Although the Government may be reconsidering its commitment to Net Zero, those working in the construction sector should remain vigilant of the legal and contractual green duties that remain in place.
We want to help you understand what you need to do to remain compliant as well as the steps you can take to improve your approach to sustainability.
Who in the supply chain should act first?
Environmental duties affect every party, so early engagement is essential.
Clients and developers must be clear when preparing planning submissions, while designers need to show how proposals meet Part L and emerging building standards.
Contractors and sub-contractors must be ready to deliver to those standards and to provide the data and test evidence clients will demand.
Funders and employers should make their expectations clear in procurement documents so tenders can price risk properly.
What should be checked before work starts?
Treat environmental checks like any other pre-contract risk survey.
Confirm planning obligations, including any Biodiversity Net Gain targets, review Part L/energy performance requirements, and agree who will produce and sign off the biodiversity, energy and carbon documentation. Make sure tenders require embodied-carbon data, supply-chain declarations and evidence of proposed mitigation measures so you’re not negotiating these points after contract award.
With regards to contracts, it is imperative that they allocate environmental risk sufficiently.
This means that contracts must be established with measurable clauses that can translate into direct action.
The contract needs to ensure that the party best placed to control delivery is obliged to comply with named laws and planning conditions, and to provide documentary proof that this has been conducted to a satisfactory level.
It is also important to set out how increased costs from new regulatory requirements will be dealt with, including re-pricing and time extensions.
Where necessary, performance testing and warranties should be incorporated into contracts with required tests being clearly defined with staged remedies if targets aren’t met.
To ensure that biodiversity delivery is maintained, you should specify who secures on-site habitat, who buys off-site biodiversity units if needed, and who manages long-term monitoring.
Supply-chain and reporting obligations can also be clearly defined from the outset and require embodied-carbon and lifecycle reporting from key suppliers, plus audit rights for clients and funders.
What practical steps reduce disputes?
As with all aspects of the construction sector, the best way to handle disputes is to avoid them entirely.
You should seek specialist advice early and involve ecologists, energy modellers and sustainability consultants during design so obligations are realistic and testable.
Alongside this, you should maintain robust records that can evidence and justify any decisions that are made throughout the process.
To improve financial security, you should consider using retentions, bonds or project bank accounts where long-term environmental performance or habitat management is at stake.
Use a clear contractual process to handle delays or late design changes to ensure that these do not escalate into a dispute.
If a performance obligation fails, contracts should set out remediation steps, timeframes and liquidated damages where appropriate.
If failure stems from a third party, the change-in-law and variation mechanisms should protect the party that would otherwise inherit the cost.
Environmental law and net-zero policy are reshaping how projects are specified, even as the Government’s commitment wavers.
By baking measurable obligations into contracts, sharing risks where they belong, and insisting on clear reporting and security, clients and the supply chain can meet regulatory expectations without destroying margins.
Our expert team can guide you through the process of designing contracts that fulfil your environmental obligations while minimising the risk of disputes.
Don’t let environmental concerns disrupt your work in the construction sector. Speak to our team today!