climate-standard-of-care-construction.md

title: Climate Standard of Care (Construction) excerpt: date: 2024-03-27T14:16:10Z modified: 2025-07-23T11:15:34Z file_type: md permalink: clauses/climate-standard-of-care-construction.html wpid: 2049 status: publish type: clause jurisdiction:

• England & Wales maintenance-status:
• Not maintained practice-area:
• Construction sector:
• Construction and infrastructure eleventyComputed: clause_child_name: "Estelle's Clause" clause_summary: Revising the standard of care for construction contracts to require Contractors and Service Providers to adhere to best industry practice to mitigate climate risk and ensure that a construction project meets its decarbonisation or net-zero objectives. clause_last_updated_date: 2022-09-06 layout: layouts/clause.njk

Climate Standard of Care (Construction)

Child’s name

Estelle's Clause

Summary

Revising the standard of care for construction contracts to require Contractors and Service Providers to adhere to best industry practice to mitigate climate risk and ensure that a construction project meets its decarbonisation or net-zero objectives.

What this clause does

This clause aligns a construction project with the goals of the Paris Agreement. It ensures that during construction and on completion, the project meets its net-zero objectives and can withstand the physical climate risks which may arise and impact its resilience.

Clause Content

[Drafting note: capitalised terms relate to a defined term in this clause or a defined term in the main agreement that this clause is designed to be inserted into.]

1. Contractor’s obligations

1.1 The Contractor must carry out all of its obligations under the contract in accordance with:

1.1.1 the [Project Documents OR Contract Documents];

1.1.2 all applicable laws and standards; and

1.1.3 Best Industry Practice.

1.2 The Contractor warrants that:

1.2.1 it will use Best Industry Practice in carrying out its obligations under the contract;

1.2.2 it will achieve the Net Zero Objectives; and

1.2.3 the [Project OR Asset] will be fit for purpose and achieve the Net Zero Objectives at practical completion.

2. Net-zero targets

2.1 The Employer and the Contractor each warrant that:

2.1.1 they have a Net Zero Target; and

2.1.2 the delivery of the [Project OR Asset] is consistent with their respective Net Zero Target.

2.2 The Contractor must ensure that each subcontract includes equivalent provisions to clauses 1, 2.1 and [insert all other clauses that should be cascaded into subcontracts]. [Drafting note: consider if there should be a monetary threshold for this requirement, as it may not be practicable to include these obligations in all subcontracts.]

3. Net-zero objectives reporting

[Drafting note: consider requiring the Contractor to submit a Net Zero Objectives Plan at the commencement of the Project setting out how the Contractor intends to comply with the Net Zero Objectives. Clause 3.2.2 could link to the Net Zero Objectives Plan.]

3.1 The Contractor must provide to the Employer a report on the last day of each [quarter OR month – insert appropriate time frame] that describes conduct or actions taken to satisfy the Net Zero Objectives (the Net Zero Report).

3.2 The Employer must notify the Contractor within [10 (ten) Business Days] of receiving the Net Zero Report if the Employer:

3.2.1 accepts the Net Zero Report; or

3.2.2 considers that the Contractor is not meeting the Net Zero Objectives, setting out reasons.

3.3 If the Employer issues a notice under clause 3.2.2, the Contractor must promptly:

3.3.1 prepare a rectification plan to the satisfaction of the Employer, detailing how it plans to correct any failure to achieve the Net Zero Objectives set out in the notice or otherwise (including any temporary Offsetting required to realign the Contractor’s activities with the Net Zero Objectives*); and

3.3.2 comply with the requirements set out in that notice and the rectification plan, and within [20 (twenty) Business Days] notify the Employer of the rectification measures that have been implemented.

3.4 If the Contractor does not comply with clause 3.3, this will be deemed a [substantial breach of the Contract] and the default clause [●] will apply.

* [Drafting note: the reference to Offsetting is included as a back-up for the parties should they miss their net-zero target for the year. The offsetting requirement is described as temporary because the parties should only use offsetting if they miss their target for the year during the design and construction phase. It should not be used where the missed objective is the year-on-year target on completion in paragraph (b)(i)(A) and (B) of defined term Net Zero Objectives, as this would be considered a defect in the built asset and will be dealt with in the defect regime of the construction contract.]

4. Other climate related obligations

[Drafting note: Estelle’s Clause is focused on ensuring that the Contractor’s activities are Paris Aligned. However there are other climate and environmentally conscious construction practices that should also be considered. It is recommended that the following clauses are included in the construction contract:

4.1 Project carbon budget

[Insert Tristan’s clause (construction materials: procurement) and relevant definitions to include a Carbon Budget for the materials procurement for the project.]

4.2 Waste management

[Insert Francis’ clause (climate aligned construction waste management) and relevant definitions for sustainable waste management during the construction phase.]

4.3 Sustainable on site work practices

[Insert Ashkan’s clause (sustainable on site work practices) and relevant definitions to include relating to sustainable construction practices in the construction phase.]