18 MAY 2009

JCT PUTS SUSTAINABILITY INTO EVERY CONTRACT

The Joint Contracts Tribunal (JCT) has amended and re-published its contracts to include new sustainability provisions. Published by Sweet & Maxwell, the new versions will start to become available from bookshops this month.

The decision by JCT to extend the green provisions within its contracts followed an industry-wide consultation last year, several months of drafting and consultation from across the property and construction industries, and publication of its sustainability guidance Building a sustainable future together earlier this year.

JCT chairman, Peter Hibberd, said: "With almost half of all CO2 emissions coming from buildings, and the construction process itself being particularly wasteful, JCT recognised a need, and an opportunity, to help improve the performance of the construction and property industries."

The sustainability clauses and accompanying guidance do not seek to impose rigid criteria upon parties, or strict targets. Instead they introduce a framework under which the contract can encompass sustainability. The guidance document stresses that the client's commitment and the early involvement of the supply chain are essential to achieve sustainability both in the design and construction processes.

The clauses and guidance notes specify a range of contractual provisions that could be selected, including value engineering to encourage design efficiency; requirements to reduce, reuse and recycle; limiting waste; saving energy and water; reducing emissions, and; using sustainable materials and products.

Which ones are used depends ultimately on the client organisation. It will determine the approach and what targets it wishes to adopt. Whatever the choices, they should be set out so they can be assessed objectively and so performance indicators can be used in conjunction with them. A number of indicators are suggested including waste, energy consumption, energy generation, mains water consumption, CO2 emissions, use of materials from non-renewable sources, commercial vehicle movements, biodiversity, ecologically valuable habitat, whole life performance, health and safety, and training.

"JCT is not attempting to be prescriptive," continued Peter Hibberd, "but rather to provide an appropriate contractual framework for users to adopt, one that will be a constant reminder of the need to address sustainability. The framework recognises that contract conditions play a part but also that contract documentation will deal with sustainability in other ways e.g. specification, drawings. It also acknowledges that each project is unique and each client may wish to set different requirements. Some of those may be absolute but many will be monitored against performance benchmarks."

For Guidance Note - Building a sustainable future together please click here. 

24 April 2008

SUSTAINABILITY CONSULTATION FINISHES

The industry consultation undertaken by the Joint Contracts Tribunal (JCT) - asking for comments on the suggestion that building contracts should include stronger sustainability performance provisions - has finished. (For consultation paper please click here)

The level of response was excellent, with comments lodged by individuals, companies, trade associations, professional bodies and other organisations. There were also several 'collective' responses, representing a large number of views. Architects and lawyers featured highly.

Peter Hibberd, JCT secretary-general, summarised: On simple analysis, it is clear that sustainability is a matter of importance, and a substantial majority of respondents thought that performance could be improved through industry specific documentation.

"Many thought that contract conditions should be specific about sustainability performance, but not too detailed, relying upon other supporting documentation for implementation.

The general view was that these contract clauses must be legally enforceable, and 80 per cent thought that guidance was required for dealing with sustainability in contract documents."

To determine the next steps, JCT has established a working group. Various representatives from its council, which includes the British Property Federation, Construction Confederation, Local Government Association, National Specialist Contractors Council, Royal Institute of British Architects, The Royal Institution of Chartered Surveyors and the Scottish Building Contract Committee, will decide how JCT is going to take this forward.

Peter Hibberd continued: "With over 70 per cent of all building contracts being under a JCT form, what we decide will have a major impact upon the industry. The working group will decide whether we address sustainability in standard contracts, and if we do, what terms to include, and what guidance we provide."

The working group will make its recommendations in the summer, and JCT will announce its intentions in the autumn.