On November 26, 2024, Construction Dive Quoted Amanda MacVey on how to navigate the sustainability provisions in construction contracts.
According to the article, many construction pros expect a second Trump administration to pull federal procurement funds away from initiatives that support sustainable building. While funding might not be as readily available as in prior years, experts say demand for more environmentally conscious construction isn’t going anywhere and builders need to be equipped to handle sustainability clauses in their contracts.
MacVey explained that there is a tremendous need for sustainable building. As extreme weather exacts an increasingly expensive toll on the built environment, there’s a growing push from private clients, as well as state and local governments, to shift to more sustainable construction, she said. “You have a lot of companies that have made a carbon reduction commitment, and so between city, state and corporate procurement, there’s still critical mass of procurement interest that will not completely vanish as a result of whatever is happening at the federal level,”
When it comes to changes in contracts, MacVey said to expect more project reporting, as owner entities — whether it’s a government or a publicly traded company that does work internationally — seek to comply with European Union or California requirements, for example.
MacVey told Construction Dive, builders need to understand relevant sustainability provisions in contracts to evaluate risk and price their work accordingly. For example, in light of ongoing supply chain issues, contractors should ensure they have the right to substitute and a robust change order provision, with the ability to seek cost and schedule changes as necessary.
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