Construction Litigation Update - August 2024

Net Zero in Global Construction: The Challenge of Specifying and Allocating Liability

The UN has identified construction sector as the single largest source of carbon emissions worldwide. The pressure is on the industry to move toward Net Zero whether by new renewables projects, reduction of emissions on other projects (e.g., using renewable energy sources to power construction and subsequent operational activities), or retrofitting where appropriate (for example in a residential setting).

The contractual starting point for liability is often familiar standard forms containing well-known general conditions, albeit accompanied by bespoke, and often vast, technical specifications dictating precise performance and functional requirements. But to what extent do currently used contractual provisions require or even incentivise Net Zero aims?