Reflecting on New Business Models in Construction Aiming at Re-Use of Materials and Components’

Mieke Oostra, Michael Sailer

    Research output: Contribution to conferencePaperAcademic


    In order to achieve more impact and efficiency on the route towards a circular economy, new business models are introduced in the value chain of construction. It is suggested that lease and performance contracts will stimulate producers to improve quality and lifetime of building products, thereby ameliorating use and reuse of products and their materials. This, since these companies know the origin and composition of the materials, and the history of use and service of the products. The advantages seem to be obvious: the user only pays for use and performance of the product e.g. light, energy, vertical transport or protection against water and wind. The producers remain the owners of products and resources, and have the possibility to reuse and recycle materials and products in an efficient manner. This requires that they provide service during the lifetime of the products, and have the obligation to take care of the perfor- mance of their products over a certain period of time.
    In the Netherlands these circular business models (CBMs) are already implemented at a small scale. The introduction of these models raises some fundamental questions however, which, ideally, need to be addressed before such models are implemented at a larger scale. The aim of this paper is on the one hand to describe some of these business models, and on the other hand to reflect on some fundamental questions that can be raised in relation to a shift of ownership of materials. What may be the consequences of this shift of ownership? What are the risks of agglomeration of building materials by larger companies? Among other things such a shift could potentially influence the diversity and flexibility of choice available for tenants and building owners. It may also limit future possibilities of SME’s in the supply chain of construction. Are there ways to minimize some of these risks if we decide to implement these business models at a large scale?
    Original languageEnglish
    Publication statusPublished - 16 Nov 2017
    EventSustainable Housing LAB Conference 2017 - Porto, Portugal
    Duration: 15 Dec 201617 Dec 2016


    ConferenceSustainable Housing LAB Conference 2017
    Internet address


    • circular business models
    • construction industry
    • Alueco
    • Madaster
    • CIRCL
    • M-use


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