Incorporating Environmental Sustainability in Project Portfolio Management by Construction Contractors

The contribution of an organization in environmental sustainability is reflected in its processes, supply chain, operations, and services. A sustainable construction contracting organization leaves a positive impact on the environment and society since it does not limit its concerns to the border of its business but extends its considerations to the surrounding environment. Running projects and gaining business advantages should not be sought at the expense of endangering the ecological environment. Several contractors in the construction industry consider the relevant criteria to control their ethical impacts and sustainability practices. Such criteria can be considered in the pre-project evaluation and selection so that the sustainability goals are supported. Construction contracting organizations are facing complexities in selecting the right projects with respect to conflicting objectives and requirements. Consideration of all project selection criteria including resource capacity, budget constraints, risk, return, economic metrics, and corporate goals, when are coupled with sustainability requirements becomes even more complex for business leaders. Project portfolio management as a facilitating tool can be used to balance these criteria and help contractors choose to tender projects that they are capable of completing without generating massive waste and sacrificing the environment. There is a paucity of research on the application of the project portfolio management approach to factor in sustainability for the selection and oversight of a set of projects. This study aims to provide an understanding of the benefits of applying the project portfolio management in achieving sustainable development of construction contracting organizations. The findings in terms of 11 potential sustainability actions provide insight into the consideration of sustainability as an important factor in the selection and execution of projects regarding the contractors’ level of capabilities and resource capacities. 