Scaling the implementation of circular economy requirements in public procurement for construction projects

The construction sector in Europe, which constitutes about 10 of the gross domestic product (GDP) and uses approximately 2.5 of the total workforce (Eurostat, 2023), is a significant contributor to greenhouse gas emissions, resource depletion and waste generation (UNEP, 2022). Transition to the circular economy (CE) is considered by many to be the recipe for reducing these environmental burdens. Attention to CE concepts, which aim to slow, narrow and close material loops through strategies like reducing, reusing, refurbishing and recycling, has increased significantly in recent years (Kirchherr et al., 2023). This attention has been supported by concerns and political interest in the environmental issues caused by the construction sector. However, despite the growing attention, large-scale implementation of CE within the construction sector remains limited (Eberhardt et al., 2022), especially in public procurement (PP), where processes are often dominated by cost considerations and short-term efficiency rather than long-term sustainability.

By way of an illustration, Sweden has set an ambitious target of reaching net-zero greenhouse gas emissions by 2045 (Naturvårdsverket, 2024) and is among a number of countries actively working to integrate CE principles into PP practices (Hunka et al., 2023). PP is often seen as a tool to secure equal rights and access to the market for interested parties (European Commission, 2025a). Nevertheless, as highlighted by Lenderink et al. (2022), PP has the potential to stimulate innovation, drive performance improvements and address complex societal challenges. Moreover, by introducing circular principles, public authorities can steer sustainable practices across the construction sector, aligning with broader environmental and economic objectives (Bosch and van Oppen, 2020; van Oppen and Bosch, 2021). Increasing circularity requirements in PP processes will encourage the prioritisation of circular initiatives among relevant actors (Nikolaou et al., 2022).

Despite several policy-level ambitions and guidance documents (Hunka et al., 2023; Nikolaou et al., 2022), tangible examples of circular public procurement (CPP) in the construction sector remain scarce, particularly at the municipal level. Yet, the practical translation of CE principles into procurement processes still presents multiple challenges, ranging from limited awareness among public authorities (Gerhardsson et al., 2020; Hart et al., 2019), concerns over higher costs (Sönnichsen and Clement, 2020) and supply chain complexities (Eberhardt et al., 2019).

The study reported here aims to explore potential solutions to these challenges by investigating how circularity is currently being implemented in PP for construction projects in Sweden. Focusing on the municipal level, this qualitative study is based on a case study and semi-structured interviews with relevant actors from some of the country’s largest municipalities. The purpose is to understand the challenges and inform policy and decision-making about useful strategies to overcome these barriers, which might ultimately facilitate the adoption of CE practices in the PP of construction projects. This could lead to more sustainable and efficient construction practices, contributing to Sweden’s environmental goals and serving as a model for other countries.

While CE concepts have been widely discussed, their practical application in PP within the construction sector remains underexplored. The majority of the literature dedicated to CE implementation in the PP of construction projects is produced by governmental bodies and non governative organisations (Kalmykova et al., 2018; Sönnichsen and Clement, 2020), leaving a gap in empirical evidence about how municipal authorities implement circular principles in construction projects. Thus, this paper addresses this gap and represents the first study to explicitly focus on CPP in construction. By identifying actionable strategies, the paper offers novel empirical insights that can inform policy, guide public authorities and potentially serve as a model for other countries seeking to integrate circularity into construction procurement processes.

The remaining sections of this paper are structured as follows. Section 2 presents the legal framework related to PP, what it means to implement CE in the construction sector and what the challenges to CPP are as a theoretical background. Section 3 explains the steps followed to collect, select and analyse the data. Then, Section 4 explores approaches and solutions for integrating circularity into procurement. Finally, in Section 5, the main findings from this study are summarised, with their theoretical and practical contributions. Limitations are discussed and future studies are suggested.

PP represents a substantial share of the European Union’s (EU) economy, accounting for approximately 15 of GDP (European Commission, 2025b). Beyond its economic role, PP functions as a strategic policy instrument to promote sustainability across sectors (Alhola et al., 2019). Over time, various procurement approaches have evolved to embed environmental, social and economic considerations into purchasing decisions.

Green public procurement (GPP) is an established model within this context (Hunka et al., 2023). Essentially, GPP is a demand-driven policy tool aimed at promoting environmentally friendly goods and services by integrating ecological criteria into procurement processes (Ograh et al., 2023). It prioritises the purchasing of products and services with lower environmental impacts throughout their life cycles, contributing to the broader EU objectives on sustainable development and eco-innovation (Galán-Valdivieso et al., 2024). For instance, GPP typically involves specifying requirements such as energy efficiency, emissions reduction or the use of recyclable materials (Kristensen et al., 2021).

Building upon GPP, sustainable public procurement (SPP) introduces a more holistic framework by taking into account social and economic dimensions (Alhola et al., 2019). The SPP seeks a balanced integration of all three sustainability pillars into procurement practices (van Berkel and Schotanus, 2021). This approach also includes the promotion of fair labour conditions and corporate social responsibility, thus broadening the sustainability mandate beyond purely environmental outcomes (Kristensen et al., 2021).

Importantly, while both GPP and SPP contribute to more sustainable production and consumption, they do not automatically lead to circular outcomes (Alhola et al., 2019). As shown by Alhola et al. (2019), GPP and SPP criteria might include requirements related to durability, reparability, recycled content, recyclability or non-toxic material cycles; however, these criteria are often applied within a linear product life-cycle logic. This means that they rarely target systemic circularity such as life extension, value retention or long-term resource loops. In response, the concept of CPP has gained increasing attention as a means of embedding CE principles more explicitly into purchasing practices. CPP moves beyond the primary focus of purchasing products to enabling value retention, extended life spans and safe and efficient cycling of materials, often by supporting circular business models and networks (Alhola et al., 2019). It emphasises loop-closing strategies such as reuse, refurbishment and recycling (European Commission, 2017). This model thus reorients procurement from linear purchasing towards procuring functions, services or systems that operate within circular loops (Table 1). Summarises the main strategies for embedding CE principles into procurement processes identified in the literature. These strategies clarify how CE can be operationalised in procurement, going beyond the scope of GPP and SPP.

However, implementation remains limited, as institutional understanding and policy support for CPP are still developing (Hunka et al., 2023). Though some pilot initiatives have incorporated circularity into PP (Kristensen et al., 2021), practical applications remain rare, particularly in the construction sector. As a result, most materials are still discarded after a product’s short lifespan, with procurement teams often favouring virgin resources over the reuse of reclaimed materials to meet the needs of the prevailing linear economy (Qazi and Apolloni, 2022).

In Sweden, the legal framework for PP is tied closely to the EU Directive on PP (Directive 2014 / 24/EU), which focuses on the award of public contracts and is rooted in EU Internal Market rules and principles outlined in the Treaty on the Functioning of the EU (EU Directive, 2014). These principles include equal treatment, non-discrimination, mutual recognition, proportionality and transparency. The implementation of this directive in Sweden is achieved through national legislation known as the Public Procurement Act (referred to as LOU, the abbreviation of its Swedish name), which, in special circumstances, mandates courts and administration to consider EU law in their interpretation (Sveriges Riksdag, 2023). The LOU establishes two key evaluation stages: candidate evaluation during the selection stage and tender evaluation during the tender stage (Konkurrensverket, 2016). While authorities have discretion in determining contract award criteria, they must align with principles of transparency, non-discrimination and equal treatment to ensure fair competition. According to LOU Chapter 16 Section 1,

This means that contracts are awarded on the basis of the “most economically advantageous” tender from the authority’s perspective, which might involve assessing the best price-quality ratio.

For construction works, Sweden lacks specific statutory legislation, relying instead on AB 04 for performance (i.e. service) contracts and ABT 06 for design and construction contracts (Boverket, 2023). These general conditions are widely accepted among Swedish contractors and contracting authorities but are often amended in the administrative regulations (Hane, 2015). Despite the prominence of environmental criteria in EU directives, terms like circularity and reuse are not explicitly mentioned in the LOU, reflecting historical emphasis on linear material flows. However, Sweden’s legal framework for circular procurement is significantly influenced by the integration of environmental criteria throughout a product’s life cycle, as mandated by Directive 2014 / 24/EU (Alhola et al., 2019). In particular, both the Planning and Building Act and the Swedish Environmental Code stipulate resource management, reuse and sustainability (Sveriges riksdag, 2010, 1998). While these laws do not explicitly mention circularity or its application in preparatory works, they establish foundational principles that support greater circularity in the construction sector through enhanced resource management and waste reduction (Boverket, 2024).

Implementing CE in the construction sector requires, firstly, a conceptual clarity to explain the different levels at which circularity operates. In the literature, different concepts can be distinguished: circular principles (Ellen MacArthur Foundation, 2024), circular targets (Morseletto, 2020), circular strategies (Eberhardt et al., 2022) and circular practices (Gerding et al., 2021), each contributing differently to the transition from linear to circular construction. These concepts are often used interchangeably, creating confusion among practitioners and possible inconsistency in empirical analysis. To avoid this ambiguity, we adopt a structured distinction in which principles express the underlying values of circularity, targets specify measurable ambitions, strategies show how these targets will be met and practices represent the concrete actions carried out in projects.

Building on this clarification, CE in construction can be understood as the application of circular principles to the design, construction, operation and deconstruction of buildings, with the aim of minimising resource depletion, pollution and ecosystem damage (Pomponi and Moncaster, 2017; van Oppen and Bosch, 2021). To translate these principles into targets, organisations often focus on reducing embedded carbon, increasing the use of bio-based or recycled materials, designing for disassembly and extending the lifespan of buildings through adaptability and maintenance (BUILD UP Team, 2024). Reaching such targets requires appropriate strategies, including life cycle approaches, optimising building longevity and integrating material reuse at all stages (Benachio et al., 2020; Leising et al., 2018). CE implementation also increasingly relies on digitalisation and data management, which enable better material tracking, decision-making and evaluation of circular performance (BUILD UP Team, 2024). These strategies materialise through day-to-day practices such as design choices that extend the building’s lifetime, repair and maintenance during use, reuse, sharing and repurposing of buildings, renovation and refurbishment, deconstruction for material reuse and remanufacturing and recycling of building materials (Janson et al., 2022). However, implementing these practices remains complex since they operate across different levels, such as building, component and material, as well as energy resources (Gasparri et al., 2023).

The transition from high-level principles and targets to the concrete practices applied in projects is strongly dependent on procurement processes. Procurement can either reinforce linear approaches or act as a key enabler that translates circular strategies into contractual requirements (Hart et al., 2019). Bougrain (2020), for example, suggests that public purchasers could follow a performance-based procurement to promote circular strategies like deconstruction and material reuse. Similarly, Alhola et al. (2019) identify four main circular procurement approaches, noting that while the construction sector is open to procuring circular products and technologies, it is less inclined to integrate circular business models into tenders.

To support this shift, several guidelines propose step-by-step methods for operationalising circularity in procurement. For instance, van Oppen et al. (2018) elaborated an eight-step guideline for Dutch authorities ranging from setting circular ambitions (principles and targets) to managing circular contracts (strategies and practices), addressing internal organisation and alignment, formulation of requirements, collaboration, tendering procedure and the assessment and safeguarding of circular performance. Similar approaches are proposed by ProCirc (2023) and Bougrain (2020). The latter highlights the need to begin with reclamation assessment, engage early with the market, carrying out tender procedures and, ultimately, selecting the preferred bidder (Bougrain, 2020).

The challenges of integrating CE requirements into PP are multifaceted and necessitate addressing various key themes. As proposed by Qazi and Appolloni (2022), these challenges can be viewed through a triple-level lens: micro (organisational), meso (supply chain) and macro (institutional). Each level not only presents unique barriers but also interacts with the others, creating feedback loops that reinforce existing practices and resistance to change.

At the micro level, public authorities often face internal barriers such as limited time, resources and knowledge to incorporate CE principles into procurement processes (Alhola et al., 2019; Grimbert and Zabala-Iturriagagoitia, 2024). Circular considerations are frequently underestimated during procurement stages: from material specifications to sourcing strategies and cost assessments (Qazi and Appolloni, 2022). Hjaltadóttir and Hild (2021) add that reverse logistics infrastructure is often insufficient, and top management might fail to provide strategic direction, reinforcing a culture that prioritises cost over long-term sustainability. Inadequate training and weak institutionalisation of circular practices further hinder adoption (Grimbert and Zabala-Iturriagagoitia, 2024).

At the meso level, involving supply chain dynamics, CPP is constrained by fragmented communication among contractors, suppliers and other stakeholders (Qazi and Appolloni, 2022). According to Benachio et al. (2020), the reuse market is still immature, limiting the availability and traceability of second-hand materials. Additionally, the absence of shared platforms or standards for assessing circular materials complicates quality assurance and tender evaluations (Lindeberg and Ryding, 2020). Limited collaboration with market actors further reduces the innovation potential and reinforces conservative procurement strategies (Grimbert and Zabala-Iturriagagoitia, 2024).

At the macro level, regulatory and institutional conditions present further obstacles. Although CE is broadly supported by policy, unclear or conflicting legal frameworks, such as the classification of reused materials as waste, create uncertainty and legal risk (Hart et al., 2019). Public procurers often lack clear guidance on how to formulate CE criteria within tenders (Hunka et al., 2023) and so rigid political decisions might restrict the flexibility needed to experiment with circular solutions. These conditions discourage proactive efforts to implement CPP, especially where legal or financial risks are perceived as high (Grimbert and Zabala-Iturriagagoitia, 2024).

This research adopts a critical realist perspective, following Bhaskar’s (2009) framework, which acknowledges a subjective reality grounded in an objective underlying structure. Within this perspective, the study examines the complex nature of integrating circular requirements in PP for construction projects. The three levels of critical realism in this case are represented by the underlying mechanisms of objective regulations and policies on the CE, which give rise to their use in PP as events of possible CE integration in construction. These, in turn, give rise to individual experiences of either adopting or resisting this implementation.

To explore these dynamics, this qualitative study is based on semi-structured interviews with relevant actors and a case study. To reinforce the reliability and credibility of the results, an abductive approach is used, allowing iterative refinement of insights based on empirical observations and theoretical reflection. The interviews investigate the level of integration of CE strategies in PP and explore strategies and interventions which might help overcome regulatory challenges. The case study provides triangulation for the identified practices and approaches currently implemented.

To select the relevant actors to include in this study, the authors referred to the list of the ten biggest municipalities obtained from official sources (SCB, 2022). Initially, a request to participate in the study was sent via email to the procurement departments of Stockholm, Göteborg, Malmö, Uppsala, Linköping, Västerås, Örebro, Helsingborg, Jönköping and Norrköping municipalities. Of those municipalities contacted, Stockholm, Göteborg, Malmö, Linköping and Helsingborg redirected us to their external municipality company and Västerås declined the invitation. After a snowballing approach and several email exchanges between the authors and the procurement offices, the most suitable person to participate in the interviews was identified for each municipality. Additionally, for a more exhaustive understanding of the implementation of circular requirements in PP for construction projects, all municipal housing and real estate companies, as well as environmental agencies in each of the municipalities selected, were invited to participate in the study. To encourage the participation of the municipalities and their companies, the overall structure of the interview was often shared in advance. It was made clear that previous experience with circular procurement or with circular projects was not necessary. Nonetheless, the lack of experience together with a lack of time were the main reasons for declining the invitation to participate in this study.

The semi-structured interview design included topics such as the municipality’s general understanding and approach to CPP, the impact of policy and regulation, the kind of collaboration and stakeholder engagement, measurement and evaluation of the circular practices implemented in projects and expectations for the future. Success stories were also topics touched on during the interviews. In total, 10 interviews were conducted with 12 respondents via Microsoft Teams, Zoom or telephone, depending on the respondent’s preference. The interviews varied in duration, ranging from 35 to 75 min. The procurement office of Norrköping, as well as the housing companies of Stockholm, Helsingborg and Örebro, preferred sending written answers from seven of their employees in total. Table 2 presents the list of experts interviewed for each municipality and for the case study. The classification of the municipalities is based on the framework outlined by Hunka et al. (2023) to distinguish the level of CPP adoption. This framework highlights three levels of municipal uptake – beginners, intermediate and promoters – and is based on common patterns retrieved in the interviews.

To ensure the accuracy of the data, all interviews were recorded after receiving permission from the respondents, transcribed using the Teams integrated transcription tool and Good Tape and then reviewed manually. Some of the interviewees requested sight of the transcripts of their interviews before they were used for the analysis.

In addition to the interviews, a case study design was used to gain a deeper understanding of how CE requirements are applied in real PP processes. Case studies are particularly useful for examining complex phenomena within their real-world context (Yin, 2014). In this study, the case provided an empirical lens for analysing how circular strategies and practices discussed by practitioners were translated into procurement documents, decisions and project practices. This offered contextual detail and processual insight that interview data alone could not offer.

The case was selected according to three criteria.

1. The project had to be procured by public authorities.

2. Circular strategies such as reuse of building materials, adaptive reuse or deconstruction of the building had to be implemented in the project.

3. Circular strategies had to have been implemented in the initial stages and thus inserted in the procurement documents, not added later.

Proximity to the authors was an additional practical criterion.

The selected case was offered by Lomma municipality, a medium-sized municipality in the south of Sweden and focused on a public construction project that incorporated several circular strategies from the outset, including reuse of materials, design for adaptability, recycled-content products and demountable construction elements.

The data collection included a 90-min semi-structured interview with the project manager and a representative of the procurement office, as well as an analysis of documents such as procurement documentation, award decisions and award protocols.

Project description: The project involves the development of a new municipal building and upper secondary school on an existing urban site, integrating circular practices such as selective material reuse, recycling of components and the demolition of outdated structures. Material recovery is handled through a dedicated side contract, emphasising resource efficiency.

The scope covers detailed design, demolition and new construction, with functional spaces distributed across several interconnected building volumes, including dining areas, libraries and circulation spaces for both institutions (see Figure 1). The design also includes specialised rooms such as laboratories, archives and administrative spaces, supported by general and process-specific mechanical systems.

The ground floor is designed to be elevated to +4 meters above sea level to mitigate potential flood risk. Infrastructure upgrades include relocation of wastewater and stormwater pipes, an electrical substation and improvements to surrounding external areas, including accessible parking and landscaping.

An existing on-site building is planned to be temporarily available to the contractor and demolished after project completion. Additionally, the reconstruction of a nearby roundabout is planned to support future site access.

The analysis involved two main kinds of data: the documents from the case study and the interviews. For the former, documents such as procurement documentation, award decisions and award protocols were examined through a systematic revision of digital documentation, following the recommendation of Bowen (2009).

According to Braun and Clarke (2006), thematic analysis offers a flexible tool that can yield a rich, detailed, but complex understanding of the data. For this reason, thematic analysis was considered the most appropriate to use in this context. In particular, the thematic analysis followed an abductive logic, moving iteratively between the empirical material and theoretical concepts. Initial codes were generated inductively from the data, with attention to “fracturing” the information into meaningful units (Maxwell, 2008), including interviewees’ practical experience, the importance they attributed to various topics and the level of CE integration at the municipal level. These codes were then organised into categories to facilitate comparison both within and between categories, allowing for a deeper understanding of patterns and relationships in the data (Ryan and Bernard, 2003). Emerging themes were then compared with CPP literature, providing a theoretical lens for interpretation. This iterative comparison guided a second refinement of codes and themes, ensuring that the analysis captured both the emic perspectives of interviewees and broader theoretical insights.

At the end of this process, all the respondents received a summary of the results. The interview responses were analysed and coded considering factors such as the interviewees’ practical experience, the importance they attributed to various topics and the level of CE integration at the municipal level.

While referring to CPP for construction might still seem premature, the interview study revealed that municipalities, regardless of their level of implementation of circular requirements, are focusing on reducing their environmental impact and consider CE as a way to achieve targets related to climate change.

Similar to the findings of Hunka et al. (2023), this study underscores the different levels of circular requirements’ adoption in the PP processes according to the level of definition of sustainable and circular goals. The municipalities of Stockholm, Göteborg, Malmö and Helsingborg, which exhibit strong political support and foster an environment stimulating creativity in achieving such goals, are considered promoters of circularity. A key factor in their leadership is the presence of ambitious and clearly defined targets. While political priorities can shift in any politically governed organisation, municipalities with stable leadership and a strong commitment to sustainability tend to maintain a consistent focus on implementation. Conversely, municipalities where political interest in circularity exists but specific objectives have not been clearly defined are classified as beginners, as the lack of concrete directions can slow down the integration of circular principles into procurement practices. For these municipalities, the shift to CE is often driven by external agents or events (Hunka et al., 2023).

Although the literature shows that there are still many challenges to face in transitioning towards the CE, there are also many attempts to overcome the barriers. Both interviews and the case study provide practical examples of these attempts. The following sections present the strategies and approaches considered useful in overcoming them. To note, the interview findings and the Lomma case study reinforce each other in several respects. While interviews highlight organisational ambition, legal uncertainty and dependence on individual initiative, the case study illustrates how these dynamics materialise in concrete procurement decisions. The combined findings, therefore, strengthen the argument that CPP is less constrained by legal barriers than by organisational alignment and market readiness.

This section explores the strategies and practical measures that have emerged in response to the elevated number of challenges. With material reuse gaining momentum, efforts now focus on addressing legal uncertainties, improving coordination and enhancing institutional support. A balanced approach integrating regulatory compliance, innovation and collaboration is essential for PP to drive circularity (Lindeberg and Ryding, 2020).

Circular procurement involves purchasing products or services aligned with CE principles and supported by practices such as designing, reusing and recycling products to maximise value during their life cycle (UNEP, 2022). van Oppen et al. (2018) emphasise the importance of defining organisational ambitions before initiating PP. Aligning procurement goals with existing policies and communicating them clearly to stakeholders can help overcome uncertainties and inconsistencies in implementation (Grimbert and Zabala-Iturriagagoitia, 2024).

Although during the interviews, a general definition of CPP was provided, the interviewees used GPP or CPP interchangeably every time they referred to the integration of circular requirements in procurement. Nonetheless, the interviewees were aware of the crucial role of their procurement in achieving sustainability goals, with I2 adding that they have reuse mandated in every project.

One of the most significant barriers to CPP is the lack of understanding of circularity in procurement (Hart et al., 2019). All the municipalities are taking steps to achieve climate neutrality and, in doing so, are facing questions about engaging in circular construction, defining its principles and measuring long-term sustainability and progress (I17). Analysis of the results showed that none of the municipalities have fully integrated CPP into their activities, indicating that the transition is still ongoing. The absence of a unified definition of CPP contributes to this challenge, as illustrated by I17’s reflection:

To address this knowledge and awareness gap, setting well-defined circular targets and organisational ambitions before initiating PP is crucial (van Oppen et al., 2018). Aligning procurement goals with existing policies and communicating them clearly to stakeholders can help overcome uncertainties and inconsistencies in implementation. As some respondents pointed out, it is crucial in this stage to establish priorities and circular strategies in advance to facilitate project management and streamline the tender evaluation process. I17, for instance, explains how a solid foundation for PP has been laid in Malmö and that efforts are now being directed towards ensuring that employees act in alignment with the goals. This highlights, once again, the importance of not only setting ambitious targets but also translating them into implementable actions within the organisation.

Legislative consideration, EU directives, local regulations and supplier capabilities are vital in determining procurement criteria. Beginner municipalities might benefit from stricter regulations and policies that promote broader acceptance of circular requirements implementation in procurement practices (I3). Furthermore, there is a need for both strategic approaches and common framework agreements for certain services related to circular construction, such as a digital platform for building reuse. For municipalities at an intermediate stage, the goal could be to gradually introduce requirements that push the local industry towards greater sustainability and innovation – a view that was supported by I4.

Ensuring that everyone within the organisation understands and supports the project’s goals is essential for effective implementation. Clearly defining these goals early in the process helps in minimising conflicts, aligning teams and creating a more cohesive and focused effort (Gorgolewski, 2019). In fact, ensuring that all employees act according to the organisation’s sustainability and circularity goals is not always straightforward (I17).

According to van Oppen and Bosch (2021), achieving internal organisation might involve creating a business case for the project that considers both the costs and benefits of circular construction and collaborating with external parties that also align with circular needs and objectives. Municipalities with more resources, larger procurement teams and sustainability managers involved in procurement processes tend to exhibit a stronger alignment between individual knowledge of CE and overall organisational awareness (Hunka et al., 2023). As I1, I5 and I17 noted, circular procurement efforts often depend on individual project managers and their ability to navigate legal frameworks and practical constraints. This can create a gap between ambitious goals and what is actually realised in procurement:

This reliance on individual initiative is also visible in the Lomma case, where the successful implementation of deconstruction practices depended heavily on proactive coordination between procurement officers and technical staff. Unfortunately, the reliance on personal commitment rather than structured support poses a challenge. van Berkel and Schotanus (2021) argue that effective policy implementation in CPP depends not only on structural changes but also on the willingness and capacity of procurement officers to adapt their procedures. On the same lines, Gasparri et al. (2023) and Pomponi and Moncaster (2017) also highlight the significant role of individuals in the shift towards a circular built environment. Nonetheless, several interviewees warned about the risk of placing too much responsibility on individuals:

To improve alignment, I2 and I6 emphasised the need for structured internal dialogue and clear circularity objectives, including setting specific goals and deadlines. I6 stated that municipalities should collectively develop methods and approaches rather than working in isolation. Similarly, I10 illustrated how Göteborg integrated circularity into PP by engaging procurement, project and investment units in a structured dialogue and training process:

Despite these efforts, many organisations still lack a standardised approach, with circularity efforts often remaining project-specific (I8). This underscores the need for broader leadership involvement and structured policies to move beyond isolated initiatives. Pulkka et al. (2016) highlight how mutual awareness and alignment around specific values are crucial in fostering relationships among various stakeholders. As emphasised by Dokter et al. (2021), transitioning to a circular built environment requires inclusivity and collaboration to ensure widespread participation and understanding. The insights from the interviews reinforce the idea that while individuals play a crucial role in initiating change, broader organisational commitment, clear directives and the involvement of leadership are necessary to embed circular procurement into standard practices.

Access to knowledge is crucial for organisations to contribute effectively to sustainability and influence economic development (Meehan and Bryde, 2014; Testa et al., 2016). A key challenge of CPP is ensuring that all employees have the necessary knowledge and competence:

To address knowledge gaps, municipalities have used different learning strategies, such as external training and pilot projects, to explore and test circular approaches before broader implementation, as explained by I2:

Regarding pilot projects, while they generate valuable insights, their impact often remains confined to specific initiatives rather than being systematically integrated across procurement processes (ICLEI, 2020).

Digital tools also play a key role in facilitating CPP. As I8 described, a reuse app was developed for property maintenance contractors, ensuring that second-hand materials were prioritised over new purchases. According to I8, the success of this initiative relied on training sessions and the establishment of internal ambassadors who facilitated the transition. Such initiatives align with Pulkka et al. (2016), who emphasise the role of platforms in improving collaboration and, thus, simplifying CPP efforts. But, as I8 pointed out, practical challenges remain, including the difficulty of checking item availability in reuse hubs via mobile devices, indicating that digital solutions alone are insufficient without adequate training and usability improvements.

Collaboration within the supply chain is another essential aspect of integrating diverse knowledge and expertise, particularly in phases of the project that traditionally do not involve certain actors (Vergani et al., 2023). This collaborative approach ensures that the knowledge of contractors, architects and other stakeholders is integrated to achieve circularity goals effectively (Gerhardsson et al., 2020; Pulkka et al., 2016; Vergani et al., 2023). On the other hand, several interviewees emphasised the importance of internal initiatives, structured discussion and knowledge-sharing efforts in developing a shared understanding of circularity. Göteborg municipality, for example, has actively worked to align various units (procurement, project and investment units) through dialogue, training and information-sharing, as noted earlier. Even so, I10 admitted that even if a shared understanding has been developed across the administration, circularity is not yet fully established.

Lacking internal knowledge, some intermediate and beginner municipalities have taken advantage of external training. The training course focused on key concepts, legal requirements and different methods for working with climate impact reduction (I4). Beyond internal staff, some interviewees believed that the training efforts should be extended to suppliers and contractors (I12). I17 described how suppliers have been included in procurement-focused working groups, where they participate in the development of guidelines and recommendations for circular procurement practices. Even so, not all interviewees agreed on the value of extensive inter-organisational collaboration and some interviewees were sceptical about the importance of knowledge sharing and collaboration with other municipalities. I8 noted that:

While networks facilitate the exchange of best practices, the lack of standardised solutions remains a barrier to broader adoption. To ensure long-term implementation, municipalities have developed formal procurement guidelines and frameworks, such as the one provided by a Malmö municipal association. Additionally, integrating sustainability expertise into procurement decisions has helped ensure that climate and resource considerations are systematically addressed (I12). While municipalities are making progress in strengthening CPP-related knowledge and practices, challenges remain in moving from isolated initiatives to fully institutionalised circular procurement processes.

Aligning invitations to tender with circular principles is a key aspect of CPP. Previous studies suggest prioritising functionality-based specifications over technical specifications, as they define the problem rather than prescribing a product, facilitating service-based models that lead to greater flexibility and innovation in procurement (Grimbert and Zabala-Iturriagagoitia, 2024; van Oppen and Bosch, 2021). The interviews did, however, suggest a more complex reality. Although I2 explained that they have not yet seen any obvious benefit in prioritising one kind of specification over another, I10 and I11 explained that the use of technical versus functional specifications varies by discipline. For example, highly regulated areas like HVAC require detailed specifications, while construction allows for functional approaches, encouraging innovation and drawing on contractor expertise. Overall, the respondents agreed on the need for a strategic approach to procurement, tailored to specific circular needs and objectives. Even when circular guidelines are included in procurement templates and framework agreements, their implementation varies from project to project (I6 and I17). Among the intermediate and promoter municipalities, some prefer to have specific contract terms, allowing circularity-related solutions to be resolved during the contract rather than presented directly during bidding (I5). Others focus instead on the material and product quality to prevent premature replacement (I4).

Aligning with the idea that incorporating circular requirements into procurement contracts can help operationalise CE principles (Kristensen et al., 2021), some municipalities removed guarantees for reused materials if approved by the buyer, shifting the focus to warranties on labour rather than materials. While this approach is becoming more popular, it remains under development in practice.

Among intermediate and promoter municipalities, various strategies have been tested. For example, one municipality integrated resource and waste guidelines directly into procurement documents. Their approach emphasises designing for a CE by prioritising recyclable materials, selecting suppliers who reclaim waste for material recycling and ensuring transparency in material choices. Additionally, they implement structured waste management procedures, such as mandatory on-site sorting, minimising littering and conducting inspections to ensure compliance with CE principles. I6 described a project where they had taken a proactive approach by requiring the contractor to perform deconstruction, dismantling, cleaning, sorting and recycling as a part of the procurement contract and chose to use the lowest price as the deciding factor. Notably, in this project, the contracting authority retained ownership of the building materials, recognising their actual value. The Lomma case provides a further concrete example of this approach, as the municipality retained ownership of reusable materials, thereby operationalising this principle in contractual form. This approach aligns with Grimbert and Zabala-Iturriagagoitia (2024), who emphasise retaining ownership of materials in CPP as a key principle of functional sales in CPP since it can facilitate value recovery and reduce waste. Within this context, ensuring the practical enforceability of the PP is crucial. The use of vague procurement formulation, such as “use as much reused material as possible”, is often seen as a facilitator on this aspect, since being cautious can prevent legal appeals, which can delay projects and lead to a reluctance to introduce ambitious circularity targets. On the other hand, it represents the lack of a clear and systematic mandate (I17). To address this issue, Malmö municipality introduced a guideline with a category of reused products that always need to be prioritised.

Finally, in reflecting upon broader academic debates on whether green or sustainable procurement policies lead to the expected environmental and societal improvements (Testa et al., 2016), interviewees suggested additional procurement strategies. I5 proposed incorporating added value for consulting services by specifying how the consultants should work and the experience or approach they should adopt. Additionally, Stockholm and Göteborg plan to introduce climate-related budget requirements from 2025, which, according to I10, could indirectly promote circular solutions by incentivising resource efficiency. According to van Berkel and Schotanus (2021), procurers can incorporate “green” requirements such as including life cycle costing in awards tenders, using environmental certifications (e.g. ISO 14001) and other environmentally focused criteria. This would not only give environmentally responsible suppliers a competitive advantage but also stimulate all suppliers to adopt more environmentally friendly practices.

This shift from product-based pricing to service-based pricing in PP is in line with research suggesting that result-oriented product-service systems can promote circularity by reducing material consumption and extending product life cycles (Grimbert and Zabala-Iturriagagoitia, 2024).

Collaborative efforts are essential in construction projects to foster circularity (Gerhardsson et al., 2020; van Oppen and Bosch, 2021). A shift towards a CE requires innovative working methods, new partnerships, redefinition of the roles of existing collaborators and diverse stakeholder interactions rather than isolated efforts (Dokter et al., 2021). Interdisciplinary collaboration throughout the PP process helps realise circularity ambitions while staying within budget (van Oppen and Bosch, 2021). Public purchasers need to navigate carefully between collaboration and regulatory compliance, reinforcing the idea that neutrality should not come at the expense of trust or motivation (Fridner, 2025). The findings from the interviews support these theoretical perspectives, emphasising the importance of collaboration and structured dialogue with various stakeholders, including supply chain actors, research institutes and consulting firms. As I1 noted:

Promoter municipalities build strong networks with shared beliefs and goals often supported by ambitious environmental policies (Hunka et al., 2023). This is also exemplified by the current collaboration between three promoter municipalities. The value of collaborative initiatives such as the network established between Göteborg, Malmö and Stockholm is to bring together private and public actors to share experiences, discuss challenges and collectively advance circularity goals. Smaller municipalities, like Lomma, benefit from such networks, gaining insights from nearby cities.

Grimbert and Zabala-Iturriagagoitia (2024) highlight the importance of early market consultations with suppliers, as permitted by EU directives (Articles 40 and 41 of Directive 2014 / 24/EU), which help shape the procurement process and build on existing practices of engaging suppliers and stakeholders in market dialogues. The interviews also highlighted the importance of structured market dialogue to understand which requirements the supply chain is prepared to meet and to ensure they are ready to participate and submit bids (I4). For example, I5 described their municipality’s approach, stating that:

Similarly, I8 shared how discussions with a contractor changed initial resistance to reuse in a demolition project. These examples align with the broader literature, which emphasises the role of market dialogues as a key tool for reducing uncertainty and ensuring that procurement requirements remain feasible and in line with market capabilities (Grimbert and Zabala-Iturriagagoitia, 2024) and, thus, are a boon to CPP implementation (Alhola et al., 2019).

Interviewees from both intermediate and beginner municipalities stressed the significance of involving different actors in discussions and meetings to understand their perspectives and needs, which helps in setting appropriate requirements for procurement. In line with this, networks and platforms such as the climate-neutral construction initiatives are highlighted as valuable platforms fostering transparency and mutual support among stakeholders (Gerhardsson et al., 2020; Vergani et al., 2023). Interviewees also mentioned the importance of adapting procurement strategies to accommodate changes in regulations and market conditions, underscoring the dynamic nature of collaboration in achieving circular objectives within the construction sector. In this context, building trust through collaboration is especially critical. As Fridner (2025) argues, trust enhances information sharing, reduces transaction costs and mitigates relational risks by signalling fairness and commitment. Ensuring regular project reviews, clear communication and follow-up on contractual standards can help build “integrity trust”, which reassures suppliers about equitable treatment in competitive environments (Fridner, 2025).

Another point of alignment is the role of procurement strategies in fostering long-term collaboration (Hunka et al., 2023). Alternative procurement models, such as structuring projects as collaborative initiatives rather than traditional tenders, enable municipalities to experiment with circular approaches (Grimbert and Zabala-Iturriagagoitia, 2024).

When tendering contracts, adherence to five legal principles is essential: non-discrimination, equal treatment, mutual recognition, transparency and proportionality (LOU 4:1) (Sveriges riksdag, 2016). Although CPP should focus on closing material and energy cycles, minimising waste and promoting resource efficiency (European Commission, 2017), both the literature (Obwegeser and Müller, 2018) and the interview results suggest that tendering selection is still dominated by traditional approaches, which prioritise cost over sustainability.

Referring to the selection of suppliers for GPP, Ograh et al. (2023) suggest applying green supplier selection, explaining that selecting suppliers based on environmental criteria enables public purchasers to directly and indirectly enhance environmental outcomes. However, such approaches remain largely focused on improving the environmental performance of products within a linear production–consumption cycle. In contrast, CPP requires evaluating suppliers based on their capacity to retain material value, enable reuse and repair, manage reverse logistics or operate circular business models. This distinction is also reflected in our interview and case findings, where different strategies for both bid evaluation and procurement design were retrieved. I16 explained that the framework agreement excludes economic factors like pricing and instead focuses on fixed hourly rates and markups, allowing for greater flexibility in setting circular requirements. By contrast, I17 noted that cost-plus pricing models, where contractors earn a percentage-based markup on materials, create an economic disincentive for reuse. Since new materials often cost more than reused ones, contractors are financially motivated to procure new materials rather than search for reused components.

Regarding bid evaluation, the literature highlights how the two-stage tender process allows for better integration of contractors and consultants through early information-sharing but requires more time and complexity (Obwegeser and Müller, 2018). These two sides of the same coin reflect the bid evaluation method chosen by the municipalities participating in this study. While price remains a central criterion, several interviewees indicated a shift towards a balance between price and quality. For example, I16 explained that their standard model is typically fixed-price, but they are increasingly considering additional parameters such as implementation descriptions, interviews and broader economic context. The 70/30 price–quality split applied in the Lomma case is another example of how municipalities can attempt to balance economic and circular considerations in practice. The problem with quality evaluation is that it can be considered subjective:

To overcome the eventual subjectivity of quality evaluation without neglecting economic evaluation, Fregonara et al. (2022) recommend using a joint methodology based on the life cycle costing and CO₂ emissions assessment, also considering different weighting criteria and elements of uncertainty. In disagreement with this suggestion, none of the municipalities participating in the study has applied this methodology to evaluate bidders for CPP. Instead, they are more in line with traditional procurement strategies, focusing mainly on competitive tenders and negotiations with suppliers to reduce construction costs while ensuring compliance with project budgets (Ababio and Lu, 2024). Some of the municipalities, for example, usually opt for the lowest price while embedding circular requirements into the contract. I13 and I14 confirmed that when the lowest price is the deciding factor, more stringent mandatory requirements are included to maintain circularity goals. Conversely, when a balance between price and quality is considered, greater flexibility allows circular requirements to be integrated during the planning, design and production phases. These results align with the literature, which says that performance-based procurement leads to better project outcomes compared to low-bid models (Obwegeser and Müller, 2018).

Overall, while price remains a dominant factor in PP, the municipalities are experimenting with innovative evaluation methods to integrate circular requirements. Aligning with the literature, interview results suggest that broadening supplier bases to avoid dependence on a few large suppliers, ensuring fair competition and compliance with legal principles, refining evaluation criteria and adopting more flexible procurement models can help overcome barriers to CPP.

While the interview study revealed perceptions, organisational readiness and strategies across multiple municipalities, the Lomma case allows these themes to be examined in an operational context. The case provides indeed empirical grounding to assess how CPP strategies materialise in contractual design, project coordination and tender evaluation.

Consistent with the interview findings regarding the importance of clear contractual formulations (Section 4.1.4), the Lomma case demonstrates how circular ambitions can be translated into binding PP requirements. The contract prescribes specific circularity strategies, including the systematic inventory, dismantling, storage and resale of reusable materials such as bricks, doors, fixtures, railings and concrete elements. In line with literature emphasising ownership retention as a key circular strategy (Grimbert and Zabala-Iturriagagoitia, 2024), the municipality retains ownership of reusable materials, thereby preserving their value beyond the project itself. Furthermore, when recycled products are used, the requirement for a building product declaration can be waived unless contamination is suspected. These contractual decisions show how circular principles can move from strategic intention to enforceable obligations.

At the same time, the case confirms the interviewees’ concerns about the practical and organisational complexity of implementing circular requirements (Section 4.1.2). Manual deconstruction is time-intensive, since inconsistencies and timing mismatches between supply and demand characterise the reuse market. These challenges reflect the broader organisational and market readiness issues highlighted in the interviews. The case therefore reinforces the finding that legal frameworks are not necessarily the primary barrier; rather, coordination capacity, internal alignment and market maturity significantly influence implementation outcomes. Despite these constraints, the municipality reported gradual improvements in market capacity and material circulation, suggesting that iterative learning processes can strengthen CPP over time.

The Lomma case also provides insight into the interaction between circular ambitions and tendering strategies discussed in Section 4.1.6. In line with the literature that suggests two-stage tender processes to facilitate closer collaboration between contractors and consultants through early information exchange (Obwegeser and Müller, 2018), Lomma adopts a 70/30 split between price and contractor presentations. Bidders are required to submit portfolios and participate in oral presentations, allowing the municipality to assess sustainability experience, organisational capacity and commitment to circular practices alongside economic considerations. Although this approach introduces additional time demands and procedural complexity (Obwegeser and Müller, 2018), it illustrates how evaluation models can be adapted to integrate qualitative dimensions without abandoning cost control. It also reflects the broader tension identified in the interviews between price dominance and quality-based evaluation. By combining economic and competence-based criteria, Lomma sought to mitigate risks associated with complex circular requirements, including delays, disputes and change orders.

Beyond evaluation criteria, the case underscores the importance of structured collaboration and dialogue with contractors, aligning with the emphasis on market engagement identified in the interviews (Section 4.1.5). Early communication and clarification of expectations were essential in navigating uncertainties related to reuse, deconstruction logistics and compliance with LOU principles. This reinforces the argument that CPP implementation depends not only on regulatory possibilities but also on relational dynamics and trust-building within PP processes.

Taken together, the Lomma case both confirms and nuances the interview findings. It confirms that CPP can be operationalised through clear contractual obligations, adaptive evaluation models and collaborative approaches. At the same time, it reveals the persistent practical constraints associated with time, market maturity and organisational capacity. By linking strategic ambitions to project-level implementation, the case strengthens the multi-method approach of this study. The interviews provide insight into perceptions, strategies and institutional readiness across municipalities, while the Lomma case demonstrates how these dynamics unfold in a concrete PP process. The combined findings, therefore, offer a more robust understanding of the conditions under which CPP can move from policy ambition to practical application.

This study has explored the implementation of circular requirements in PP for construction projects. While it is still premature to describe these procurement practices as CPP, the results have shown that municipalities are making significant efforts to integrate circularity in their procurement strategies. The analysis of interviews with 17 municipal representatives and a case study revealed that to facilitate the transition towards CPP, municipalities have been adopting various strategies, including organisation and alignment, education and training activities both internal to the organisation and for the supply chain, stronger dialogue and collaboration networks, clear formulation of the requirements and adherence to legal principles while refining tendering procedures. Broadening the circular supplier base, intensifying internal dialogue within municipalities and ensuring compliance with the Swedish Public Procurement Act are, for example, crucial strategies for achieving circularity goals while maintaining legal compliance and fairness. Due to the construction project-based nature, the results have further shown that for successfully implementing CPP for construction projects, strategic approaches tailored to specific circular needs and objectives, coupled with collaboration and innovation, are essential. Moreover, the results indicate that while environmental sustainability teams often take the lead in driving CE initiatives, procurement departments are still in an adaptation phase, trying to overcome the complexities of aligning regulatory requirements with sustainability objectives.

Beyond its immediate results, this study contributes to the broader discourse on CE and CPP by providing empirical insights for a well-defined context. It highlights the necessity of a strategic approach that fosters collaboration and innovation while balancing environmental and economic considerations.

The main limitations of this study depend on its focus on a single case study, a relatively small number of interviews and a restricted geographic scope. However, its findings offer valuable insights for policymakers and urban planners looking to integrate CE principles into procurement processes. Clear guidance on refining procurement strategies and fostering collaboration can support municipalities striving to meet their sustainability targets.

Finally, this study contributes to Sustainable Development Goals 11 (sustainable cities and communities) and 12 (responsible consumption and production) by providing practical solutions and frameworks that can help municipalities transition towards more sustainable and CPP practices.

Future studies could explore different typologies of post-procurement evaluation of the projects and how they have been used as a tool to advance CPP. These instruments are indeed necessary not only to provide public purchasers with relevant information during the decision-making process but also for estimating the maturity level of CPP implementation.

The authors would like to thank all the municipalities, their companies and agencies and their employees who participated in this study. Moreover, the authors would like to thank Brian Atkin for his precious support.

Generative AI tools, specifically ChatGPT (temporary access), were used in the preparation of this manuscript for language improvement. The tool was used to improve the clarity and grammatical accuracy of the text. No content generation, idea formulation or substantive modifications were made beyond linguistic refinement. Both authors have personally reviewed and edited the final manuscript.