Part I of this series traced the history and development of sustainability in construction and explained why design-build (“DB”) contracting is particularly well suited to achieve sustainability objectives. But selecting DB contracting does not by itself ensure a sustainable outcome. The parties must define their sustainability objectives with precision, establish measurable performance criteria and identify who will measure compliance with the criteria, and also draft contract terms that clearly and fairly allocate the associated responsibilities and risks. Otherwise, the completed project may fall short of its sustainability objectives and expose the parties to claims, disputes, and litigation. Part II offers a non-exhaustive list of practical guidance for addressing these issues and reducing those risks.

This article references the ConsensusDocs 310 Green Building Addendum, in conjunction with an agreement between the Owner and the Design-Builder (e.g., ConsensusDocs 415)[1], [2] and AIA Document E204–2017 Sustainable Projects Exhibit,[3] together with AIA A141,[4] as its contractual baseline. The five-part framework that follows is a roadmap for allocating sustainability risk between private owners and design-builders: define the requirements, identify hidden performance guarantees, map out the sustainable objective, address third-party certification risk, and track performance against agreed benchmarks.

Reprinted courtesy of Jennifer Harris, Peckar & Abramson, P.C., Tiffany Harrod, Peckar & Abramson, P.C. and Joshua Pruett, Peckar & Abramson, P.C.

Ms. Harris may be contacted at jharris@pecklaw.com
Ms. Harrod may be contacted at tharrod@pecklaw.com
Mr. Pruett may be contacted at jpruett@pecklaw.com