Economic Viability of Circular Construction Business Models

Abstract

This thesis analyzes the economic viability of circular construction business models (CCBMs) in the European construction industry, with a special emphasis on the Central Europe. It intends to identify and evaluate strategies that not only allow for the integration of circular practices into construction businesses without risking their economic viability, but also potentially enhance their profitability and competitive edge. The study adopts a mixed-method approach, combining systematic literature reviews, a conceptual framework based on the ReSOLVE framework and the Business Model Canvas, and in-depth case studies of organizations such as Bouygues Construction and Rebel Group. This study delves deeply into current definitions, real-life initiatives, and the economic and regulatory obstacles that affect CCBMs. It logically evaluates the operational and economic impacts of using circular practices in construction, providing actionable insights for businesses seeking to transition to sustainability. The findings show that the early barriers to CCBMs, such as high upfront costs and uncertain return on investment, are outweighed by long-term financial gains, social and environmental benefits like reduced waste, resource efficiency, and market leadership in sustainable construction techniques. The thesis emphasizes the importance of strategic planning, regulatory support, and new business models in successfully implementing and scaling CCBMs, providing significant insights into both academic literature and industry practices.