Caroline's Clause

Climate-Aligned Construction Waste Management

Contractual obligations in respect of the usage of materials and waste management to ensure consequential GHGs are minimised.

Updated: Not maintained
Jurisdiction: USA

What this clause does

Incorporating climate-aligned waste management practices into construction contracts can:

  • reduce landfill waste and associated greenhouse gas emissions
  • avoid pollution to waterways and other environmentally sensitive areas
  • allow contractors and building owners to meet sustainability targets.

Clauses

1. Site Waste Management

1.1 The Contractor shall use its best efforts to minimize Waste Materials. The Contractor shall ensure that Waste Materials are managed efficiently in accordance with applicable law and accepted construction standards and that:

1.1.1 Waste Materials are converted to Diverted Waste whenever possible and in accordance with [the EPA's Best Practices for Reducing, Reusing, and Recycling Construction and Demolition Materials OR other standards]. [If there is a conflict between the standards to be applied for converting Waste Materials to Diverted Waste, the most stringent standard shall apply.]

1.1.2 Waste Materials that cannot be converted to Diverted Waste are disposed of safely in accordance with [applicable state or local regulations OR other standards]. [If there is a conflict between the standards to be applied for safely disposing of Waste Materials, the most stringent standard shall apply.]

[Drafting note: at the time of publication of this Clause, the EPA was developing a labeling program for low embodied carbon construction materials (https://www.epa.gov/greenerproducts/label-program-low-embodied-carbon-construction-materials). Users of this Clause may want to make appropriate revisions to refer to the EPA's program upon its implementation.]

1.2 The Contractor shall consider and may propose amendments to the Work that would result in additional reductions of Waste Materials where possible. If the Owner approves the proposed amendments, the Parties shall execute a written Change Order incorporating the amendments before additional Work is performed.

1.3 The Contractor shall undertake the Work in accordance with the Site Waste Management Plan, as amended from time to time. The Site Waste Management Plan, as amended from time to time, is incorporated into and made part of this Contract.

1.4 The Contractor shall ensure that the Site Waste Management Plan is kept up to date through completion of the Project. Where a change to the Site Waste Management Plan is warranted:

1.4.1 The Contractor shall, after consultation with the Owner, update the Site Waste Management Plan as necessary and provide an updated draft to the Owner for approval.

1.4.2 The Owner may propose additional changes to the Site Waste Management Plan, which, if accepted by the Contractor, shall be incorporated into the Plan. If the Contractor does not accept the Owner's changes, the Owner may either accept or reject the draft provided by the Contractor.

1.4.3 If the Owner does not respond or object to Contractor's notice of a proposed change to the Plan within [number] business days from receipt, the draft revised Plan as submitted for approval will be deemed approved.

1.5 The Contractor shall retain records of its compliance with the Site Waste Management Plan [in accordance with the records retention provisions of Section [•] of this Contract OR for a period of [number] years after completion of the Project]. The Contractor shall make electronic copies of the records available to the Owner promptly on request. The Contractor shall provide all additional information that the Owner reasonably requests regarding the diversion and disposal of Waste Materials within a reasonable time.

[Drafting note: this section requires the contractor to maintain records of its compliance with the Site Waste Management Plan for a designated period. Options allow either referring to records retention requirements included elsewhere in the contract or specifying a fixed period. Counsel should ensure that the retention period is consistent with any applicable statute of limitations for claims related to environmental violations.]

[Drafting note: the user should have remedies available if the Contractor breaches the requirements of this Clause. This Clause assumes the user's main agreement establishes the remedies that would apply, Otherwise, the user should add language to provide the available remedies.]


Exhibit A

Site Waste Management Plan

[Drafting note: because the types of construction projects and related waste vary, a model plan is not included with this Clause. Users should develop a plan that considers:

  • the types of waste that will result from demolition, new construction, site modifications, renovations, and other work
  • the alternatives for diversion and disposal
  • the entity's overall sustainability goals.

Users may either:

  • create the initial Site Waste Management Plan in conjunction with project managers and consulting engineers and architects and include the plan in project specifications
  • develop the Site Waste Management Plan through negotiations with the contractor after the contract has been awarded.

The following resources may be helpful in developing a Site Waste Management Plan:

Notes on using this clause

[Drafting note: capitalized terms relate to either a term defined in this clause or a defined term in the main agreement that this clause is designed to be inserted into. This Clause assumes that the main agreement includes and defines terms such as 'Contractor' and 'Work.' Since terminology may vary, users may substitute alternate terms consistent with the terminology they use in the main agreement.]

Diverted Waste means all Waste Materials that are recycled, reused, repurposed, salvaged, composted, or otherwise diverted from landfills or incineration.

EPA means the United States Environmental Protection Agency.

Site Waste Management Plan means the site waste management plan in the form attached hereto as Exhibit A, or as updated by the Contractor and approved by the Owner.

Waste Materials means trash, refuse, spoil, waste, debris, materials, goods, or surplus materials generated by, used in undertaking, or allocated to the Work, but not incorporated into the Work at Substantial Completion.

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