As sustainability in all areas of commercial development becomes an increasing priority, the number of construction projects requiring sustainability targets is also on the rise.
Developers and construction firms are seeing requirements from investors (particularly in the public sector) and the Government regarding:
- Procurement – Supply chains are increasingly scrutinised for environmental practices, ethical tendering processes and use of energy-efficient transport methods
- Working practices – Low-emission construction methods are increasingly popular, as large-scale projects can be major polluters
- Use of land – The new Government is keen to protect ‘green belt’ land, so many projects have to be careful as to where they apply to build
- Environmental protection – Developers and construction teams are often required, whether by law or investors, to avoid environmental damage or excess pollution.
Failing to meet these targets can result in fines, reputational damage or loss of investment.
Construction contracts
Contracts are your opportunity to integrate sustainability initiatives into the foundations of your project and ensure they are considered at every stage.
You’ll usually have a contract with each party you’re working with on the project, including developers, investors, construction firms and material suppliers. Each contract should contain relevant sustainability targets and obligations for each party, which may include:
- A plan for waste disposal and minimisation
- Specification of low-waste materials or local resourcing
- Construction requirements to achieve certifications such as BREEAM
- Environmental reporting requirements
- Provision for independent audits of sustainability measures
These will be negotiated between each party and may include penalties for breach of contract.
If the sustainability requirements of the project change across its duration, it is advisable to seek legal advice to renegotiate the relevant parts of the contract.
Documentation and evidence
Sustainability requirements for construction projects are often a high priority for investors and local authorities – potentially resulting in substantial penalties if they are not met.
It’s important that you formally document every action your business takes to ensure that the project is sufficiently sustainable, which may include:
- Keeping a copy of the original contracts
- Recording actions and discussions from suppliers
- Reporting regularly on your progress
- Implementing training for staff on working sustainably
This will help you to demonstrate that you have met your legal obligations and any conditions attached to funding or other working relationships, should a dispute arise.
For advice on meeting your project’s sustainability requirements, please contact our specialist Construction Law team today.