---
title: Sustainable and Circular Economy Principles in Leasing Arrangements for Repairs and Alterations
excerpt: 
date: 2024-03-27T14:18:08Z
modified: 2025-07-28T09:10:35Z
file_type: md
permalink: clauses/sustainable-and-circular-economy-principles-in-leasing-arrangements-for-repairs-and-alterations.html
wpid: 2281
status: publish
type: clause
jurisdiction:
  - USA
maintenance-status:
  - Not maintained
eleventyComputed:
  clause_child_name: Adam’s Clause
  clause_summary: Sustainable and circular economy provisions for the repair, alteration, yielding up and decoration covenants in a lease, which encourage landlords and tenants to re-use goods and materials.
  clause_last_updated_date: 2023-09-19
layout: layouts/clause.njk
---

# Sustainable and Circular Economy Principles in Leasing Arrangements for Repairs and Alterations

## Child’s name

Adam’s Clause

## Summary

Sustainable and circular economy provisions for the repair, alteration, yielding up and decoration covenants in a lease, which encourage landlords and tenants to re-use goods and materials.

## What this clause does

This clause allows landlords and tenants to reduce unnecessary waste and purchase of new products (and the associated greenhouse gas emissions) by prompting them to follow circular economy principles in repair and alterations, prioritising the use of reclaimed, re-used or recycled goods or materials or, where that is not possible, to use sustainable goods or materials.

## Clause Content

*\[Drafting note: Capitalised terms relate to either a defined term in this clause or a defined term in the main agreement/ Lease/ Work Letter that this clause is designed to be inserted into.\]*

**Lease**

**1. Tenant and Landlord Covenants**

The Parties acknowledge and agree that in complying with their obligations under this Lease, each will use \[best/ \[all\] reasonable\] efforts to act at all times in a manner which maximizes the prospect of achieving the Efficiency Objective(s).

**2. Tenant Covenants – Maintenance and Repair**

Tenant shall keep the \[Premises\]\[Property\] in good and substantial repair and condition and when necessary to replace and renew \[any Landlord's fixtures and equipment\] with Materials of an equivalent quality \[and value\] \[to the reasonable satisfaction of the Landlord\]. All maintenance and repairs performed by Tenant shall maximise the prospect of achieving the Efficiency Objective(s) and comply with the Efficiency Standards. Tenant shall cause all contractors engaged by Tenant to comply with Landlord’s rules and regulations for the Project or the Building, including without limitation, the Efficiency Standards.

**3. Tenant Covenants – Decoration**

Tenant shall carry out all decoration in a good and workmanlike manner using good quality Materials \[to the reasonable satisfaction of the Landlord\]. All decorations performed by Tenant shall maximise the prospect of achieving the Efficiency Objective(s) and comply with the Efficiency Standards.

**4. Tenant Covenants – End of Term**

4.1 Tenant shall not be required to remove or restore any Alterations carried out in accordance with Section \[●\] of this Lease, or to restore the Premises to their condition as of the commencement of the Term (collectively, 'Reinstatement') where each of the following applies at the expiration or earlier termination of the Lease:

4.1.1 Any such Reinstatement is not reasonably required by the Landlord having regard to the Landlord's intention in respect of the use or re-letting of the \[Premises\]\[Property\]\[and/or Building\] and the Landlord has notified the Tenant to that effect \[no later than \[three\] months\] prior to the expiration or earlier termination of the Lease; and

4.1.2 Any such Reinstatement would \[materially\] adversely affect the \[Environmental Performance\] of the \[Premises\]\[Property\]\[and/or Building\] \[and/or the Rating Obligation of the \[Premises\]\[Property\]\[and/or Building\]\].

4.2 \[To the extent any equipment, furnishings, improvements, or other items required to be removed from the Premises by Tenant at the end of the term or any earlier termination of the Lease are to be recycled or disposed of, Tenant shall conduct such recycling or disposal in an environmentally sustainable manner and in accordance with applicable Laws and in such manner as to maximise the prospect of achieving the Efficiency Objective(s).\]

**5. Building Operations and Operating Costs**

In operating the Building \[and the Project\], Landlord shall use \[best/ \[all\] reasonable\] efforts to use Materials of an equivalent quality \[and value\].

**Tenant Improvements/ Work Letter**

**1. Carrying out and Completing the Tenant Improvements**

1.1 The Tenant must carry out and complete the Tenant Improvements (and ensure that the Tenant Improvements are carried out and completed):

1.1.1 Using (to the extent reasonably practicable) good quality Materials that are fit for the purpose for which they will be used and to the reasonable satisfaction of the Landlord;

1.1.2 In accordance with a Waste Management Plan and using \[best/ \[all\] reasonable\] efforts to minimize Waste **\[***Drafting note: When using this clause, the drafter may consider the obligation in* [*Francis' Clause*](https://chancerylaneproject.org/climate-clauses/climate-aligned-construction-waste-management/) *(Climate Aligned Construction Waste Management) that repair or renovation triggers the requirement for a Waste Management Plan, regardless of size or complexity of the project*\];

1.1.3 In accordance with Efficiency Standards to mitigate against any Adverse Climate Effect; and

1.1.4 At all times in a manner which maximises the prospect of achieving the Efficiency Objective on Substantial Completion \[and during the operating life\] of the Tenant Improvements \[*Drafting note: When using this clause, the drafter may consider whether the contracts for the Tenant Improvements with building contractors incorporate provisions that support the Work Letter obligations suggested by this clause. (See, for example,* [*Estelle's Clause*](https://chancerylaneproject.org/climate-clauses/net-zero-construction-standards/) *(Climate Standard of Care (Construction)).)*\].

1.2 For the purpose of assessing whether Substantial Completion of the Tenant Improvements has been achieved, the \[Landlord/ Landlord's Agent/ Architect/ Contract Administrator\] shall not issue any certificate to that effect until such time as the Rating Obligation has been met.

1.3 The failure of the Tenant to comply or procure compliance with the provisions of clause \[1.1\] will constitute a \[substantial\] breach of this Work Letter \[and of the Lease\]. \[*Drafting note: There should be a standard default provision linking back to the lease in the Work Letter. A breach of the Work Letter terms is a breach of the lease covenants.* \]

**2. Reinstatement**

2.1 The Tenant shall not be required to remove or restore any Tenant Improvements performed in accordance with this Work Letter (collectively, 'Reinstatement') where each of the following apply at the expiration or earlier termination of the Lease:

2.1.1 Any such Reinstatement is not reasonably required by the Landlord having regard to the Landlord's intention in respect of the use or re-letting of the \[Premises\]\[Property\]\[and/or Building\] and the Landlord has notified the Tenant to that effect \[not less than three months prior to the end of the Term having regard to the Landlord's intention in respect of the use or re-letting of the \[Premises\]\[Property\]\[and/or Building\]\]; and

2.1.2 Any such Reinstatement would \[materially\] adversely affect the \[Environmental Performance\] of the \[Premises\]\[Property\]\[and/or Building\] \[and/or the Rating Obligation of the \[Premises\]\[Property\]\[and/or Building\]\].

**\[Schedule \[●\]: Waste Management Plan\]**

*\[Drafting note: Insert Schedule \[​​●\] if using, pursuant to the definition of Waste Management Plan.\]*
