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Transportation Research Procedia 39 (2019) 389–397

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Green Cities 2018

Green Cities 2018
Construction site deliveries in urban areas, based on the example of
Construction site deliveries in urban areas, based on the example of
Szczecin
Szczecin
*
Oleksandra Osypchuk , Stanisław Iwan
a
Oleksandra Osypchuk*, Stanisław Iwana
a
Maritime University of Szczecin, Faculty of Economics and Transport Engineering, 11 Pobożnego Str., Szczecin 70-506, Poland
a
Maritime University of Szczecin, Faculty of Economics and Transport Engineering, 11 Pobożnego Str., Szczecin 70-506, Poland

Abstract
Abstract
Implementation of construction projects is of key importance for contemporary urban development. However, enterprises
involved in the project
Implementation encounter projects
of construction problemsisofofvarious kinds. One of
key importance forthem is construction
contemporary urbansupply chain functioning.
development. However,Construction
enterprises
site deliveries
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of various constitute
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chain functioning. with
Construction
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site to the transport
deliveries being partpolicy and their impact
of construction on the constitute
supply chains urban traffic organisation.
a weakness due toThis article presents
restrictions imposedanbyanalysis of solutions
city authorities with
appliedtoin the
regard construction site deliveries
transport policy within
and their theon
impact area
theofurban
the city of Szczecin,
traffic and attempts
organisation. at diagnosing
This article presents anthe major problems
analysis in
of solutions
that regard.
applied in construction site deliveries within the area of the city of Szczecin, and attempts at diagnosing the major problems in
that regard.
© 2018 The Authors. Published by Elsevier B.V.
© 2019 The Authors. Published by Elsevier B.V.
©
This
This
is an
2018 The
is an
open accessPublished
Authors.
open
article under the CC BY-NC-ND
by Elsevier
access article under B.V.
the CC BY-NC-ND
license (https://creativecommons.org/licenses/by-nc-nd/4.0/)
license (https://creativecommons.org/licenses/by-nc-nd/4.0/)
Selection
This is an and
openpeer-review
access under
article responsibility
under the CC of the
BY-NC-ND scientific
Selection and peer-review under responsibility of the scientificlicensecommittee of
of Green
Green Logistics
Logistics for
for Greener
Greener Cities
Cities 2018.
(https://creativecommons.org/licenses/by-nc-nd/4.0/)
committee 2018.
Selection and peer-review under responsibility of the scientific committee of Green Logistics for Greener Cities 2018.
Keywords: urban freight transpor; construction supply chain; city logistics;
Keywords: urban freight transpor; construction supply chain; city logistics;

1. Introduction
1. Introduction
Urban development would be impossible without implementing construction projects. Buildings are a significant
Urban
factor thatdevelopment would
is decisive for be impossible
a city’s without
attractiveness. implementing
However, due to construction
the complexityprojects. Buildings
of processes are aplace
taking significant
in the
factor
course that is decisive for
of construction a city’s
project attractiveness.
implementation, However, due
construction to the complexity
enterprises of processes
confront a broad array oftaking placeOne
problems. in the
of
course of construction
the hardest problems toproject implementation,
solve is construction
the issue of construction enterprises
site deliveries,confront a broad
particularly array
in the ofof
case problems.
projects One of
carried
the hardest
out in problems to solve is the issue of construction site deliveries, particularly in the case of projects carried
city centers.
outEnterprises
in city centers.
that carry out construction projects must comply with legal requirements not only with regard to
Enterprisesand
construction that carry out
assembly construction
works, but also projects must
in the area of comply withtransport
the binding legal requirements notcity,
policy of the onlynamely
with regard to
the time
constructionfor
constraints andlarge
assembly
goodsworks, buttoalso
vehicles in the area
enter city, of
andthebanning
bindingcertain
transport policy ofofthe
categories city, namely
vehicles the time
from access to
constraints for large goods vehicles to enter the city, and banning certain categories of vehicles from access to

*
Corresponding author. Tel.: +48 91 48 09 687.
*E-mail address:author.
o.osypchuk@am.szczecin.pl
Corresponding Tel.: +48 91 48 09 687.
E-mail address: o.osypchuk@am.szczecin.pl
2352-1465 © 2018 The Authors. Published by Elsevier B.V.
This is an open
2352-1465 access
© 2018 Thearticle under
Authors. the CC BY-NC-ND
Published license (https://creativecommons.org/licenses/by-nc-nd/4.0/)
by Elsevier B.V.
Selection
This is an and
openpeer-review under
access article responsibility
under of the scientific
the CC BY-NC-ND licensecommittee of Green Logistics for Greener Cities 2018.
(https://creativecommons.org/licenses/by-nc-nd/4.0/)
Selection and peer-review under responsibility of the scientific committee of Green Logistics for Greener Cities 2018.

2352-1465  2019 The Authors. Published by Elsevier B.V.

This is an open access article under the CC BY-NC-ND license (https://creativecommons.org/licenses/by-nc-nd/4.0/)
Selection and peer-review under responsibility of the scientific committee of Green Logistics for Greener Cities 2018.
10.1016/j.trpro.2019.06.041
390 Oleksandra Osypchuk et al. / Transportation Research Procedia 39 (2019) 389–397
2 Oleksandra Osypchuk, Stanisław Iwan/ Transportation Research Procedia 00 (2018) 000–000

selected urban areas. This hinders the planning, scheduling and carrying out of construction site deliveries, and
consequently the overall functioning of the whole construction supply chain.
Performing construction site deliveries in cities is an important and interesting issue due to the impact of
transport on the natural environment, road traffic organization, and aspects of rationality in construction site
deliveries planning (Allen et.al. 2013). Nevertheless, the scope of research done in this regard is often limited. It was
not until recently that the problem of Supply Chain Management in the construction industry, being a multi-
disciplinary issue, began to gain more attention from researchers. The research areas include mainly the modelling
of business processes connected with the functioning of Supply Chain Management, Green Architecture
(Kobylarczyk 2018; Dell’Amico, Novellani 2017; Guerlain 2018 ), sustainable construction, green building design
(Kibert 2016), performance and consolidation of construction site deliveries in cities (Hamzet et.al. 2007; Allen et.
al. 2012; Business… 2017). However, the academic literature is not yet exhaustive (Golini et.al. 2016).
One of the few projects dealing directly with comprehensive research on green solutions for construction supply
chains in city areas is the SUCCESS project (Sustainable Urban Consolidation CentrES for conStruction), financed
under the Horizon 2020 programme (SUCCESS… 2018). The project is implemented by 11 partners from various
European countries, including 4 pilot cities – Luxembourg, Paris, Valencia and Verona. The project comprised
analyses regarding deliveries performed to meet the needs of enterprises carrying out construction works, and
business models developed to find solutions to support effective transport operations (VPF 2017). It led to
identification of problems that occur in construction supply chains, and to proposing some solutions to handle them,
such as e.g. consolidation centres. Additionally, application of telematics tools (RFID, GIS and other) was tested in
order to streamline the flows in construction supply chains. The solutions were implemented in the cities involved in
the project (UNIMORE 2018). An important outcome of the project is the simulation tools, including interactive
maps, that make it possible to assess the impact of the construction supply chain on the urban environment –
including pollutant emissions.
The main aim of this article is diagnosing the problems connected with construction site deliveries performed
within cities, based on the example of Szczecin (a city situated in the north-west of Poland), and analysing the
possibility of applying good practices to support construction supply chains functioning, which are applied in other
European cities. For the purposes of this article, a survey was carried out with regard to selected construction
projects and delivery-related solutions applied by entities performing the construction site deliveries.

2. Logistic aspects of construction projects in cities

2.1. Logistic planning of construction projects in cities

Construction project logistics involves planning of purchases, deliveries, transport and storage of materials and
machinery, as well as scheduling the works. Thus, it constitutes an important part of the whole process of
construction project implementation, particularly in the context of logistic management. Treating logistics as an
integral element of this type of projects at each stage of an investment project cycle enables obtaining economies of
scale and a synergy effect, which in turn translates into economic benefits (Serra et. al. 2003)
Rational planning of construction projects is aimed at reduction of costs connected with construction project
implementation, mainly by decreasing the inventory levels (Sobotka et. al. 2005). This includes striving to decrease
the capital frozen in the inventory as well as solving the problems related to physical deployment of the resources on
a construction site with a limited storage capacity. Construction companies increasingly strive to achieve lean
construction objectives (Alarcón 2014). Within the area of construction site deliveries, companies strive to make use
of any available tools and concepts of deliveries organisation (e.g. just-in-time), which helps streamline the
operations or brings economic benefits, however, the extent to which they are used is still negligible (Tezel, 2017,
2018). Striving to achieve lean construction, especially with regard to construction site deliveries, seems to be a
good direction of construction enterprises development.
In the course of construction project planning, the main contractor must select a form of procurement that is
adequate for their deliveries. There are four basic ways to organise the procurement (Sobotka 2010):

• the centralised model, where procurement is provided by the main contractor, and the deliveries are consolidated;
 Oleksandra Osypchuk et al. / Transportation Research Procedia 39 (2019) 389–397 391
Oleksandra Osypchuk, Stanisław Iwan / Transportation Research Procedia 00 (2018) 000–000 3

• dispersed procurement, consisting in delegating the procurement to individual subcontractors;

• procurement provided by logistic entities – this model is used in the case of large projects, where a special entity
is established for the purposes of the project implementation, and the entity’s objective is nothing but performing
the related deliveries;
• mixed models comprising selected elements of the other models.

In addition to the procurement form, the project contractor also has to plan how the deliveries are to be performed
in terms of time and available space (Jaśkowski 2018). Deliveries made to construction sites located within cities are
to a large extent complicated due to transport restrictions in given areas. Most often such planning is done in
consultation with the roads administrator who helps the construction company to plan the routes, draw up a schedule
for the vehicles, and sometimes even closes the selected road sections and detours the traffic in order to enable the
deliveries to be performed.

2.2. Advantages and disadvantages of using the particular kinds of procurement

While choosing a particular way of organising the procurement, a construction project contractor bases their
decision on: the construction site location, the kind of works to be done, the size of the construction entity, the
requirements set to the suppliers, the construction project implementation time. But every kind of procurement has
advantages and disadvantages. SUCCESS project made SWOT analyse for using construction consolidation centres
(CCC) as a part of procurement process. Main strengths was: reduction of the congestion near construction site, less
damaged and stolen materials, more flexibility of deliveries, and other. From the other side, weaknesses: some
materials can’t be storage, it’s difficult to obtain short term profits, high investment. As a opportunities was
identified: development of ICT tools, possibility of just-in-time work, good experiences for other industries. And a
threats was: debilitation of construction industry after economic crisis and lack of big urban developments (VPF,
2017).
The conducted literature research and direct interviews with selected construction companies allowed to identify
the important for Szczecin enterprises advantages and disadvantages of various types of procurement.
When the centralised model of procurement organisation is selected, the main contractor has continuous control
over the quantity and quality of purchased materials, has an influence on the selection of the supplier, and often
obtains financial benefits in the form of lower prices offered by their regular suppliers. In addition, in the case of
cooperation with a transport company on an outsourcing basis, lower prices of delivery may be offered. There is also
a possibility of providing transport services by the materials supplier as part of their comprehensive offer. However,
this kind of procurement also has its drawbacks. The most significant disadvantages include hindrances related to
the procurement planning – so as to be able to provide the procurement in possibly the most rational way, the main
contractor has to obtain orders for materials from all the subcontractors, which means a need to be in permanent
touch with them, and to place the order in appropriate time. Another drawback is extending the time of providing the
procurement due to the volume and diversity of the orders. The order volume is also decisive for choosing the means
of transport, in the case of high volume transport it may be difficult for a company to choose the delivery time due
to access restrictions for heavy goods vehicles, and also it may be necessary to change the traffic organisation on a
selected route section, while the process of performing the delivery may cause congestion.
Table 1 below presents the selected disadvantages and advantages of centralised procurement.

Table 1. Centralised procurement. Source: own study based on (Sobotka 2010)

Advantages
Control over delivery making
Control over materials quality
Possibility of deliveries consolidation
Lower prices of materials
Lower prices of deliveries
Disadvantages
Hindered procurement planning
Extended time of delivery making
Selection of transport vehicles
Delivery volumes
392 Oleksandra Osypchuk et al. / Transportation Research Procedia 39 (2019) 389–397
4 Oleksandra Osypchuk, Stanisław Iwan/ Transportation Research Procedia 00 (2018) 000–000

Dispersed procurement makes it possible for a company to transfer the responsibility for procurement
organisation to the subcontractors. Each of the subcontractors is free to choose a supplier of the materials.
Procurement planning is independent from the other subcontractors. However, a very significant drawback of this
type of procurement is that the general contractor has no control over the quality and quantity of the materials and
no possibility of consolidating the deliveries.
Table 2 itemises the advantages and disadvantages of dispersed procurement.

Table 2. Dispersed procurement. Source: own study based on (Sobotka 2010)

Advantages Disadvantages
Transferring responsibility for providing the No possibility of consolidating the deliveries
procurement.
Selection of transport vehicles Scarce possibility of controlling the delivery
making
Shorter delivery lead time Scarce possibility of controlling the materials
quality
Procurement planning

Procurement provided by logistic organisational units is typical for large construction projects, since it requires
establishing a separate entity within the company structure for the purposes of the given project implementation,
which involves both financial outlays and organisational efforts. This solution, however, shows the advantages of
centralised as well as dispersed procurement. The individual advantages and disadvantages are presented in Table 3.

Table 3. Procurement provided by logistic organisational units. Source: own study based on( Sobotka 2010)
Advantages Disadvantages
Transferring responsibility for providing the Cost of maintaining the logistic organisational unit
procurement.
Control over delivery making Limited possibility of control
Control over materials quality
Possibility of consolidating the deliveries
Lower prices of materials
Lower prices of deliveries

Mixed procurement is a solution that combines the elements of centralised and dispersed procurement. In this
model, procurement is provided in part by the general contractor, and in part by the subcontractors. This sort of
procurement combines the advantages of both procurement models, without generating additional costs. However, it
requires continuous communication with the subcontractors in order to avoid any repeated orders. Table 4 presents
the advantages and disadvantages of mixed procurement.
Table 4. Mixed procurement. Source: own study based on (Sobotka 2010)
Advantages Disadvantages
Transferring responsibility for providing the A need to communicate with subcontractors on a
procurement. permanent basis
More possibilities of just-in-time procurement Partial possibility of controlling the delivery making
Possibility of consolidating the deliveries Partial possibility of controlling the materials quality
Lower prices of deliveries
Lower prices of materials
 Oleksandra Osypchuk et al. / Transportation Research Procedia 39 (2019) 389–397 393
Oleksandra Osypchuk, Stanisław Iwan / Transportation Research Procedia 00 (2018) 000–000 5

Referring to the SWOT analysis of the SUCCESS project and own research, it can be concluded that there is no
universal kind of procurement. Each enterprise, depending on the type of construction project, must evaluate all
advantages and disadvantages, analyse the possibilities and threats, and then choose the kind of procurement.

3. The analysis of construction site deliveries performed with the city of Szczecin

3.1. Research Methodology

For the purposes of this article, a survey was carried out with regard to selected construction projects
implemented in the city of Szczecin in the years 2015-2018. The survey covered 21 projects implemented by various
business entities. The projects fell within the scope of Section 1 of the Polish classification of types of construction
(based on the European Classification of Types of Construction, CC), i.e. only residential buildings (single-family
residential buildings, buildings with two residential units, multi-unit buildings, public accommodation buildings)
and non-residential (offices, hotels and tourist accommodation, commercial and service outlets, transport and
communication facilities, industrial and storage buildings, public cultural facilities, educational facilities, hospitals,
physical culture facilities, and other). The construction projects covered by the study were implemented either by a
single contractor or involved subcontractors.

3.2. Characteristics of the research sample.

Szczecin is located on the Oder River and is the biggest city in the West Pomerania region in the north-west of
Poland. With its population of over 400 thousand, it is the seventh biggest city in Poland. Also, one of the major
Polish seaports is located there. Passenger transport dominates within the city area, which is an increasing problem,
particularly in the historical centre (Kijewska et.al., 2018).
Szczecin is a fast developing metropolis – this is confirmed by the number of construction projects being
implemented, which in turn leads to the growing number of construction businesses. The changes in the number of
construction enterprises are shown in Table 5.

Table 5. Quantity of entities in the private sector in the West Pomerania Region, as at 31 December, for all kinds of construction
works in the city of Szczecin. Source: own study based on statistical data provided by GUS (Central Statistical Office)

Year Quantity of entities of

the national economy

2015 7764
2016 7868
2017 8025
2018 (as at 31.01) 8018

The surveyed enterprises were asked what kind of construction project they were involved in. The biggest group was
made up by residential buildings with two and more units (29%) and single-family residential units (19%). More
detailed results are presented in Fig. 1.
6394 OleksandraStanisław
Oleksandra Osypchuk, OsypchukIwan/
et al.Transportation
/ Transportation Research
Research Procedia
Procedia 0039 (2019)
(2018) 389–397
000–000

Fig.1 Kinds of implemented construction projects. Source: own work.

All the surveyed construction projects were broken down according to their size. Most of them were small, i.e. up
to 999 m2 . The quantity of the surveyed construction projects classified as small, medium and large are shown in
Table 6.

Table 6. The size of the implemented construction projects. Source: own work.
Construction m2 Quantity
project size

Small up to 999 9
Medium from 1000 to 9999 7
Large from 10000 5

3.3. Results of the survey on construction site deliveries within cities

The surveyed construction enterprises were asked about the quantity of subcontractors involved in the
construction project implementation. It turned out that the most construction projects were implemented using from
0 to 9 subcontractors, where zero subcontractors meant that the project was implemented by the main contractor
only. Detailed results can be found in Table 7.

Table 7. Quantity of subcontractors involved in the construction. Source: own work.

Quantity of subcontractors Quantity of surveyed
construction projects
0-9 14
10-19 3

20 and more 4
 Oleksandra Osypchuk et al. / Transportation Research Procedia 39 (2019) 389–397 395
Oleksandra Osypchuk, Stanisław Iwan / Transportation Research Procedia 00 (2018) 000–000 7

The survey has also shown that there are no correlations between the quantity of subcontractors and the selected
type of procurement.
The surveyed enterprises were questioned about the kind of procurement applied for the particular construction
projects (Table 8). It turned out that the most popular kind of procurement was the centralised one, and it was
possible to find it at each construction site, apart from the large residential building projects. Dispersed procurement
was identified only in the case of small residential buildings and medium non-residential buildings. However, it is
hard to identify a correlation between the kind, size and the applied model of procurement.
Procurement provided by special logistic organisational units was not found at all, which may indicate that the
costs of using this procurement type are high and that the share of large projects in the totality of the construction
projects is relatively small.
Considering the reasons for choosing different types of procurement, in addition to organizational costs, should
indicate the lack of knowledge about organizational and technical solutions, supporting logistic processes on the
construction site. The dissemination of existing knowledge on this subject among the management of construction
companies may positively result in the frequency of choosing more expensive, but favourable for the environment,
and help counteract resistance and fear of applying more innovative solutions.

Table 8. Procurement type applied in the implementation of construction projects in Szczecin. Source: own work.
Building type Building size Quantity of Procurement type
buildings
Residential building small 4 Centralised and dispersed procurement
medium 3 Centralised and mixed procurement
large 3 Mixed procurement.
Non-residential building small 5 Centralised and mixed procurement
medium 4 Centralised and dispersed procurement
large 2 Centralised and mixed procurement

3.4. Proposals to improve construction site delivery processes in the area of Szczecin

In the pursuit of improving the processes of construction supplies in Szczecin, it is worth referring to the good
practices of other cities. An example of this is the reconstruction of the Berlin Palace (Berliner Stadtschloss).
Reconstruction started in 2013, the finish is planning for the end of 2019 (Bartmanski, 2018). It is a big logistic
challenge due to the location of the construction site, the size of the building or other construction works nearby
(e.g. road works).
The location of the object in the centre of Berlin obligated the contractor to use complex logistic solutions, which
are CCC, consolidation of supplies, using of telematics solutions or using of innovative construction technologies, as
a 3D printing. However, Berlin is not realizing such large projects for the first time. In the years 1993-2004, the
construction of a modern centre covering residential, office and commercial facilities was carried out on the
Potsdamer Platz. Deliveries were made without using public transport system, by rail transport and inland waterway
transport. Such organization of the supply process allowed to reduce the negative environmental effects, and
additionally did not burden the public roads (Sobotka, 2010).
This kind of organization of large construction projects is an example to follow for other cities.
The above described survey results show the popularity of the centralised model of procurement, which seems to
be a positive trend in particular in terms of the possibility of consolidating construction site deliveries. Consolidation
of deliveries made to construction sites located in city areas means a possibility of reducing CO 2 emissions and road
traffic load, which is a key element in particular in the case of construction sites located near the roads characterised
by significant traffic intensity and low capacity. A case like that is shown in Fig. 2a and 2b.
8 Oleksandra Osypchuk, Stanisław Iwan/ Transportation Research Procedia 00 (2018) 000–000
396 Oleksandra Osypchuk et al. / Transportation Research Procedia 39 (2019) 389–397

a) b)

Fig. 2. (a) Construction site entrance ; (b) Construction site location.

Procurement for the construction project shown above is of the mixed type. Deliveries to this construction site
were performed during the night when large goods vehicles were involved. Any deliveries that needed vehicles of
up to 3.5 tonne loading capacity took place all day long depending on the needs, however, such deliveries cause
congestion at the road junction. A good solution seems to be consolidation of deliveries and moving all deliveries to
night or early morning hours. It would also be good to create a larger construction warehouse on the construction
site, which would allow the creation of material inventory and thus reduce the amount of non-consolidated
deliveries.
In the case of centralised model of procurement organisation, none of the construction enterprises indicated it had
been using any telematics systems to support the process. Application of such systems seems to be a good solution
to improve the process of communication between subcontractors and the general contractor. Additionally, a system
of this kind is capable of improving the information flow throughout the supply chain.

4. Conclusions

Construction site deliveries in cities is a major challenge for companies implementing these projects. Particularly
in terms of adapting to the restrictions of city authorities regarding high tonnage car transport or organization of the
logistics process.
Choosing the type of procurement is an important element of logistics construction projects. The study of the
implemented EU projects and the literature of the subject allowed us to analyse the results of our own research
through the example of good practices from other cities.
A research study into construction site deliveries in the city of Szczecin made it possible to identify the most
popular forms of procurement among local building enterprises. The most widely used type of supplying the
construction sites turned out to be centralised procurement. The least popular, in turn, was procurement provided by
special logistic organisational units.
The analysis of advantages and disadvantages of the individual procurement types as well as the survey results
have led us to the conclusion that procurement provided by special logistic organisational units is the least popular
due to the cost of maintaining such units, even though it has the most advantages. Centralised procurement is a
comfortable solution, mainly due to the possibility of controlling the whole construction supply chain by the general
contractor, and additionally there are possibilities of consolidating the deliveries, which leads not only to financial
benefits in the form of delivery costs reduction, but also benefits in connection with CO 2 emissions reduction and
decreased road traffic load (Nowakowska-Grunt, Strzelczyk 2016).
The study made it possible to find that the kind of the construction project, its size and the number of
subcontractors involved in the project implementation has no influence on selection of the procurement model.
Construction enterprises that organise construction site deliveries within city areas must strive to implement the
latest organisational and telematics solutions (e.g. RFID, GIS) in order to streamline the activity, as well as for
 Oleksandra Osypchuk et al. / Transportation Research Procedia 39 (2019) 389–397 397
Oleksandra Osypchuk, Stanisław Iwan / Transportation Research Procedia 00 (2018) 000–000 9

environmental reasons. Dissemination of available knowledge on this topic among the manamgement of
construction companies can be a good step towards increasing the frequency of choosing more expensive, but
environmentally and community-friendly solutions such as CCC, and help counteract resistance and fear of applying
more innovative solutions.

Acknowledgements

The research results presented in this article were created as part of the research work No 1/S/IZT/18, titled
“Analysis of logistic determinants of sustainable urban development”, financed from the grant of the Ministry of
Science and Higher Education to finance statutory activities.

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