“Ramping up Green Drafting in Standard Form Contracts is the way forward.”
How to deal with potential breaches within supply chain contracts?
Ramping up Green Drafting in Standard Form Contracts is the way forward! It is anticipated that both standard form and bespoke contracts will become more environmentally friendly to allow for appropriate amendments to contractual wording to be made. Likewise, pre-existing clauses may also require careful review to ensure they do not compromise any new climate change obligations. These considerations will be particularly useful to bear in mind and avoid potential future disputes.
Any new climate obligations are likely to be incorporated as part of the Employer’s Requirements (“ERs”), which in most standard form contracts are annexed as a schedule to the main contract. Notwithstanding, a breach of the ERs usually amounts to a breach of contract which would give rise to some form of legal redress whether it be by way of litigation, adjudication or arbitration. Alternatively, newer suites of standard contracts could feature these clauses as key conditions within the main contract as the green revolution continues to pick up pace. Either way, penalties are likely to follow from breach of any new green obligations.
Employers and legal practitioners alike will have to be mindful that every construction project is different and so clauses may need to be tailored where appropriate. Striking the balance to ensure that contractual obligations are not too narrow or equally too broad in scope will be key to getting it right for maximum enforceability and effectiveness.
