A Contractual Approach to Resolving Disputes Arising from Failure to Achieve Green Certification

Green construction is an approach to reducing the environmental impact of resource-intensive construction. Several certification systems have been devised and are globally recognized to provide green building rating frameworks. While a building can be designed to achieve a green rating, the rating is achieved based on the completed facility’s actual measured performance. There had previously been limited attempts to give an in-depth examination of the remedies for unrealized green ratings. As such, this paper addresses this knowledge gap using a multistep research methodology. First, the authors analyzed and classified the nature of damages resulting from failed green certification under the commonly used standard form of contracts for green buildings, namely the ConsensusDocs 310-2011: Green Building Addendum, and the American Institute of Architects (AIA) E204-2017: Sustainable Projects Exhibit. Second, the authors examined relevant judicial dispute cases. Third, based on the contractual and legal analysis, the authors developed a checklist to help the contract parties in allocating and handling damages if the intended green certification is not achieved. Ultimately, the findings of this study will strengthen and support the balanced contractual perspectives of project participants involved in disputes over green and sustainable construction projects.