---
title: Set a Carbon Budget for Construction Projects
excerpt: 
date: 2024-08-22T08:57:25Z
modified: 2025-07-23T11:29:07Z
file_type: md
permalink: clauses/set-a-carbon-budget-for-construction-projects.html
wpid: 5799
status: publish
type: clause
jurisdiction:
  - Australia
maintenance-status:
  - Not maintained
practice-area:
  - Real estate and property
sector:
  - Construction and infrastructure
  - Manufacturing and industrials
  - Real estate
eleventyComputed:
  clause_child_name: Maeve’s Clause
  clause_summary: This clause inserts a formal ‘carbon budget’ alongside the traditional financial budget for construction projects.
  clause_last_updated_date: 2024-09-10
layout: layouts/clause.njk
---

# Set a Carbon Budget for Construction Projects

## Child’s name

Maeve’s Clause

## Summary

This clause inserts a formal ‘carbon budget’ alongside the traditional financial budget for construction projects.

## What this clause does

Sets a carbon budget for materials used in and for construction projects and reduces greenhouse gas (GHG) emissions by incentivising parties to adopt more sustainable practices and materials.

## Clause Content

**Additional clauses**\*

\* \[*Drafting note: The clauses below have been prepared for inclusion in an Australian Standard design and construct or construct only contract (for example, AS 4300-1995 or AS 2124-1992). Capitalized terms which are defined in the Australian Standards appear in \[parentheses\] where first appearing below. If these clauses are not being used in an Australian Standard contract, the drafter will need to modify or replace these terms.*\]

**Carbon Budget for Materials**

2.1A.1 The Contractor must use best endeavors to ensure that the Embodied GHG Emissions in the materials used to construct and/or which are incorporated into the Works do not exceed the Carbon Budget.

2.1A.2 Without limiting clause 2.1A.1, in selecting materials for use in the Works, the Contractor must:

(a) not, without approval of the \[Principal OR \[Principal's Representative\]\] (which may with granted or withheld in its absolute discretion), select any Prohibited Materials for use or incorporating into the Works or for the purpose of carrying out the work under the Contract;

(b) prior to the commencement of the Works, submit a list of the intended manufacturers and suppliers to the \[Principal OR Principal's Representative\], together with a summary of the Climate Impacts of the relevant materials against the Carbon Budget (as applicable). In preparing the list of intended manufacturers and suppliers, the Contractor must take into account (without limitation) the following considerations:

(i) the Climate Impacts of the materials;

(ii) source of supply of and transport for the materials (and whether the materials could be sourced closer to the (Site));

(iii) innovation;

(iv) whether the materials are reclaimed or recycled;

(v) durability of the materials; and

(vi) if applicable, electrification of appliances;

(c) liaise with the \[Principal OR Principal's Representative\] with regards to the list of intended manufacturers and suppliers. The \[Principal OR Principal's Representative\] may provide comments on the list and the Contractor must have due regard to comments provided by the \[Principal OR Principal's Representative\] and update the list of intended manufacturers and suppliers to address these comments; and

(d) \[without limiting the Contractor's obligations in clause \[●\]\]\*, use best endeavors to ensure that the materials are sourced from manufacturers and suppliers located as close to the Site as reasonably practicable.

\* \[*Drafting note: If applicable, this clause should cross-refer to relevant provisions of the Contract which relate to procurement of materials. For example, in Victoria, the Local Jobs First Policy obligations for construction and supply contracts which are subject to the Ministerial Directions for Public Construction Procurement.*\]

2.1A.3 The Contractor must:

(a) obtain, keep and maintain accurate and complete records of the Climate Impacts relating to the manufacture, procurement, transport and use of materials that are selected, used or incorporated into the Works);

(b) provide those records and any other information relating to the Climate Impacts of the goods or materials relating to the Works to the \[Principal OR Principal's Representative\] as soon as possible, but in any event within \[*insert relevant time period – for example, 10 (ten) days*\] of such a request being made, including reuse, demountability, recycling and sustainable sourcing of materials which are selected or used in carrying out the Works; and

(c) provide the \[Principal OR Principal's Representative\] with a report,\* on a monthly basis, with the actual Climate Impacts of the materials, by reference to the levels set out in the list of intended manufacturers and suppliers and the projected impact of the same for the remainder of the Works assessed against the Carbon Budget.

\* \[*Drafting note: This report may be included in a monthly report or update that the Contractor is already required to provide under the Contract. Alternatively, users may also wish to impose an obligation on the Contractor to report on the Climate Impacts and tracking against the Carbon Budget at relevant project meetings.*\]
