types of competence enable the inclusion of competence management

in a firm’s strategy. Baker et al. (1997) illustrate different interpretations of competence in

a firm's business strategy. These include:

Strategic competence- The ability to correlate a company's business strategy with

the external competitive environment.

Distinctive competence- The set of core technologies and skills which provide an

enterprise with its competitive advantage

Functional competence. The ability to correlate a firm's competitive priorities and

its strengths within a particular function e.g. manufacturing or marketing.

Individual competence. The set of skills and knowledge that an individual needs in

order effectively to perform a specified job.

Furthermore, competence management concerns mainly the evolving, specialized and

decentralized organizations, with high levels of employee initiative and autonomy and

major focus on cooperation and mobilization on specific projects. Viewed from this

perspective, labor no longer appears a mere cost, but rather as a driver of performance. The

competence-based approach therefore is geared towards the constant increase in the firm’s

efficiency and effectiveness, by correlating the following demands (Lache, 2011):

Increasing performance and the quality of products/services;

Constantly adjusting competences to the technological and organizational changes;

Greater demands related to employees’ capacity to interpret and assess information,

entrepreneurship, and their capacity to respond and solve in real time any work-

related issues, autonomy and adaptability;

Leveraging knowledge and technical proficiency in order to solve work-related

issues and being fully invested in the production process. All this also generates to

changes in employment relations.

Inductively, competency-based measures in particular help in matching managers to

appropriate job. The biggest benefit of competency-based measures is the usefulness in

aiding the development of training programs. Also, the particular measures have the

potential for assisting managers to contribute more effectively to their professional

development by enabling an understanding of the competency profiles involved (Ahadzie et

al., 2014). It also relate to the innovativeness of a firm. Van Dijken et al. (2012) results

shows that the a low business competence tend to go together with low innovativeness of a

firm vice versa. Therefore, by establishing a sound competence management, employees

occupying similar roles can be differentiated and their abilities can be utilized more

effectively. As there are no laws governing these choices, they are made in a discrete and

informal manner in human resource management. The identification of competences is a

challenge for the operation of human resources within the firm, especially in cases of

radical overhauls of the organization of work, because competence demand is not

standardized, contrary to qualification lists and salary rankings, types of studies, seniority,

experience in other positions, etc., which define a standard profile for each occupation or

position.

CHALMERS Civil and Environmental Engineering, Master’s Thesis BOMX02-17-90 11

2.4 The Business Model Concept

With the rapid increasing global economy during the past years businesses has become

more customer-oriented in order to be able to entice customers and at the same time satisfy

their expectations. In addition, re-evaluation of the value propositions that a business

present to customers has to be developed. Therefore, in order to satisfy customer needs a

business has to know how to capture value from providing new products and services. It

was from this thinking that the concept business model emerged (Teece, 2010). The

business model is relatively a new concept but the study of business model can be traced

centuries ago. The notion of a business plan has been around since the late 1800s and it has

slowly and continuously grown from a vague notion to a science by itself (Muehlhausen et

al., 2013). Furthermore, there have been thousands of written articles published in peer-

reviewed academic journals in which the concept business model is defined and addressed.

The business model has also become a frequently common concept within organization-

oriented subjects in different universities worldwide. Despite the amount of written articles

about business model, scholars do not agree on what a business model is. There is no

generalized definition of the concept amongst the scholars. Researchers frequently adopt

different definitions that fit the purposes of their studies but that are difficult to reconcile

with each other (Zott et al., 2011).

However, despite conceptual differences among scholars about business models there are

still some common agreements about the concept. Zott et al. (2011) explains the concept

‘business model’ in four simplified parts. Firstly, the business model is both implicit and

explicit - a new unit of analysis that is distinct from the product, firm and supply chain. It is

the core foundation of a firm but it can also stretch through the whole supply chain.

Secondly, a business model is a holistic systematic approach that explains how firms

structure their business. Thirdly, the activities of a firm and its partners affect and form the

business model. Lastly, business model seek to explain both how to create and how to

capture essential value. (Zott et al., 2011). Teece (2010) claims that a business model

illustrates how a firm creates and delivers value to customers and outlines the revenues,

costs and profits associated with this value. A business model embodies nothing less than

the organizational and financial structure of a business. How to design a business model in

order to create value to attract customers can be seen in figure 2.

CHALMERS, Civil and Environmental Engineering, Master’s Thesis BOMX02-17-90 12

2.4.1.1.1 Figure 2: How to design a business model (Teece, 2010)

Notwithstanding, Chesbrough (2010) claims that certain requirements must be fulfilled

when creating a business model. The following requirements that should be considered are:

The value proposition has to be well defined and proposed properly to enable the

firm to satisfy every customer's need and requirements.

The business model has to identify and analyze all market segments and at the same

time specify and orient their product to attract customers.

Identify and define the whole supply chain and value chain. In other words, a firm

needs to identify whom to create and distribute the product or service and to know

who they need to support.

Estimate the cost structure and map the revenue stream very detailed in order to

predict the profit.

Describes the position of the firm within the value network linking suppliers and

customers.

Formulates the competitive strategy by which the innovating firm will gain and hold

advantage over rivals.

Furthermore, the business model is not solely utilized to create value for the customers and

satisfy their needs. Also, business model can also be utilized as a complement to the

business product market strategy in order to gain competitive advantage. It can have an

essential role and a big impact to the business strategy of a firm. However, firms that

addresses the same customer needs and pursue similar product market strategies can do so

with very different business models (Christensen, 2001). Furthermore, Richardson (2008)

claimed that the business model explains how activities of a firm interacts together which

results in the formation of the business strategy. The activities connect strategy formulation

CHALMERS Civil and Environmental Engineering, Master’s Thesis BOMX02-17-90 13

and implementation. In addition, Shafer et al. (2005) viewed the business model as a

reflection of a firm’s realized strategy. This shows that business model can be a platform

for innovation.

2.4.2 Business Model Innovation / Canvas

In order to achieve competitive advantage and profitability especially in current volatile

business environment, an organisation has to modify their business model and appear more

innovative in its approach. Business model innovation can be very time consuming, costly

and challenging because a new business model will challenge the well-entrenched

practices, requiring the entire organization to move beyond its comfort zone (Euchner,

2016). Furthermore, Teece (2010) explains that the difficulty to change the business model

and become more innovative is due to the fact that business model define the architecture

or structure of the firm, and expansion paths develop from there on out. However, the

implementation phase of a new innovative business model is complex and tricky due to the

fact that business model innovation should be considered and undertaken only when

necessary i.e. when the existing business model is reaching its limits. But at the same time

it must be initiated while that model is still profitable in order to avoid sufficient discomfort

and motivation related to the rapid change (Teece, 2010).

Despite the difficult challenges encountered in implementation, established firms seeking

long-term success cannot abstain from business model innovation. Therefore, a business

model innovation tool that can define how an organization creates, delivers, and captures

value and at the same time become the shared language to manipulate traditional business

models to create new strategic alternatives can be the best solution to solve these

challenges. In addition, it is very difficult to systematically be innovative without a shared

language. Today, there are business model innovation tool like “The Business Model

Canvas” which can be defined as a shared language for describing, visualizing, assessing,

and changing business models. The business model canvas can be described through nine

building blocks to illustrate a company’s business strategy. It’s like a blueprint for a

strategy to be implemented through organizational structures, processes and systems. The

nine blocks involves customers, offer, infrastructure and financial viability and can be seen

in figure 3 (Osterwalder et al., 2010).

CHALMERS, Civil and Environmental Engineering, Master’s Thesis BOMX02-17-90 14

Figure 3: The 9 blocks of Business Canvas model (Osterwalder et al., 2010)

Customer Segments

The definition “target customer” can be explained as the process of selecting marketing

segments and customers in accordance with supplier firms that are able to fulfil the

demanded criteria by supplying the right product with the right quality within a set of time

(Anderson et al., 2009)

There are always customers that have a bigger impact on a company than others and these

are customers that are more important for the company. The expression “segmenting

customer” classifies the customers and emphasis the most influential customers to the

company. The process to segment customers can be done more efficiently and less time

consuming if a company identifies whether a customer is collaborative or transactional.

Collaborative customers can be seen as partners with a close working relationship based on

processes where strong and close social, economic, service and technical ties are formed

over time and increases value for both parties. In opposite, transactional customer solely

concentrates on basic product offering with no value added service. The relationships can

be described as very cold and straightforward with no strings attached (Anderson et al.,

2009).

In addition, there are different types of customer segments. The following terms illustrates

different customer segment:

Mass Market: There is no distinction between different customer segments. The

focus is solely on one large group of customers with similar needs and problems

CHALMERS Civil and Environmental Engineering, Master’s Thesis BOMX02-17-90 15

when creating and defining value propositions, distribution channels and customer

relationships.

Niche Market: Targets specific and specialized customer segments, it is a

customized market. The value propositions, distribution channels and customer

relationships have to be tailored to each customer segment because every segment

requires different product or service.

Diversified: An organization with a diversified customer business model serves two

unrelated Customer Segments with very different needs and problems.

Multi-Sided Markets: Firms that serve a multiple of interdependent Customer

Segments. A credit card company, for example, needs a large base of credit card

holders and a large base of merchants who accept those credit cards.

Value Propositions

The Value Propositions describes how a product or service can create value for a specific

customer segment in order to satisfy the needs of the customers.

According to Kotler and Armstrong (2010) expressed the relevance of product in the

marketing mix as anything that can be offered to a market for attention, acquisition, use, or

consumption that might satisfy customer needs. The product can be seen as the heart of a

firm's marketing effort. Managers have to have in mind that their product does not have to

remain as a fixed, unchanging entity. Because the world is always changing, an

organization should keep asking itself: “Does each product we offer provide relevant and

desired benefits for today's customers' needs?” (McDonald et al., 2013).

Products vary in ranges and types that need to be considered in order to create an

appropriate marketing plan. Some of these variables include technical features, design,

durability robustness, innovativeness, functional performance, range, degree of

customization, quality, volumes available and safety (McDonald et al., 2013). For technical

features, the complexity of the product matters depends on the range of features. The

design describes to which extent the product is made to be attractive and how easy it is to

use. For the durability and robustness, the expected life of the product and its ability to

function in a harsh environment is important. Furthermore, the innovativeness describes to

which extent the product includes new features or features can be done in a different way.

The number of tasks the product can perform and the quality to which it can do them show

the Functional performance of the product. Another important aspect is the range of

different sizes, functionalities and prices the product is available. Especially important to

the purchaser is the degree of customization that can level of detail to which a purchaser

can vary the product to suit their own needs and preferences (McDonald et al., 2013)

What price should be set for each product or service and how should it be constructed?

Price is an important element of the business transaction which should be chosen

appropriately. The reason is that when customers conduct a purchase, they purchase a

'package' of benefits and the price should reflect the value of the total package.

Furthermore, it can have a big impact on a company's market positioning, profit, survival

and also help to differentiate the product or service from those of competitors (Kotler and

Armstrong, 2010). In addition, this aspect of the marketing mix comes with tremendous

CHALMERS, Civil and Environmental Engineering, Master’s Thesis BOMX02-17-90 16

potential for increasing short-term profits. There are many options for an organization to

use pricing as a flexible 'connector' that helps to position a product and match efforts to the

needs of the customer. Based on the sensitive and connecting aspect of this marketing mix,

the three basic pricing strategies can be utilise. This include market skimming pricing,

marketing penetration pricing, and neutral pricing (Wadeecharoen and Kanjanawanikul).

These and take shape in discount structure, volume discounts, retrospective discounts,

early-order discounts, discounts for cash, sales discount amounts, leasing arrangements,

operating leases, finance leases, hire purchase, financial deals, trade-in of old equipment or

sale and leaseback (McDonald et al., 2013).

Channels

Channels can be associated with product placement. The product placement means how to

make products or services accessible for consumers to purchase and use. It also refers to as

identifying the product provider at a convenient location. It is synonymous with distribution

for the ultimate customer to access (Kent, 1986). There are several distribution types, such

as intensive distribution, selective distribution and exclusive distribution. Intensive

distribution is a common strategy for basic supplies, for example snack foods, magazines

and soft drink beverages. Here the products are stocked a majority of outlets that sell the

products to consumers or manufacturers. The selective distribution is usually handled for

rather specialized goods or high-end items, such as designer or prestige goods, that are

carried through specialist dealers. Here the producer relies on only a few retail outlets to

sell their products. Notwithstanding, the exclusive distribution is when a producer selects

only very few distributors to sell a specific product. This is a type of exclusive dealing,

with exclusive agreements, that is commonly for luxury goods and retailers (Boundless,

2016).

The decision regarding how to distribute a product has to rely on understanding the utility a

consumer expects to receive from a product being offered. If the marketer understands this

relation the correct distribution strategy can be chosen (Boundless, 2016).

Customer Relationships

How do we best communicate with our target customers and persuade them to buy our

offer?

The promotional element of the marketing mix deals with ways of communicating with

customers and potential customers. In other words, it can be called marketing

communication mix which consist of the specific blend of advertising, public relations,

personal selling, sale promotion and direct marketing tools in which the company uses to

persuasively communicate customer values and build customer relationship (Kotler and

Armstrong, 2010). Generally the promotional element falls into two broad categories:

personal promotion and impersonal promotion.

Personal promotion is the role of selling, which can be achieved by a sales force, sales

assistants, or through a call centre. Person-to-person selling has many benefits over

impersonal methods. The purchaser has the opportunity to ask questions about the product;

the information can be tailored to the needs of individual customers; the salesperson can

use in-depth knowledge about the product to identify new customer needs and overcome

CHALMERS Civil and Environmental Engineering, Master’s Thesis BOMX02-17-90 17

objections; the customer can be prompted to buy by being asked for an order; the

salesperson can directly negotiate on price, delivery or special requirements and lastly

personal relationships with customers can be developed and thereby lay the foundations for

longer-term business (McDonald et al., 2013)

Impersonal promotion traditionally takes the shape of advertising and sales promotion.

These entail traditional slots on television; newspaper and magazine adverts; billboards;

radio; leaflets; brochures; journals; Yellow Pages; local buses and taxis; and gifts such as

calendars and pens (McDonald et al., 2013). But these area of promotion is undergoing a

huge change in the last years and internet and social media channels are becoming more

and more important tools for organizations and their marketing strategies. Key questions

that need to be considered are (McDonald et al., 2013):

Who is the target? (target customers)

What is it trying to achieve? (objectives)

What should it say? (message)

How should the message be communicated? (medium)

How will the result be measured? (monitoring)

The final aspect of promotion is sales promotions, essentially short-term campaigns to

influence customers to buy more products or use it faster. Usually, promotions take the

form of offering monetary incentives, such as price reductions or a coupons for the next

purchase, goods such as two for the price of one, or services such as free estimates and

holidays (McDonald et al., 2013).

Revenue Streams

The Revenue streams describe the cash a company generates from each customer segment.

There are different pricing mechanisms for every revenue stream such as fixed list prices,

bargaining, auctioning, market dependent, volume dependent, or yield management.

Furthermore, a business model can involve two different types of revenue streams. One

revenue stream is through transaction revenues resulting from one-time customer payments

or and the other one occurs through recurring revenues resulting from ongoing payments to

either deliver a value proposition to customers or provide post-purchase customer support

(Osterwalder et al., 2010). Notwithstanding, there are several ways to generate revenue

streams and these are following (Osterwalder et al., 2010):

Asset Sale: This is generated from selling ownership rights to a physical product.

For example the sales of books, music, consumer electronics, and more online.

Usage Fee: This derives by the use of a particular service. The customer pay to the

amount of usage of the service, for example the number of minutes spent on the

phone or the number of nights rooms are used.

Subscription Fees: This is generated by selling continuous access to a service i.e.

monthly or yearly subscription in exchange for access. Examples here are online

games or music applications where you have monthly fees in order to be able to

listen to music or to continue to play on the game.

Licensing: This is generated from giving customers permission to use protected

intellectual property in exchange for licensing fees. Licensing allows rights-holders

CHALMERS, Civil and Environmental Engineering, Master’s Thesis BOMX02-17-90 18

to generate revenues from their property without having to manufacture a product or

commercialize a service.

Brokerage Fees: This is generated from intermediation services performed on behalf

of two or more parties. An example is credit card providers, they earn revenues by

taking a percentage of the value of each sales transaction executed between credit

card merchants and customers.

Key Resources

The key resources can be described as the fuel to constantly make a business model operate

accurately, it’s the most important assets within a firm and every business model requires

key resources. These resources allow a firm to conduct the value proposition, stabilize

relationships with customers within the customer segments and to earn profit. In addition,

the key resources can be categorized into four different categorizes which are financial,

intellectual, physical or human. Therefore, modification and adaption of right key resources

to right type of business model is very important. For example, a bank utilizes financial key

resources whereas an IT-company that works with software’s requires intellectual key

resources (Osterwalder et al., 2010).

Key Activities Key activities describe the most essential activities i.e. actions a firm most manage in order

to make the business model operate accurately. These activities allow a firm to conduct the

value proposition, stabilize relationships with customers within the customer segments and

to earn profit. Furthermore, key activities have to be differentiated depending on the type of

business model which is similar to the key resources. In addition, key Activities can be

categorized as follows (Osterwalder et al., 2010):

Production- designing, making, and delivering a product in high quality to satisfy

the need of customers.

Problem Solving- Activities to find new solutions to individual customer problems.

Platform/Network- Activities to continually develop and maintain a specific IT-

platform.

Key Partnerships

Key partnerships illustrate the most essential partners a network in order to make the

business model operate successfully. It is very important to find loyal and trustful partners

to enable long term partnership because this is difficult to find in contemporary globalized

environment. The amount of available suppliers is massive and firms today are utilizing

this possibility to outplay suppliers against each other in order to make profit. Furthermore,

established loyal and trustful partnerships will contribute to the acquisition process to

obtain resources, minimize the uncertainty, reduce the overall expenses, raise the profit and

help with technological equipment and solutions (Osterwalder et al., 2010).

Cost Structure

Cost structure illustrates the most important costs incurred from the continuous operations

in a firm. Costs incurred from operations can be calculated immediately after defining the

CHALMERS Civil and Environmental Engineering, Master’s Thesis BOMX02-17-90 19

key partnerships, activities and resources. In addition, fixed costs, variable costs and

different type of cost advantages are differentiated calculated and presented precisely.

Furthermore, all costs in a business model should be minimized but the degree on how low

the cost structure should be minimized varies from business model to business model. It is

therefore essential to distinguish between cost driven and value driven business model cost

structures. Cost-driven business models solely focus on minimizing costs as much as

possible by utilizing low price value propositions, extensive outsourcing and maximum

automation. In opposite, value driven business models focus instead on value creation to

achieve high quality and customer satisfaction. This is achieved through premium value

propositions and a specialized personalized service (Osterwalder et al., 2010).

CHALMERS, Civil and Environmental Engineering, Master’s Thesis BOMX02-17-90 20

3 Chapter Three

3.1 Methodology

This chapter describes the methodology of the thesis in detail. Alshenqeeti (2014) illustrate

that research method is an essential part of any research project since it determine its

success, validity and reliability. The methodology represents a qualitative inductive

research method based on four-five interviews.

3.1.1 Problem Identification

This master thesis was initiated through a discussion with the master program director of

design and construction project management and international project management at

Chalmers University. The discussion was from the start focused on available master thesis

which later evolved into a discussion about business models, how construction waste

management is performed at construction sites and what research areas that can be

undertaken. The next discussion was on the relevance of construction and demolition waste

management in construction firms’ business model, business model innovation and

different challenges that construction sites face during the project design phase were

discussed and briefly analyzed. Material from the discussion together with a brainstorming

session on possible theories and approaches formed a first draft of the aim for this master

thesis. Continuous supervision and consultation of the supervisor with initial studies of

literature regarding construction waste, business model and business model innovation lead

to the research topic being developed and determined.

3.1.2 Literature Review

After identifying the objective and scope of this research work, an extensive literature

review was conducted in the area of waste management practices in construction sectors,

business competence, business model innovation/ canvas. According to Bryman and Bell

(2013), the extensive literature review is relevant since it is a way of legitimizing the

research study being performed. Therefore, several articles as well as relevant reports

provided the foundation to essential knowledge in the field and this also gave an whole

perspective of the subject.

3.1.3 Screening

After establishing foundation to essential knowledge to the field (theoretical framework),

initial research for information was focused on waste management practices and

competence about the construction firms was done. According to Taylor et al. (2006) view

on screening as an initial phase of a qualitative data analysis process where grasping of the

often-voluminous data being assembled. In this initial phase, annual reports, corporate

social responsibility (CSR) reports, and information presented on the construction firms

webpage were reviewed, narrowed and more specific subjects were collected and analyzed

in order to gain a more precise and specialized knowledge on what the firms claimed they

practices. In addition, 30 construction firms was considered in this screening phase which

CHALMERS Civil and Environmental Engineering, Master’s Thesis BOMX02-17-90 21

was choose on their net worth values (MSek) in the construction sector in Sweden

(Andersson, 2017, Tollesson, 2016). The list of these companies can be found in the

appendix of this report.

3.1.4 Interviews

Bryman and Bell (2013) claimed that the most utilized qualitative research method in order

to collect empirical data is through conducting interviews. Also Cohen et al. (2013)

explained interviewing as “a valuable method for exploring the construction and

negotiation of meanings in a natural setting”. It is a more powerful in eliciting narrative

data that allows researchers to investigate people's views in greater depth (Kvale, 2003). In

qualitative interviews, the selection of interviewees is not randomly but systematically

made from consciously formed criteria (Holme et al., 1997). Notwithstanding, this research

collected some amount of empirical data through interviews with managers in different

construction companies which are located in Sweden. The selection of interviewees was

systematically and they were critical evaluated and chosen by the work role, availability

and knowledge about the research study. Due to time restriction and availability with

interviewee, five interviews was done in 3 Big construction firms, 2 waste recycle firm

(with one a subsidiary of one the Big construction firms). Letters were used to labels

different interviewee in this research. Where B represents Construction firms (B1,B2,B3)

and R represents C & D waste Recycling firms (R1 and R2).

Furthermore, to minimize the risk of the researchers influencing the outcome of the

qualitative interview, semi structured-standardized and open interview guides were used

(Jamshed, 2014, Cohen and Crabtree, 2006, Holme et al., 1997). All the interviews started

as explorative interviews. An explorative interview is an open interview with the purpose

of the researchers getting an overall view of the organisation, the processes and possible

hindrances in the everyday work. Atkinson, J., 1964, Handbook for Interviewers. London,

HMSO. After the introduction phase of the interviews, a guide was followed that was

formed in a semi-structured way based on topics and questions important for the research.

According to Bryman and Nilsson (2011), a semi-structured method is when all questions

are covered during the interviews but the disposal of the questions is not central. Instead,

the interviewee should be encouraged to talk candidly, reflect and elaborate around the

topic brought up by the questioner. By doing so, the interview is steered by the interviewee,

providing the interviewer with knowledge about what is important due to the respond

(Bryman and Nilsson, 2011). Moreover, interviews are interactive and are expected to

broaden the scope of understanding investigated areas, as it is a more naturalistic

(Alshenqeeti, 2014). The interview guide in this research served as a support during the

interviews in order to cover all the relevant areas to construction waste management, but

the sequence of the questions was adjusted based on how each interview proceeded.

Notwithstanding, the interviews were all recorded. One researcher was responsible for

leading the interview and making sure all questions were covered and the other being

responsible for taking notes and asking follow-up questions. In addition, the questions in

the interview guideline were formulated based on the objective of the thesis, the research

questions, and with knowledge assimilated through the literature review. Before the

interviews were held, the interview questions were discussed with our supervisor at

Chalmers University of Technology, see Appendix 1.

CHALMERS, Civil and Environmental Engineering, Master’s Thesis BOMX02-17-90 22

Inductively, trust is essential to establish between the interviewee and the interviewer when

conducting qualitative interviews. According to Holme et al. (1997), only when the

interviewee feels that the questioner takes his opinions seriously a meaningful conversation

will emerge. Furthermore, interviewees participated in the interview on free will by reading

and accepting well-written email requests which introduced them to the purpose of the

study and at the same time praised them for their magnificent waste management. Also, the

researchers offered to conduct the interviews at the interviewees’ different headquarters of

the companies in order to evolve the new established relationships into trustfully

relationships. This, together with the promised anonymity, resulted in very honest and

direct answers from the interviewees and many vivid descriptions of the reality of their

work.

3.1.5 Interpretative Study

According to Ary et al. (2013), an interpretative studies provides a descriptive accounts

targeted to understanding a phenomenon using data that are collected from interview or

other ways. It is the most simple and common qualitative studies. The qualitative studies

result in this work was in large amount of data which brings on an extensive and often

time-consuming analysis. The recorded material from the interviews was transcribed and

printed in order to perform a first cut. They were then read thoroughly and parts containing

information and interesting thoughts and standpoints relevant for answering the research

questions where cut out (coding) (Alshenqeeti, 2014). According to Creswell (2013),

interpreting this studies or the analyzing process should be in reflexive, due to the

researcher's interactional experience with interviews. Therefore, result in this work was

coded and reflexive in a cautious manner to ensure quality, validity, and reliability of the

whole research.

Furthermore, the section was represented in two steps. Firstly, construction firms waste

management practices was presented to indicate the state of art which differs from

information presented in most firms annual reports, CSR and well as information presented

on their webpage. Secondly, the business model canvas as a tool was applied to map the

present situation in other to identify area to improve construction firms business approach

to waste.

3.1.6 Selection of Themes

Russel and Ryan (2003) labeled theme identification or selection as one of the most

background tasks in qualitative research due to its position as the heart of any qualitative

data analysis. In addition, Braun and Clarke (2006) expressed that a theme captures

something relevance about the data in relation to the research questions as well as

represents some level of patterned response or meaning within the data set. Furthermore,

theme identification provide accurate reflection of the content of the entire data set (rich

overall description), unpick the surface of reality and ensure clarity of its theoretical

position (Braun and Clarke, 2006). In spite of its relevance and wide application in research

projects, there is no clear agreement or justification on how to select themes (Braun and

Clarke, 2006, Russel and Ryan, 2003, Tuckett, 2005).

CHALMERS Civil and Environmental Engineering, Master’s Thesis BOMX02-17-90 23

Notwithstanding, there are some techniques in identifying themes. According to Russel and

Ryan (2003), these techniques are based on:

An analysis of words (word repetitions, key-indigenous terms, and key-words-in

contexts);

A careful reading of larger blocks of texts (compare and contrast, social science

queries, and searching for missing information);

An intentional analysis of linguistic features (metaphors, transitions, connectors)

and;

The physical manipulation of texts (unmarked texts, pawing, and cut and sort

procedures).

Furthermore, Braun and Clarke (2006) illustrated that themes can be identified within data

(inductive or theoretical); revolves around levels (semantic or latent) and epistemology

(essentialist or constructionist).

Within data: In this approach, themes are selected based on either their strong

connection to the data set or theoretical interest of a researcher on a specific area

from the data set (analytical driven).

Semantic or latent: This approach revolves around levels in which themes are

identified. These levels can be explicit or interpretative levels respectively

Epistemology: Themes selection is determined when a research work is being

conceptualised. Furthermore, the approach guides what the researcher say about the

data set and how information meaning are theorised.

For this work, within data / analysis of words approach were use in themes selection. These

approach in identifying themes are based on their strong link to the data itself as well bears

some similarity to grounded theory. Furthermore, this approach is therefore a process of

coding the data with or without trying to fit it into a pre-existing coding frame. But this

does not limit the openness to emergent themes which is considered based on issues

respondent raise during this research. With this in mind, this offer an accessible and

theoretically flexible approach to analyse data (Braun and Clarke, 2006, Russel and Ryan,

2003, Anderson, 2010).

3.1.7 Ethnical Aspect

According to Creswell and Poth (2017), ethical consideration for data evaluation as well as

representation process are vital aspect researcher encounter in social research work. This

place responsibility on the researcher to ensure the protection of participant from disclosure

of identifiable information, develop trust, promote honesty in reporting, and avoid improper

representation of their organization (Creswell, 2013). In this trend, participant names were

mask as well as organizations involve in this project. In conclusion, letters were used to

labels different respondent in this research.

CHALMERS, Civil and Environmental Engineering, Master’s Thesis BOMX02-17-90 24

4 Chapter 4

4.1 Results And Analysis

In the section, results illustrate the present business situation with handling construction

and demolition waste in some Swedish construction firms. Also, the business model canvas

is use in mapping and analyzing their present practices. Especially, their perspective and

issues associated with waste management as a business or as a service to their existing

customers, the competence developed, integration of waste handling in various phases of a

project, and their main competitors. In addition, the effect of new legislations and

regulations with regards to present waste management practices as well as its future impact

on creating new sustainable market that emphasis the waste as resource was present.

Furthermore, the potentiality of new businesses or markets for construction and demolition

waste as well as key drivers in engaging in efficient waste management practices. Detailed

script of interviewee responds are in the appendix of this report.

4.1.1 Screening

The screening result indicates that most of the construction companies endeavor to recycle

as much material as possible to minimize waste from their operations. The materials

claimed to have recycled are mainly metals, wood, plastic, concrete and gypsum.

Hazardous waste, such as Freon is frequently removed from the cascades in order to be

environmental friendly. Furthermore, hazardous waste in certain cases is classified as

dangerous goods which are usually transported in such small volumes that it is exempt

from the legislation. Majority of construction companies have decided to purchase a new

system for chemicals handling. This system is an important platform for effectively

managing and controlling the use of chemicals, with the aim of reducing the environmental

impact and improving the working environment for operatives. Also, newly formed

chemicals task force has developed a new working method for chemicals handling, and

training courses have been conducted continually within some of these construction

companies.

Figure 4 illustrate the percentage key waste related activities from the 30 top construction

companies in Sweden which was based on annual reports, corporate social responsibility

(CSR) reports, and information presented on the construction firms webpage. Detailed

computation can be found in the appendix.

CHALMERS Civil and Environmental Engineering, Master’s Thesis BOMX02-17-90 25

Figure 4: The Key waste related activities of the top 30 Swedish Construction

companies in percentage

The results from the screening of the 30 top Swedish construction companies shows that

43% conducts construction waste handling and that solely 4% conduct demolition waste

handling. The reason behind these numbers is because demolition waste is so difficult to

manage and it contains a lot of hazardous waste. Furthermore, it requires different kind of

equipment and also bigger space for example companies dealing with demolition are often

located a bit outside. Therefore, most of the construction companies outsource their waste

to other customers. In addition, 10% of the construction companies utilize innovative ideas

and tools to effective their waste management such as lean construction, statistic tool that

can look for every region, BIM and systems for planning logistics. Notwithstanding, 43%

of the construction companies utilizes waste management practices in forms of recycling,

waste to energy and landfill.

4.1.2 Results from the Practitioners on Waste Management Practices

and Competence

The present situation within most of the construction firms indicates that construction waste

handling plays an integral part in business and approach to projects but it depends to what

extent. One of the interviewee (sustainable business development manager for future green

building) in one of the top firms outlined waste handling as an integral aspect of its

business model which contributes in marketing their brand ''....... the deep green

construction.......zero waste to landfill'' (B1). B1 explained how this was achieved

''Before 2010, we were 25% green and 75% vanilla (not green at all) and now its 70%

green and 30% vanilla of the projects''. The interviewee later confirmed that most this

construction waste is recycled to produce other product for infrastructure projects.

Furthermore, B1 expressed top management desire to take step forward to deep green

construction by setting targets ''..... 20% of all our project will be deep green in just a few

years''. Deep green equals sustainable and solely green materials which have a green

record in our system, net zero prime energy, and zero hazardous materials. We have

CHALMERS, Civil and Environmental Engineering, Master’s Thesis BOMX02-17-90 26

made it even harder because we have a much more detailed list of hazardous substances,

than the rest of the companies because we use a data base called Basta and others use

the EU data base (standards)''. B1 emphasizes on clean waste as well as waste to landfill

targets by saying that ''one of the biggest obstacles is that waste shouldn’t be polluted and

if we can keep our construction projects clean we will have a better possibility to reuse

and recycle materials. Last achievement in deep green is zero waste to landfill''.

However, the focus of the construction company is not on minimization on waste despite

the improvements attained on construction waste handling. Instead, the firm aims to reduce

waste to landfill.

Another interviewee (development engineer) in another top construction firm expressed

that ''we don’t do zero waste production. We simply buy the material that we just need to

use for our project because waste management is expensive'' (B2). Furthermore, B2

illustrate their business practices along with waste handling as ''..... We work very closely

our key partners (sub-contractors) in ensuring effective waste handling on construction

site'' According to B2, project manager plans the cradle to grave of a project with the

consciousness that waste fraction are generated in different phases of the project. In

limiting the generation of waste fraction, ''......project manager try to connect with the

waste planer at the construction site on the logistics of materials so that .......materials

transported to the site are delivered at the right floor at the right time. This will diminish

the waste....''. B2 emphasizes the importance of routine (ledningsystem) system on how to

lead the process in which operatives has to follow. B2 expresses frustration and difficulty in

changing operatives’ attitude towards waste management as well as top management

softness in taking waste handling to the next level (reusing/recycling) instead of just

adhering to legislations, environmental certification and profitability from the project. In

this thought, B2 says that ''….. resources are running out''.

In addition, another interviewee (market and sale manager, B3) in a recycling subsidiary

(started in 2014) of another top construction firm explains their role as ''..... creating a

sustainable solution of waste handling for the big company by getting control of our

waste resources.......and challenges finding sustainable solutions for recycling the

resources, preferable by circularity within the company''. And B3 provide details of what

they offer the big company as well as external customers: ''....consulting, Collection

(containers and big bags for different fractions of waste), treatment and recycling

Assistant (people on site helping with logistic and waste management''. This indicates that

waste management practices are embedded in its business model. B3 claimed that they are

one of a few construction firms that manage their own waste to a large extent but explained

that they are continuously engaging in ''...working with systems to Design for

Deconstruction and have KPIs (key performance indicators) for reducing our volumes of

mixed, flammable and deposit waste''. All indication shows that most fraction of

construction waste which are clean are recycled but smaller fraction as well as mixed

fractions are incinerated for energy recovery with less than 10% of treated hazardous waste

send to landfill.

For waste generated from demolition projects which is a large proportion of construction

and demolition, waste management practices within this aspect in these top firms tend to be

bleak due to the fact that most of the waste produced is mixed. Most of the interviewee

expressed their downside practices (incineration and landfill options) and the financial

CHALMERS Civil and Environmental Engineering, Master’s Thesis BOMX02-17-90 27

impact it has on the organization. B2 illustrate that ''demolition waste is so difficult to

manage ...because it contains a lot of hazardous waste.......we have subcontractors to take

care of demolition waste and they understand that there is a lot of money to make in that

area''. Also, transportation of this waste was outlined as an aspect that impacts the

company economically. This account for about 55 percent of the total cost of managing

their waste. On the other hand, B1 explained that the difficulty associated with managing

demolition waste is one of the factors that their company focuses on new building. B1 said

''...... we focus on new buildings now and we have a very few of those projects when it

comes to renovation and demolition, it is not a big market for us. But it is extremely

interesting. However we try to recycle and sell some materials but it’s not a big market''.

In B3 opinion on their demolition waste management practices, agrees with the difficulty

that comes with the mixed composite of this waste and that their practice within their

recycling as well as waste treatment process tries to reduce the volume. B3 mentioned their

incompetence in handling hazardous waste: ''We are outsourcing the handling of

hazardous waste due to lack of competence and resources, in compares to the in

relevance low volume''. Furthermore, B2 indicate the position of the commune and

municipality role in their practices: ''Most of our waste parts go directly to the oven, and

this is so bad. We say that we want renewable resources to 2030 but the community and

state make a lot of money burning our waste because we pay a lot of taxes for electricity.

This is very difficult to balance''. Most firms prefers the option of outsourcing or sub

contract these waste to interested firms but try to ensure that reports on these waste are

managed are reported to the construction firms.

4.1.2.1 Supply Chain of Construction and Demolition Waste

This section illustrates the supply chain of construction and demolition waste of all the

construction companies and recycling firms interviewed. The mapping of construction and

demolition waste was based on the accumulated data from the interpretive studies i.e. data

collection and interviews.

New Building- Construction

Project

Construction site Collaboration with Supplier

<% of clean waste fraction

Recycling

Waste to Energy

Waste sorting according to legislations and enviromental

standard

Construction Material inflow Stream

Material Collection and Sorting on Site

Transportation of waste

>% of clean waste fraction Other partners

Landfill

ReuseTrasportation cost

Low

High

B1

B1,B2,B3

R1,R2

Key partners/Suppliers

Figure 5: Supply chain diagram of construction waste from newly built construction

CHALMERS, Civil and Environmental Engineering, Master’s Thesis BOMX02-17-90 28

The Key partners/suppliers deliver a constants flow of construction material through

transportation to the construction companies at the construction site. B1 wants to establish

future collaboration with suppliers that would enable return of material ordered from the

suppliers. The collaboration would minimize the risk of shortage of material during the

construction phase, cost savings and material savings. Thereafter, the construction

companies B1, B2, B3 collects all the material and sorts on the construction site. Mixed

waste is sorted and clean waste extracted from the mixed waste will be transported to

external customers which are the recycling firms (R1, R2), note that R2 is the recycling firm

to B3 and the whole process is internal conducted by them. Furthermore, the transportation

costs will be less if the construction companies manages to leave clean waste to the

customers and in the opposite the costs will be higher if there is less cleaned waste because

it will require R1, R2 to separate it instead which causes more work. In addition, waste

sorting must follow legislations and environmental standards. Inductively, R1, R2 will

either reuse, recycle, energy to waste or put waste to landfill.

Demolition/Renovation Project

Key partners/Supplier

Demolition site Collaboration

with key partners

<% of mixed waste fraction

Waste to Energy

Waste sorting according to legislations and enviromental

standard

Material Collection and Sorting of mixed

waste on Site

Transportation of waste

>% of mixed waste fraction Other partners

Landfill

Trasportation cost

High

LowB1

B1,B2,B3

R1,R2B1,B2 outsource

mixed waste

Figure 6: Supply chain diagram of construction waste from demolition construction

The demolition waste will be sorted at the demolition site at the construction companies

(B1, B2, B3). Clean waste extracted from the mixed waste at the demolition side will be sent

back to the key partners i.e. materials such as gypsum, wood and metals. This materials that

are categorized as cleaned waste separate from the mixed waste will be reused to other

cascades by the key partners (B1). Furthermore, demolition waste is a lot of hazardous

waste and all the hazardous waste in the mixed waste will be outsourced from B1, B2, B3 to

recycling firms (R1, R2). Note that R2 is the recycling firm to B3 and the whole process is

internal conducted by them. In addition, the transportation costs will be high for the

construction companies because mixed waste requires special equipment and bigger

facilities than for the construction waste and also the process is more complicated. In

addition, waste sorting must follow legislations and environmental standards such as “plan

och bygg lagen” which requires a construction company to do an inventory list and an

environmental plan how to handle the demolition waste. Inductively, R1, R2 will either put

the hazardous and mixed waste to energy to waste or to landfill.

CHALMERS Civil and Environmental Engineering, Master’s Thesis BOMX02-17-90 29

4.1.3 Business Model Canvas Analysis

4.1.3.1 Customer Relationships

The benefits of construction firms on customer relationship in connection to construction

and demolition waste management practices has been quite relevance. All indication shows

that this block can create further market if well communicated. B1 illustrate how they cope

or relate with customers on waste handlings practices when delivery projects by presenting

their profit margin: ''.....we give presentations and try to inform our customer about our

green practices because we portray ourselves as a positive company that is environmental

thinking........... through showing our profit margin we offer open books to illustrate that

we only gain profit at the margin..........we sit down with the client and then we can

discuss and offer him deep green projects by showing the clients the possibilities and

benefits''. Also, B2 expressed their thoughts on waste management relationship with

suppliers and partners in ''wanting a transparent chain of event so we know what happens

to our waste after we give it, we like to be in the future to get paid because we are giving

you the waste''. Another interviewee (Category/sourcing manager, B2) outlined

transactional relationship as a key driver for waste handlings with customers and partners:

''our key now is to find the key drives to start to think about the clean fractions, money is

a big part in changing the mindset......, we need to give them a carrot for each cleaned

fraction (incentives)''. The category manager and the development engineer at B2

expressed their need for better relationships with contractors on waste management

practices: ''.....we want to improve on how to establish a better contract with suppliers

......because we have a lot of clean waste fractions to sell and we need to find buyers after

waste sorting on site''. Furthermore, B2 expressed fall out of relationship with some waste

management customers due to the fact that buyers sort for consistency in waste flow for

their operation or survival: ''...suppliers depend on our product (waste fraction) and they

need a consistent flow or amount of waste which we can guaranty''. This consistency in

waste flow (waste availability) and financial agreements was also highlighted as a key

aspect that impact on their relationship with clients by an interviewee (sustainability

developer, R1) in one of the top waste management partners to most construction firms in

Sweden.

4.1.3.2 Customer Segments

The segmentation of customers is difficult to segment due to the current small construction

and demolition waste resource market. B1 explained that ''….we do a lot of recycling and

we sell some materials but it’s not a big market''. Irrespective of the difficulties in

segmenting customers, the marketing segment differs from each of the construction

companies. For example, some firms outlined subcontractors as a customer segment. B2

stated that'' We have subcontractors to take care of our demolition waste and they

understand that there is a lot of money to make in that area''. Furthermore, B1 illustrate

the relevance of strategic partners who are loyal: ''....we needed strategic partners that are

robust to understand the culture our company; we also looked at their price and how they

can help us in reaching zero waste''. Another marketing segment identified is recycling

firms for construction and demolition waste. R1 and R2 expressed the intentions to be

CHALMERS, Civil and Environmental Engineering, Master’s Thesis BOMX02-17-90 30

external customers’ first choice by competence in handling construction and demolition

waste. In addition, other construction firms can be a customer segment. This is due to the

fact that some of the construction firm lacks the competence in attaining present C & D

waste management standard and therefore need consultancy as a support from other well-

established construction companies. B1 explains that ''we give presentations and try to

inform people and companies all around''.

4.1.3.3 Key Resources

Most of the interviewee concurs to the fact that a continuous improved waste management

practices can improve the quality of resources in waste thereby making it a key resources to

construction firms. R1 and R2 attested that waste is a key resource to their process

respectively that results in production of electricity, district heating, bio fuel, etc. Both

thinks that clean waste can be a key resource to construction firms which can allow them

improve their value proposition, stabilize relationship with other key actors that create

better waste management solutions, as well as earn profit. Furthermore, interviewee agrees

that several key resources can be offered in different dimension. This includes; financial,

intellectual, physical dimension respectively. B2 explained that when supervising

construction projects on site, ''.....I try to show operatives that waste is a resource; ......If

you manage to see the whole picture then you can see what happened before and the hot

spots; because waste can be seen as a snowball effect, one thing that starts the snowball

and then the consequences are big''. Also, examples of physical resources in form of

glass, cardboards, gypsum and metals which together are waste was identified as key

resources. B2 expressed that ....today we pay to give away gypsum but it should be about

time we have to realize that gypsum is gold and that construction need to hold to it so

suppliers or buyers could at least lower the price for us to pay them''. B1 elucidated that

''...We are wasting resources and waste should be seen as resources not waste; we can

reuse it again in the gypsum industry etc''. Furthermore, B2 gave further thoughts about

gypsum plate ''....they can have endless cascades because you make a gypsum plate in a

factory and then you take the truck and drive it to the construction site and then it

becomes waste at the montage. You take this waste back to the factory and they crush it

and the powder will be used in new gypsum. It’s 1:1. Smaller fractions can be taken to

other factory and they tear it apart and you will have a new product with a new function

so this is 1:2''. B1 highlight the intellectual resource aspect (skills and competences) of

construction waste by saying ''.....we give presentations and try to inform operative and

companies all around the world but we don’t see it as a business''. B3 also concur to this

by stating that waste as a resource is ''... beneficial in creating sustainable solutions on

waste handling for the big construction firms by getting control of our waste

resources...''. B1 later suggested that for construction firms to see their waste as a resource

can be driven if ''.... hope that increase in carbon tax on these virgin materials, will drive

innovation in this circular way...''. However, the category manager at B2 outlined that one

important challenge is to convince the top management that waste can be a key resource

because they defines waste in a negative aspect: ''......we try to convince top management

that waste is resources and that it shouldn’t be wasted by using tools like BIM and we

CHALMERS Civil and Environmental Engineering, Master’s Thesis BOMX02-17-90 31

should use tools like this to minimize it because efficient waste handling goes hand in

hand with technical innovation tools''.

4.1.3.4 Channels

The internal distribution of construction materials is outlined as a source of waste

generation on site. Due to inadequate communication and planning on how materials are

been supplied as well as internal movement of materials by operatives within construction

site, some of the interviewee outlined this as a core aspect that affects a construction firm

due to the huge impact it has on the total cost in waste handling operations. B2 comment

that materials order during project are usually more than required. Based on the fact that

contingencies may occur or change in design to satisfy clients’ expectation without

foreseeing the waste. The category manager at B2 outlined that ''we order too many

materials ...and put a lot of focus at the inbound materials but not on the outcome….

generating more waste fractions which require more transports ''. Also, the category

manager at B2 outlined that the quality of materials are affected due to logistics thereby

producing waste: ''A lot of waste emerges during internal transportation in the

construction site...... if you move the gypsum plate more than three times it is economical

dead and quality diminished..''. Furthermore, B1 comment that they have an agreement

with suppliers as well as sub-contractor before embarking on the project on them taking

responsibility of the waste generated according to our own standard: ''....suppliers and

subcontractors need to follow our standards and help us with our green agenda. We have

a controlling system that ensures that we get a monthly report of waste from them with

figures and numbers. We cut the amount of suppliers because we needed strategic

partners they need to know our culture and therefore we chose the best, we also looked at

the price and how they can help us in reaching zero waste''. R1 and R2 explained that

recent development have been achieved to improve the logistics issues or nearness to

construction sites of clients by ensuring that waste sorting and collection centers are

situated in strategic locations.

4.1.3.5 Cost Structure

Since cost structure illustrates the most important costs incurred from the continuous

operations in a firm, all of the construction companies indicated that they have a defined

cost structure for construction waste management. But the extent on how precise the cost

structure is differs. B2 illustrates from a cost perspective how transportation of waste

impact on the total cost ......the highest type of cost that we have is transportation which is

55 % with treatment of waste comes second place”.....and the possible change that can be

achieved if adequate solution is attained in order to encourage the construction and waste

management market. B2 suggestions was that ''....if we leave clean fractions we will lower

the cost for logistics..... as well as minimizing the waste by ordering required material for

the projects (lean construction)''. Furthermore, B2 explained that “our company utilizes a

statistic tool built on excel platform that can calculate all the costs in every region”. B2

explains that cost for outsourcing mixed waste is quite on the high side due to its

complexity to manage. R1 argued that the operational cost of treating mixed waste to

energy is costly due to the fact that the waste may not contain the required energy value in

generating certain amount of electricity which accrues additional cost for other purchasing

CHALMERS, Civil and Environmental Engineering, Master’s Thesis BOMX02-17-90 32

clean waste in other to reach the demand. In most cases, transportation of waste takes half

the total cost of waste handling. The category manager at B2 suggests that ''..... if we

generate clean waste fractions we will lower the cost.....''. B1 gave an insight on how they

moderate their cost by explaining that they ensure that waste are sorted on site which lower

the fee they pay to suppliers or waste handling contractor.

4.1.3.6 Key Partnerships

Key partnerships was outlined by both construction firms and other actors as an essential

network in order to make waste generated within the industry a potential business as well as

a substitute for virgin materials. B2 stated that ''....close relationship with the suppliers that

has a better system of handling the waste is important....''. B1 indicated that key partners

played a key role in their success of zero waste vision: ''our partners are our key

stakeholders in reaching zero waste; we have process on how we must work together in

order to be successful''. Furthermore, B2, B3, R1, R2 outlined two types of partners during

the interview. These partnerships are transactional and collaborative partners respectively.

All agreed that collaborative partnership as the right platform for waste as a business to

exist. The category manager at B2 highlight this by saying: ''....we would like to have a

partner where we can achieve transparency and to improve the circular economy on

waste, but then trust and good relationships and long-term relationship is necessary. We

look for that in new partners with transparent chain of event so we know what happens

to our waste, and possibilities in the future of getting paid because we are giving you the

waste''. Most of the interviewee expressed their struggles and difficulties in establishing

loyal and trustful waste handling partners to enable long term partnership. In this thought

B1 explain why they slash their strings of partners: ''We use to have 20 different suppliers

now 5 contractors because our suppliers need to follow our standards and help us with

our green agenda. We get monthly report of our waste from them with figures and

numbers''. B1 further outlined their need for strategic partners who are robust: ''....we

needed strategic partners that are robust to understand the culture our company; we also

looked at their price and how they can help us in reaching zero waste''. Also B2 illustrate

that ''We have two entrepreneurs today but we used to have 1500 which was narrowed

down to 2 big players; they have to take a lot of responsibility and we work very close to

them''. When ask on how to improve construction and demolition waste business, the

category manager at B2 answered by stating that ''...find the right partner, build trust and

also involve them in the whole supply chain because we all need to find a balance and

know who will cover the startup cost and also who is the key partner, customer,

legislators, etc...''

4.1.3.7 Revenue streams

The revenue stream from construction and demolition waste management is seen by most

construction firms’ perspective as low but not from other partners (waste management

firms). The later, sees construction waste as a revenue generating stream but still not

enough because their product are undervalued. R1 explained that ''.....We have problem

with the economy as energy (product from waste) prices is low, raw material (waste)

bought from construction firms is cheap and if raw material is cheap they prefer juvenile

resources before recycling resources from quality, price, standardization perspective.....''.

CHALMERS Civil and Environmental Engineering, Master’s Thesis BOMX02-17-90 33

Furthermore R1 expressed time as a factor in changing the economy outlook towards

construction and demolition waste: ''It takes time and a good steering model to change old

behaviors''. However, B2 made clear their desire for change on waste revenue stream “we

like to be in the future to get paid because we are giving you the waste. In the startup we

have two things to think about, example if we sell papers (cardboard of papers) we give

one fraction away and we pay the suppliers to take care of it (bulk it) and they sell it; ”.

Furthermore, many of the interviewed construction companies want to implement the

brokerage fee (Osterwalder et al., 2010) to generate revenue from intermediate services

performed on behalf of two or more parties B2 and R1: ''And today we pay to give away

gypsum but it should be on the other hand but it's about the time. They have to realize

the gypsum is gold and that we hold it so they could at least lower the price for us to pay

them'' and '' To be really circular it should be a two party business..... we need a joint

venture. Trust is essential, collaboration is essential instead of competition''. Also, further

illustration on collaboration for waste revenue stream was outlined by B1 about two

companies that collaborates where one is collecting old installation material and another

one is selling and together they form circularity (circular economy) and continuous: ''this is

not yet normal but it will be normal. When we chose our next type of suppliers we can do

something like this''.

4.1.3.8 Key Activities

In improving how construction and demolition waste are managed as well as its business

prospects or possibilities, most of the interviewee shared some of their key activities or

strategies executed. B2 explained how one of their key step in curbing and addressing waste

issues across the country using statistical tool in achieving this: ''To improve the business

(waste management), we try to measure our inbound materials and waste materials using

a statistical tool that we built on excel base to conduct this.....we order too many

materials and we don’t do lean. .....We want to customize the packages to reduce waste

for example woods in one, cement in one and in the end to recycle the material''. Another

key step was to improve the sorted amount of clean construction and demolition waste on

site by finding the key drives to ensure operatives start to think about clean waste in other

to reduce the cost of managing mixed waste. The category manager at B2 outlined that

'....'in the startup we have two things to think about, example if we sell papers (cardboard

of papers) we give one fraction away and we pay the suppliers to take care of mixed waste

for a subsidized amount''. Also, B1 mentioned how they improved their partner

relationship with regards to waste management by limiting the number of key partners in

achieving their zero waste strategy: ''We use to have 20 different suppliers now 5

contractors because our suppliers need to follow our standards and help us with our

green agenda''. Furthermore, presentations and customer education by top management

was outlined as key activities for improving waste handling and green construction: ''....top

management especially the CEO was active and through education, lectures, discussions,

presentation, activities like the green week''. B3 buttress that they ''We are working with

systems to design for deconstruction and have KPIs for reducing our volumes of mixed,

flammable and deposit waste''

CHALMERS, Civil and Environmental Engineering, Master’s Thesis BOMX02-17-90 34

4.1.3.9 Value Proposition

All of the interviewed companies have a lot of resources i.e. waste and also know how the

product or service can create value for a specific customer segment but marketing or

pricing is a challenge. However, most of them are trying to identify the customer needs and

are aware of the importance of value proposition: “If we win the project then we can sit

down with the client and then we can discuss and offer him deep green projects by

showing the clients the possibilities and benefits”. B1 further explains “It is also important

to listen to customers and what they want”. In addition, B3 claims that “value creation is

very important for construction waste management. So are the needs for new demands

that drives usage of reused- and recycling materials towards as well; construction and

demolition waste management can be foreseen as providing marketing edge toward

customers and other competitors by branding as an sustainable company and by

demands from customers connected to different sustainable certifications”. Inductively,

price is an important element of the business transaction which should be chosen

appropriately. The reason is that when customers conduct a purchase, they purchase a

'package' of benefits and the price should reflect the value of the total package which all of

the companies are trying to figure out.

CHALMERS Civil and Environmental Engineering, Master’s Thesis BOMX02-17-90 35

5 Chapter 5

5.1 Discussion

5.1.1 Waste Business Practices and Competence

The results from the previous section demonstrates that current efforts or business practices

on managing construction and demolition waste within the sector are still in the descending

order of recycling, waste to energy (WTE) and landfill with notably WTE leading the helm.

These practices contradict some of the practices and connotations most of the construction

firms claimed in their annual reports and corporate social responsibility reports. Some of

the respondent attested that legislations/regulatory bodies within the construction industry,

economic incentives, and environmental certifications as key drivers with the present

practices. Therefore, most construction firms put less emphasis on waste management

business innovative practices as claimed but in real sense spends more on meeting the

demands on sustainability and environmental standards/codes of their waste generated

instead of finding real solutions (Porter and Van der Linde, 1995). This does not depute the

fact that the construction firms does not develop new business in reducing their waste

generation and identifying waste as an added value but the result from respondent spotted

that they demand a better balance from other actors or stakeholders i.e. the municipalities,

partners, legislators, etc. This affects the relationships between the companies and other

actors that had been on armlet with a profitability mindset on the side of the external actors

(''.... the community and municipalities make a lot of money burning our waste because

we pay a lot of taxes for electricity. This is very difficult to balance''). In addition, this

imbalance or approach has an impact in the construction and demolition waste market

which is presently viewed as small or not big enough by respondent in other to drive

construction firms in developing innovative business practices on their waste. This

illustration was elucidated in the supply chain of construction and demolition waste (figure

6 & 7) where some of the companies operates on a linear waste handling instead of a

circular economy. According to EC (2015) on circular economy, the residual value of

construction and demolition waste can be maintained for as long as possible. Thereby,

minimizing the generation of waste as well as preserving virgin material. Arguably, B1 on

its construction project suggests that a circular economy which involves a collaborative

approach between stakeholders can be the key drive in boosting a more resource efficient

initiative (SEPA, 2012) as well as identifying waste as an added value (zero waste).

Therefore, if a circular economy is embraced there is an increase confidence of

construction firms developing innovative construction and demolition waste management

process as well as the trust in the quality of construction and demolition recycled materials

(EC, 2016a).

From a competence perspective, some business competence strategy has been applied by

some of the construction firms with regards to the C&D waste handling as described by

(Baker et al., 1997). For example, B1 tend to operate on distinctive competence business

strategy which has provided them a form of a competitive advantage over other

competitors. This respondent who practices 'Zero waste' sees it as a 'goodness of fit'

between their company's business strategy and the external competitive environment

(Baker et al., 1997). Therefore, this becomes a norm within the organization in developing

CHALMERS, Civil and Environmental Engineering, Master’s Thesis BOMX02-17-90 36

new competence among operatives on resource efficient approach, waste identification,

source separation and collection, improved waste logistics, quality management and

appropriate policy and framework conditions. Furthermore, distinctive competence is

constantly adjusted to the technological and organizational changes to increase the firm’s

efficiency and effectiveness (Lache, 2011). On the other hand, some of the construction

firms have been slow in developing innovative waste management competence or practices

due to the low profitability margin, lack of confidence on the quality of C&D recycled

materials, uncertainty on potential health risk for workers as well as cost of developing

these competences. This business strategy competence they operate on is the strategic

competence which focuses on balancing firms’ business models with their external

competitors. Although, respondent within these firms identified the need of developing

innovative C&D waste handling practices but their attempt were constrained by time, and

cost pressures on projects. Nevertheless, the present trend indicate that managers need to

prioritize developing innovative C&D practices in relation to other project goals in other to

build a competitive edge over other competitors. Notwithstanding, some of the construction

companies respondent attest that they continuously propose extensive initiatives on a

periodical basis in developing both individual and management groups competences

respectively. Notably, this is achieved through construction companies organizing trainings

for their employees either at their offices or at the clients offices, yet these courses are

mostly designed to teach them how to deal with waste machines and equipment. In

addition, special courses are offered to some employees who deal with C & D hazardous or

toxic materials.

Also, the result indicates the role of managerial support or commitment in promoting or

impeding operatives within the construction firms in developing innovative waste

management business competences. Teo and Loosemore (2001) outlined that the interest of

a firm in developing new practices is largely dependent on management willingness to

commit organizational resources to it. This determines the extent to which waste

management practices is integrated or embedded in the business model. For instance, the

result indicates the majority of construction companies have decided to purchase a new

system for chemicals handling for effectively managing and controlling the use of

chemicals, with the aim of reducing the environmental impact and improving the working

environment for operatives. Also, newly formed chemicals task force has developed a new

working method for chemicals handling, and training courses have been conducted

continually within some of these construction companies.

Inductively, recycling of construction and demolition waste handling tend to be the

trending phase among construction practitioners but still there are numerous challenges

which are elucidated using the business model canvas blocks in the next section.

5.1.2 Challenges in developing business innovative waste handling

From the result it can be seen that some of the construction companies encounters

numerous challenges when developing new competencies in construction waste

management. The figure below presents an overview of challenges and possible solutions

as illustrated by using the 9 blocks of business model canvas. Among the challenges

CHALMERS Civil and Environmental Engineering, Master’s Thesis BOMX02-17-90 37

outlined in the figure, 9 key challenges were identified as a core issue which hampers

construction firms innovative drive towards C&D waste management practices.

Figure 7: Challenges in developing innovative waste management practice using BMC

blocks

Note: Red - Challenges and Green - possible solutions

Financial Structure

Despite respondent claiming to have a defined financial structure on managing their waste,

the notable challenge of these construction firms was the high cost of managing their waste

especially demolition waste. The cost variables identified were cost of transportation,

treatment cost, planning cost, operational cost (sorting on site), etc. However, Osterwalder

et al. (2010) outlined the importance of financial structure in firms by illustrating that all

costs in a business model should be continuously minimized and the degree on how low the

cost structure should be minimized varies from business model to business model.

Furthermore, most of these construction companies tend to focus more on the cost-driven

business models which Osterwalder et al. (2010) explained as a perspectives of minimizing

costs as much as possible by utilizing low price value propositions, extensive outsourcing

and maximum automation for their projects but on the other hand they are affected via cost

of managing their own waste. In opposite, if the construction companies implement or

integrate a value driven business model which sees waste as value added resources this can

reduce the cost of waste management. Arguably, a value driven business model on their

waste management practices have the tendencies of delivery better quality of clean waste

fractions as well as boosting their profitability. Therefore, it is essential for construction

firms to distinguish between cost driven and value driven business model financial

structures.

CHALMERS, Civil and Environmental Engineering, Master’s Thesis BOMX02-17-90 38

Identifying Waste as Valuable Resources

Since resources fuels or make business operate accurately, it is difficult for construction

firms to identify their waste as part of their key resource due to the quality standard. Most

of the respondent expresses the difficulty of envisaging waste as a key resource because

they fail to see the potential of categorising it. This is one of the reason they prefer

outsourcing their waste in the expense of the company´s revenue to recycling which

identifies the residue value of their waste. Most of these construction companies that sells

their waste are aware of the financial potential of their waste but fails to harness the

possibility of expanding their business model toward generate revenue from their waste.

Osterwalder et al. (2010) indicated that financial, intellectual, and physical resources

respectively as categorisation of resource. Therefore, demolition waste can be a financial

resource provided the waste fraction is effectively sorted out to meet the quality of their

partners and customer. Also, construction waste can be seen as a physical resource

provided operatives on construction site are encouraged ensure clean waste fractions which

is reusable for other projects/ a possible alternate resources for certain construction project.

In addition, enhancing their competence on their waste practices can be an intellectual

resource which can provides consultancy which is a form of service offered to other firms.

Lastly, if carbon taxes on virgin construction materials are increased this would drive

innovation in making waste a resource.

Waste Stakeholders

The challenges identified by both construction firms and their waste stakeholders are lack

of trust, loyalty, transparency and strategic partners. From the construction firms

perspective, stakeholders or partners are sorted based on their competence, low price

offering, visions driven and culture in managing their waste as well as reporting their

activities. On the other hand, partners hammered on the construction firm inconsistent flow

of waste or resource (consistent waste availability), practical solutions from construction

firms and a sense of responsibility from construction firms. Since, partnership is an

essential network that makes the business model operates successfully, it is important to

build loyalty and trust for long term partnership. In achieving this, construction companies

need to reduce the amount of waste partners to ensure consistent flow of waste. In addition,

waste stakeholders involvement as well as inclusion to the construction organization is

necessary for a long-term partnership. This enhance transparency on the side of partners in

providing documentations to the construction firms on their whole waste handling

processes and possibilities in the future of financial benefits. In conclusion, collaborative

partnership is essential in enhancing waste handling business.

Key Activities

Finding a robust solution in sharing waste management knowledge and a better steering

model in changing old waste behaviors in construction firms operatives are the challenges

identified. From the result, activities within construction and demolition waste play an

important role or a key drive in changing operatives’ waste behaviors. According to

Osterwalder et al. (2010), key activities need to be categorized which can be applicable to

C&D waste generated on site. This makes the process of waste management more accurate

CHALMERS Civil and Environmental Engineering, Master’s Thesis BOMX02-17-90 39

and activities to be oriented for different purposes. So, both new built construction and

demolition activities can be categorized as production due to the fact that it entails

designing, making, and delivering of a project. Therefore, managers should be actively

involve and responsible in ensuring waste handling activities or behavior on site as a norm

or standard among operatives. Furthermore, the problem solving category are consulting

activities in finding new solutions to specific waste handling issues either in-sourcing or

outsourcing of competence. In addition, platform/network category of C&D waste handling

can be activities for continuously improvement which includes monitoring as well as

controlling activities within construction firms and partners network in ensuring that a

standardized practice is maintained. Lastly, construction firms can create further awareness

among customers on their waste management practices as well as improving their

marketing brand by creating network activities that is customer inclusive. For example,

presentation of new innovative waste practices, education and discussion sessions and

organizing waste events etc.

Waste Channeling or logistics

The challenges with waste channeling start from the excessive nature of transportation of

materials to the construction site which result in more waste generation and high cost of

transportation of the waste. Despite the improvement in waste sorting and collection centers

situated in strategic locations as claimed by recycling firms, logistics issues have been at

the top. This is because too many materials are order to the construction site but not on the

outcome which generates more waste fractions which requires more transports.

Furthermore, this illustrates that construction firms logistics focus a lot on inbound

materials (intensive distribution approach) (Kent, 1986). In addition, a lot of waste emerges

during internal transportation within the construction site by operatives. For example the

moving of gypsum plate more than three times can diminish its quality and economic value

as illustrated by a respondent.

On the other hand, if selective as well as exclusive distribution approach is utilized in

logistics of waste and material inflow respectively, present logistics issues can be reduced.

For exclusive distribution channels, fewer distribution channels with the right capacity are

recommended to supply material needed at the construction site as well as agreement to

return unused material by same suppliers. While for selective distribution approach,

specific waste (sorted waste) from construction and demolition projects can be channeled to

specific partners who identify the values of their waste thereby reducing the logistics

issues.

Waste Revenue Potential

The challenges outlined in this context are low revenue flow of waste, undervalued

products and services, and small market. These challenges identified hinder the interest of

most construction firms from developing a better business model that integrates

construction and demolition waste management as an aspect within the business for

revenue generation. In opposite, other partners (recycling firms) see construction and

demolition waste management as a successful business. However, the revenue generated

from waste by recycling firms is not fully profitable due to problems with the raw material

(mixed waste) and low products (electricity, heat, etc.) prices. The pricing mechanisms tend

CHALMERS, Civil and Environmental Engineering, Master’s Thesis BOMX02-17-90 40

to be the issue with both stakeholders (construction firms and external partners).

Notwithstanding, Osterwalder et al. (2010) expressed pricing mechanism as an important

aspect of a business model for the firms survival as well as ways to generate revenue

streams. Undermining the present low waste revenue stream, there is an opportunity for

construction companies to implement ongoing payments in form of offering consultancy as

a service which includes competence and skills in handling construction waste. In addition,

the construction companies can implement brokerage fee to generate future revenue from

waste management handling. This revenue can be generated from immediate services

performed on behalf of two or more parties. Brokerage fee can be realized through a joint

venture, two companies that collaborate where one is collecting old installation material

and another one is selling and together they form circularity (circular economy).

Notwithstanding, joint venture emphasis collaboration and neglects competitiveness.

Waste Business Relationships

The waste business relationships have a numerous of challenges e.g. money as a big

hindrance to change the mind-set about waste management both clients and contractors, to

find a better way to establish contract with stakeholders and to achieve consistency in waste

flow (waste availability). However, all indication shows that this can create further market

and these challenges can be solved if the customer approach is well communicated and

structured. The construction companies can both utilize personal promotion and impersonal

promotion when promoting waste management profitable business networks and

relationships (McDonald et al., 2013). Firstly, it can be done through presentations to

inform clients/contractors about their specific construction waste management practices.

Secondly, acculturating face to face interaction with the client/contractors/partners in

deliberating best possibilities benefits for both parties which in turn create trust and loyalty.

Also, this results in long-term create a close collaborative relationship. Thirdly, to

continuously obtain monthly reports from the waste handling conducted by the clients with

figures and numbers. Inductively, the construction company should also implement a

controlling system to follow up the key figures of the waste handling.

Waste Segmentation

The segmentation of customers with construction and demolition waste differs between

constructions firms and others actors. However, all the construction companies concur to

the fact that their waste can be segmented in to two types. These are clean and mixed waste

fractions respectively. Both of these fractions tend to be in accordance with supplying firms

as well as recycling firms that are able to fulfill the demanded criteria. Nevertheless, there

are challenges with the consistent flow of the segment, quality of waste for energy

production, and market strategy. Since, external actors or partners impact on the company

with regards to C&D waste varies, construction firms need to classify their partners and

emphasizes the most influential ones to the company. This can be a solution to the

inconsistence flow of waste stream. According to Anderson et al. (2009), classifying or

segmenting customers can be either collaborative or transactional. Collaborative customer

segmentation approach can improve strong and close social, economic, service and

technical ties which ensure flow of waste to a particular partner. Furthermore, information

sharing on how to improve the waste quality can be of value for both parties and is

CHALMERS Civil and Environmental Engineering, Master’s Thesis BOMX02-17-90 41

important. In other words, products become more customized and value adding which can

be profitable.

In addition, there are different types of market strategies (Anderson et al., 2009). Most of

the construction companies implement mass market strategy in marketing their waste

which is less profitable. This is due to the fact that their focus is solely on one large group

of partners or external actors with similar needs and problems. What market they should

implement for customer segments if considering both the construction and demolition

waste is diversified market where a construction firm with a diversified customer business

model serves two unrelated customer segments with very different needs and problems or a

multi-sided market (firms that serve a multiple of interdependent customer segments).

Multi-sided market could be the optimal pathway based on the opportunities it provides to

segment the customers both for construction and demolition waste. Furthermore, in the

multi-sided market strategy the customers that buy the waste and develop a new product

from the waste can later sell it back to the main company (circular economy). In

conclusion, possible customer segment can be developed by construction firms by offering

waste management consultation to their customers. The consultation can include providing

expert advice to other construction firms who has issues in managing their own

construction waste, sharing of innovative waste management practices and technical

knowledge etc.

5.1.3 Pros and Cons of Business Model Canvas

From the application of the concept of business model canvas in addressing construction

and demolition waste management with regards to the business model of construction firms

in this research work, there are some merits and demerits about this concept. The following

enumerates the pros of this concept.

Better visualization- The concept provides a clear, coherent and systematic

process that illustrates how the construction firms can capture and create value

from construction and demolition waste. Its simplicity in structuring and

categorizing waste activities serve as platform for visualization. In this

categorization or structuring work, the weak and strong aspects of the construction

firms’ practices and competences were highlighted via the 9 blocks. This ensures

that almost all aspect of the business model canvas components are considered

during application and can be customized or benchmarked for new innovative idea.

Initiator- Due to the capability of the concept in identifying issues that inhibit

construction firm from capturing value from their construction and demolition

waste, this concept tend to initiate an innovative drive for modification of their

business model towards a more sustainable pathway. Furthermore, the concept

challenges the construction firm to constantly progress and to become a forerunner

within the industry.

Flexibility- From this research, the flexibility aspect of this concept was identified

despite the difficulty in the initial phase of this work. This indicates the concept

capacity in adapting to different business environment in its application.

Furthermore, the flexibility of the tools and techniques in this work exposes the

CHALMERS, Civil and Environmental Engineering, Master’s Thesis BOMX02-17-90 42

unique situation explained by practitioners on their waste business incompetence.

Therefore, it was easy to locate solutions among the practitioners perspective from

the individual interviews via the business model canvas.

Common language- The business model canvas enables effective communication

through a common language between construction firms and suppliers. From the

research, it could be seen that the managers from the construction firms seek to find

a mutual understanding with the suppliers on waste management handling.

Suggestion from the application of the concept highlights the need for collaborative

and inclusive approach (indication of a common language) among stakeholders in

creating a better construction and demolition waste business. In addition, this

fosters easy adaptability of external stakeholder to the culture of a construction

firm.

Irrespective on the pros identified there were also some cons about the business model

canvas. Firstly, the business model canvas excludes the consideration of external factors

when modifying the business model towards innovation. Social and environmental aspects

as well as competitors were not considered by the concept when developing business model

that integrates waste management as an aspect of value creation to the construction firm.

Especially with the present emphasis on sustainability, the consideration of social and

environmental perspective are vital and strategic in driving a business. From the social

aspect, there was difficulties in building a trusted interactive platform (from a social

context) between construction firms and their stakeholders in addressing the issues, sharing

and providing solutions, as well as profitability of construction waste market. Notably, the

concept on interaction and relationship building focused solely on the satisfaction of the

customers instead of creating a social platform for both parties. Some of the respondent

within the construction waste sector outlined the need for a social relationship in which

respective parties could share their perspectives in order to bring stability and advancement

in the waste market. Furthermore, the environmental issues that occur from embarking on

this construction waste business was not put into consideration. Apart from transportation

cost which was highlighted, the impact especially the carbon effect was not considered. In

addition, environment issues can be really difficult to resolve especially particulates from

construction operations (e.g. dust, ashes), hazardous substances, etc which was commented

by most respondent. This requires a business model mindful of sustainable solutions in

improving current construction waste market in order to preserve the environment.

Notwithstanding, the nine blocks are not defined with the same level of accurate detailed

information. A couple of blocks indicate a higher level of accurate detailed information

than other blocks. It also means that users have to think at different levels of detail when

filling or adapting to the canvas. This makes the business model canvas imbalanced. Lastly,

the concept can be improved if computer based software can be developed to enable easy

usage and accessibility of the concept by personnel in construction firms (instead of a

paper-based concept).

CHALMERS Civil and Environmental Engineering, Master’s Thesis BOMX02-17-90 43

6 Conclusion

The aim of this research work is to investigate and identify business perspective in

promoting sustainable construction and demolition waste management within construction

sector. Furthermore, identifying hindrances that halt construction firm from developing

new business, apply the business model canvas to analyze construction waste management

in today's situation and the market potentials of construction waste management was

studied. From the research, the following can be concluded. Firstly, current business

practices on managing construction and demolition waste within the sector are still in the

descending order of recycling, waste to energy (WTE) and landfill with notably WTE

leading the helm. Further analysis indicate that 43% of the 30 construction companies

utilize waste management practices in forms of recycling, waste to energy and landfill.

These practices are attested to legislations/regulatory bodies within the construction

industry, economic incentives, and environmental certifications as key drivers which make

construction firms put less emphasis on waste management business innovative practices

but prefer meeting the demands on sustainability and environmental standards/codes of

their waste generated instead of finding real business solutions.

Furthermore, construction waste practitioners strives to develop new business in reducing

their waste generation and identify waste as an added value but they demand a better

balance from other actors or stakeholders i.e. the municipalities, partners, legislators, etc.

This imbalance has an impact in the construction and demolition waste market which is

presently viewed as small or not big enough in other to drive construction firms in

developing innovative business practices on their waste. Therefore, if a circular economy is

embraced there is an increase confidence of construction firms developing innovative

construction and demolition waste management process as well as the trust in the quality of

construction and demolition recycled materials.

From a competence perspective, distinctive business competence strategy seems to be

successful approach in developing innovative practices towards green construction waste

management. Due to the competitive advantage over other competitors it creates as well as

its constant adjustment to the technological and organizational changes to increase the

firm’s efficiency and effectiveness. On the other hand, some of the construction waste

management practitioners have been slow in developing innovative waste management

competence or practices due to the low profitability margin, lack of confidence on the

quality of C&D recycled materials, uncertainty on potential health risk for workers as well

as cost of developing these competences. This business strategy competence they operate

on is the strategic competence which focuses on balancing firms’ business models with

their external competitors.

Also, numerous challenges were identified from the application of business model canvas

analysis on the practitioners construction waste practices as well as competence. The

following key challenges are regarded as core issue which hampers construction firms’

innovative drive towards C&D waste management practices. These include: high cost of

managing waste especially demolition waste; difficulty for construction firms in envisaging

waste as a key resource due to the quality standard; lack of trust, loyalty, transparency and

strategic partnership among waste stakeholders; finding a robust solution in sharing waste

management knowledge and a better steering model in changing old waste behaviors in

CHALMERS, Civil and Environmental Engineering, Master’s Thesis BOMX02-17-90 44

construction firms operatives; excessive nature of transportation of materials to the

construction site and high cost of transportation of the waste; low revenue flow of waste,

undervalued products and services, and small market; money value as a big hindrance to

change the mind-set; and inconsistent flow of waste, quality of waste for energy

production, and market strategy.

Lastly, business innovative model seems to provide a platform for continuously

improvement of construction waste management based on better visualization of the

construction firms business model, flexibility, value capturing and common language.

However, external factors such as social and environmental aspect are not considered by

the concept. The concept can further be improved if computer based software can be

developed to enable easy usage and accessibility of the concept.

CHALMERS Civil and Environmental Engineering, Master’s Thesis BOMX02-17-90 45

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CHALMERS Civil and Environmental Engineering, Master’s Thesis BOMX02-17-90 49

Appendix

A. Interview Questions:

Generic questions

1. Their role/position What is the person task/ role in the company and how long

she/he has been here.

2. Experience with CDW

3. What are the services they offer to their clients regarding waste management

4. Who are their clients (B2B or private person) for which sectors

5. How long they have been active doing so

6. What have been the late development for this department

7. Does this company see waste management as a business or as a service to their

existing customer?

8. What are the benefits of this business, what are the challenges

9. CDW processes different for new houses, renovation or demolition? Please explain?

10. Strategic focus on CDW – where is this taken up in the company? Any company

strategy? Policy? – related to SBI or company strategy?

Skills development/competencies of key groups:

1. What are the tasks performed by our organization, who, what and what role and

responsibilities

2. Standardized within the industry? Company? Who sets this up?

3. How do you quality check the process? Certification possibly? How do they do

this?

4. Do they need new skills development in their firm /industry (and on what level)

5. What are the challenges in developing new competences towards construction waste

management?

6. Training for the new skills

7. New areas that would be of interest to develop within your firm (e.g., geo, different

aspects of CDW). What are the challenges that hinder construction firms from

managing their own waste? This one

8. Do you outsource or handle your waste in-house? What are the pros and cons with

each approach?

Business opportunity

What are the major drives in engaging in waste management practice?

How important is sustainability and the new demands regarding energy saving for their

bussiness

How is waste management integrated in your business model and how was this

realized?

What are the challenges in creating or developing your business model with regards to

the construction waste management?

CHALMERS, Civil and Environmental Engineering, Master’s Thesis BOMX02-17-90 50

How do employees, business partners, customers and top managers respond to the

question above?

Does your company perceive construction waste management as a form of value

creation?

Can construction and demolition waste management be foreseen as providing

marketing edge toward customers and other competitors?

How does your company deal with new conditions/ regulations/standards/ legislations

with regards to waste management from both the EU & Swedish environmental

protection agency?

Who are your main competitors

How do you see the future development of CDW?

New business potential

B. List of Companies for Screening

Plats 2015 (2014) - Företag - Nettoomsättning i Sverige, Mkr - Anställda i Sverige.

1 (1) Peab 36 780 - 11 036

2 (2) Skanska 34 124 - 10 300

3 (3) NCC 32 104 - 9 718

4 (4) JM 10 880 - 1 919

5 (6) Veidekke Sverige7 121 - 1 378 (inklusive Arcona)

6 (5) SVEVIA 6 961 - 1 868

7 (7) INFRANORD 3 947 - 1 891

8 (12) SERNEKE GROUP 3 107 - 618

9 (8) Strukton Rail 2 531 - 859

10 (10) Erlandsson Bygg 2 529 - 771

11 (13) Wäst-Bygg 1 873 - 187

12 (16) IKANO 1 729 - 162

13 (15) MVB 1 634 - 477

14 (19) HSB Produktion 1 602 - 52

15 (14) Infratek 1 495 - 571

16 (18) SVEB Anläggning 1 407 - 290

17 (26) Besqab 1 388 - 79

18 (20) John Svensson 1 330 - 253

19 (17) Tuve Bygg AB 1 204 - 158

20 (23) Åhlin & Ekeroth 1 200 - 511

21 (11) Strabag 1 057 - 171

22 (21) Bygg Partner i Dalarna AB - 1 047 299

23 (ny) Byggmästar'n i Skåne AB - 993 217

24 (25) Thage i Skåne 975 - 331

25 (ny) Derome Hus AB 953 - 48

26 (ny) RekabEntreprenad952 - 214

27 (9) Lemminkäinen 912 - 136

28 (22) Einar Mattsson 893 - 253

29 (28) Sh Bygg Sten och Anläggning AB 892 - 276

30 (ny) In3prenör 852 - 71

CHALMERS Civil and Environmental Engineering, Master’s Thesis BOMX02-17-90 51

C. Screening Computation

Companies & Categories Waste Management Practices Construction Waste Demolition/renovation waste Innovative practices

Peab YES YES NO YES

Skanska YES YES YES YES

NCC YES YES NO YES

JM YES YES NO NO

Veidekke Sverige YES YES NO YES

SVEVIA YES YES NO NO

INFRANORD YES YES NO NO

SERNEKE GROUP YES YES NO NO

Strukton Rail YES YES NO YES

Erlandsson Bygg YES YES NO NO

Wäst-Bygg YES YES NO NO

IKANO YES YES NO NO

MVB YES YES NO NO

HSB Produktion YES YES NO NO

Infratek YES YES NO NO

SVEB Anläggning YES YES NO NO

Besqab YES YES NO NO

John Svensson YES YES NO NO

Tuve Bygg AB YES YES NO NO

Åhlin & Ekeroth YES YES NO NO

Strabag YES YES NO YES

Bygg Partner i Dalarna AB NO NO NO NO

Byggmästar'n i Skåne AB NO NO NO NO

Thage i Skåne YES YES YES NO

Derome Hus AB YES YES NO NO

RekabEntreprenad NO NO NO NO

Lemminkäinen YES YES NO NO

Einar Mattsson NO NO NO NO

Sh Bygg Sten och

Anläggning AB YES YES NO NO

In3prenör NO NO NO NO

Percentage categorisation for the 30 firms

Waste management practices 80

Construction waste handling 80

Demolition waste handling 7

Innovative practices 19

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