Circular prequalification and bidding practices at contractor firms

Developing new prequalification and bidding practices are paramount to the implementation of circular refurbishment and new building projects. Understanding tendering practices is essential as prequalification and bidding represent the two most important competitive parameters for contractor firms. However, little is known about the actual prequalification practices and bidding practices at contractor firms due to the sensitivity and confidentiality of the subject.The purpose of this paper is to investigate how practices of prequalification and bidding in contractor firms may support or hinder a circular transformation of refurbishment and new building. Further, this paper will discuss how clients' procurement practices shape the contractor firm’s possibilities for a circular transition.The study applies activity theory as the theoretical grounding. It is based on an integrative literature review that will review, critically appraise, and synthesise representative literature in an integrated way to generate new frameworks and perspectives on the research question.The study points at two main findings, which demonstrates the barriers and levers for a circular transition of contractor firms. The two main findings are related to 1) intra-organisational prequalification and bidding practices with regard to the activity system of contractors, and 2) inter-organisational procurement practices with regard to the activity system of clients. First, the intra-organisational barriers show that contractor firms' bidding processes are highly controlled by tradition-bound practices. Moreover, contractor firms have a strong focus on the short-term goal of winning the subsequent construction project combined with complex supply chains. Second, the inter-organisational barriers include the building clients' low-risk willingness in terms of setting innovative requirements and a knowledge gap regarding the suppliers' innovation potential.In conclusion, this paper will generate new insights on prequalification and bidding practices for both researchers and practitioners into the possibilities and obstacles for renewing the building industry and transforming it towards a circular future.