Climate Contract Playbook Edition 3
191
[Estelle’s clause]
The Origin Story
Child’s name
Estelle’s clause
Full name
Green Design and Construction standards
Practice Area / Sector
Construction
The typical standard for the performance of works and services, commonly found in construction contracts, does not require the Contractor or Service Provider to take into account climate risks or other sustainability objectives to achieve net zero targets. As such, new development projects may be built or designed in a manner that: • releases avoidable greenhouse gas emissions into the atmosphere throughout construction, which exacerbates the impact of climate risks (generally) within the wider community; and • exposes the Employer (and subsequent owners) to the impacts of climate change, that may emerge in the future and which could compromise the physical integrity of the development. Revising the standard of care to require Contractors and Service Providers to: • adhere to “Best Industry Practice” throughout the performance of their obligations and delivery of the Project, in order to mitigate against climate risk being generally exacerbated in the region; and • ensure that Project meets the “Green Objectives” upon completion and into the future, so that the Project is capable of withstanding climate risks which may arise and impact the Project. It is understood that physical assets, such as buildings and infrastructure services, will be vulnerable to damage, disruption or destruction by extreme precipitation, flooding, fires, and other hazards as a result of climate change. It is within the interests of all stakeholders within the construction industry to ensure that this standard of care is adopted and implemented within the lifecycle of a development.
Issue
Solution
Context
Projects will be: •
designed and constructed in a manner that does not exacerbate climate risks generally throughout the term of the contract (which could ultimately compromise developments in the future); and • delivered to withstand climate risks which may emerge in the future.
Impact
1. 2. 3. 4. 5. 6. 7. 8. 9.
Landlords, Developers and subsequent land owners Procurement teams (including Government infrastructure)
Contract managers
Sustainability managers
Stakeholders
Precedent and know how providers
Professional support lawyers
Private practice firms
Construction companies and contractors
Service Providers, such as architects and design teams
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