CONSTRUCTION PROJECT PORTFOLIO MANAGEMENT FOR THE CIRCULAR ECONOMY: ADVANCING RESOURCE PRODUCTIVITY, INDUSTRIAL RESILIENCE, AND SUSTAINABLE ECONOMIC DEVELOPMENT

Abstract

The construction industry remains one of the most resource-intensive sectors globally, contributing substantially to material depletion, waste generation, and supply chain vulnerability. This study examined the integration of circular economy (CE) principles into construction project portfolio management to advance resource productivity, industrial resilience, and sustainable economic development. Grounded in the Resource-Based View, Circular Economy Theory, and Dynamic Capabilities Theory, the study adopted a quantitative, cross-sectional design. Data were collected via a structured, close-ended questionnaire from a population of 3,500 construction professionals across PEC-registered Grade 1–3 contracting firms in Lahore, Faisalabad, and Rawalpindi. Using stratified random sampling, 380 questionnaires were distributed, yielding 331 valid responses for analysis. Data were analyzed using SPSS and Partial Least Squares Structural Equation Modeling (PLS-SEM). Findings revealed moderate and inconsistent CE adoption (M = 3.14) within portfolios, while CE adoption significantly predicted resource productivity (β = 0.512) and industrial resilience (β = 0.478). Resource productivity and industrial resilience jointly explained 48.7% of variance in sustainable economic development, confirming partial mediation. The study concludes that circular economy integration drives sustainable development primarily through enhanced resource efficiency and resilient supply chains.