Construction sector
Construction sector

Construction sector

Why is Open SPP important in the construction sector?

The construction industry is one of high economic relevance, as it is estimated to account for 6% of global GDP, with Africa's construction market valued at around USD 5.4 billion in 2020 and LAC’s at USD 829.3 billion in 2018. This translates into more than 100 million jobs worldwide. However, this sector also accounted for the largest share of both global final energy use (36%) and energy-related CO2 emissions (39%) in 2018. It is also classified as one of the sectors with the highest share of corruption, as well as a high-risk sector for forced labor.

As the method by which many construction projects are delivered, public procurement constitutes an opportunity to include sustainable and open practices that can contribute to minimise and better the economic, social and environmental impacts of this sector.

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It is important to note that within the construction sector, there are different built asset types, including residential and commercial buildings, economic infrastructure (e.g. transport) and social infrastructure (e.g. education). Projects related to each of these asset types are normally divided into four stages: Design, Construction, In-Use and Deconstruction. As well as representing the lifecycle of a construction project, these stages can also represent different types of construction procurement processes, depending on the contract signed. In most cases, Design and Construction are procured together (Design and Build contracts), with the inclusion, sometimes, of the In-Use stage (Design-Build-Operate contracts). This section does not go into detail on the different types of construction projects.

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