Accelerating circular building solutions with a practical guide to circular procurement
At a glance
GHD was engaged by the Green Building Council of Australia (GBCA) partner on a practical circular procurement guide that supports the integration of circular economy principles into the building design and construction lifecycle stages. As the technical partner, we worked closely with GBCA and consulted widely with industry to develop and refine procurement strategies that aim to promote more circular procurement and decision-making throughout the built environment.
The challenge
Both GBCA and GHD recognised the need for practical guidance, given the building industry is responsible for over 50 percent of global resource use and 37 percent of greenhouse gas emissions. While there is ample guidance available for designing buildings with circular economy principles, a significant challenge remains in translating these concepts into tangible practice. Developers and industry professionals often lack a structured framework to incorporate circular economy requirements into tenders and contracts throughout the building lifecycle, hindering meaningful progress toward circularity.
Under a partnership arrangement, GHD collaborated with the GBCA to explore ways to support the industry in advancing the adoption of circular economy principles. Through industry dialogue, we identified key barriers to implementing circular practices, with the lack of practical procurement tools for circular building projects being a common major challenge.
To address this gap, the GBCA initiated the development of a comprehensive guide that offers a clear, stage-by-stage breakdown of circular procurement practices – spanning from the initial project brief and business case to design, construction, operation, and the end-of-use phase. The objective was to equip industry professionals with the tools and frameworks necessary to effectively integrate circular economy principles into procurement processes, enabling a smoother transition toward more circular and sustainable building practices across the industry. Mainstreaming circular procurement practices is expected to drive a broader industry shift as demand for circular products and services grows. With clearer expectations, businesses can invest in circular solutions more confidently, fostering long-term environmental and economic benefits for our communities.
Our response
The guide was developed collaboratively with key stakeholders, including the New South Wales, Queensland, and South Australian governments and Clean Energy Finance Corporation (CEFC), as funding partners. GHD acted as the technical partner for the project, providing research and industry knowledge, guidance and technical reviews on integrating circular economy principles at each stage of the building lifecycle.
The document was designed to incorporate detailed instructions for each procurement stage, complemented by technical appendices containing additional tools and resources. Our approach focused on creating practical tools, such as contract templates and specification clauses, to help professionals integrate circular economy principles when procuring products and services.
For example, when procuring a designer, architect, or engineer, the guide outlines key considerations for inclusion in tender documentation and offers guidance on the core tasks and deliverables. It also defines key performance indicators to track circular outcomes. This approach was designed not only for the construction phase but also for procuring goods and services for building operation to embed circularity throughout the entire lifecycle.
Recognising that circular economy challenges are inherently complex and require a multi-disciplinary approach, we leveraged GHD’s broader capabilities to deepen our understanding of the procurement process, particularly in large-scale engagements. In particular, we consulted with our architecture and project management teams – who manage the procurement of designers and contractors for clients – to identify areas where embedding circularity requirements would have the most significant impact on project outcomes.
The impact
A Practical Guide to Circular Procurement: For New Buildings and Major Refurbishments was launched at GBCA’s Transform 2025 conference.
By directly addressing procurement challenges, the guide lays a strong foundation for a more sustainable and resilient building industry, supporting Australia’s transition to a low-carbon circular economy. It is set to empower property developers and contractors to integrate circular economy principles into their projects, resulting in reduced material waste and increased resource efficiency.