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• Annex 2: General sustainability contract clauses – tools and templates

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Contract clauses can be used to include environmental considerations at the performance stage (ie, specifying how the contract is to be carried out). The contracting agency can specify the way goods or services are to be supplied and even the method of transport. The supplier is obliged to respect all the performance clauses set out in the contract documents when carrying out the work requested or supplying the products or services covered by the call for tender.

Even though contract clauses are considered to be outside the procedure of the award of contracts, they still need to be set out clearly in the call for tenders. Tenderers should be aware of all the obligations laid down in the contract and be able to reflect this in the price of their bids.

Contract clauses should be linked to performance of the contract and may not result in discrimination in favour of one particular supplier over another.

Examples of areas that may be considered for inclusion in specifications for contracts for the provision of works or services

Delivery and transport of products and tools to the site:

• Have the product delivered in the appropriate quantity. In general terms this means a bulk delivery, as this will be more environmentally efficient in terms of transport impact per item than having smaller quantities delivered more often; specifying a maximum number of deliveries per week or month is another way of achieving the same result. Specify that suppliers seek to reduce the number and frequency of individual deliveries to premises and require drivers to switch their engines off when vehicles are stationary so as to keep fuel usage and emissions to a minimum
• Require that goods be delivered outside peak traffic times to minimise the contribution of deliveries to traffic congestion.

Disposal of used products or packaging from products:

• Require that the supplier takes back (and recycles or reuses) any packaging that comes with the product (this has the double advantage of centralising packaging prior to reuse or recycling and encouraging the supplier to cut down on any unnecessary packaging).

How the service is performed:

• Use measurement indicators to ensure that appropriate quantities of a product are being used to perform a service (eg, cleaning products for a domestic services contract).

Training of supplier staff:

• Train staff in the environmental impact of their work and the environmental/sustainable policy of the agency in/on whose premises they will be working.

Example clauses for general ‘boiler plate' Purchase of Goods or Supply of Services contracts

• The Supplier shall comply in all material respects with applicable environmental laws and regulations in force from time to time in relation to the provision of [Services]. Where the provisions of any such legislation are implemented by the use of voluntary agreements or codes of practice, the Supplier shall comply with such agreements or codes of practices as if they were incorporated into New Zealand law subject to those voluntary agreements being cited in tender documentation.
• Without prejudice to the generality of the foregoing, the Supplier shall:

1. comply with all reasonable stipulations of the Customer aimed at minimising packaging in which any products supplied by the Supplier to the Customer, as part of the performance, of the Services are supplied;
2. promptly provide such data as may reasonably be requested by the Customer from time to time regarding the weight and type of packaging according to material type used in relation to all products supplied to the Customer under or pursuant to the Contract;
3. comply with all obligations imposed on it in relation to any products supplied to the Customer as part of the performance of the Services by the New Zealand Packaging Accord (or subsequent guidance, directives or legislation);
4. IV. label all products supplied to the Customer by the Supplier under the Contract and the packaging of those products, to highlight environmental and safety information as required by applicable NZ legislation;
5. V. unless otherwise agreed with the Customer, insofar as any products supplied under the Contract comprise or include electrical or electronic equipment, manage the said equipment and associated consumables at end of life to facilitate recovery, treatment, recycling and provide any information which the Customer may reasonably require from time to time regarding the costs of such activity;
6. VI. promptly provide all such information regarding the environmental impact of any products supplied or used under the Contract as may reasonably be required by the Customer to permit informed choices by end users;
7. VII. where goods are imported to NZ then for the purposes of the New Zealand Packaging Accord (or subsequent guidance, directives or legislation) the Supplier shall assume the rolled-up obligations for all activities performed outside New Zealand in relation to the goods and the packaging which is used for the containment, protection, handling, delivery and presentation of the goods in addition to any other obligations the Supplier may have pursuant to the said regulations.
8. VIII. The Supplier shall meet all reasonable requests by the Customer for information evidencing the Supplier's compliance with the provisions of this Clause.

Examples of specific sustainable contract clauses used by New Zealand departments

Agency example 1

Design – sustainable development

The [Agency/Department Name]'s goal is for the design to incorporate best international design practice to reduce environmental impact with regard to sustainability, avoidance of environmental pollution, lifecycle energy use, water, wastewater management and solid waste management.

This is to be achieved by addressing the following objectives:

• selection of materials and systems that principally minimise their operational impact on the environment, while coming from sustainable resources, have minimum production environmental effects and avoid environmental disposal implications
• by meeting the [Agency/Department Name's Energy Services Performance Brief] without compromising the [Agency/Department Name Facilities Standards]
• by employing current and proven cost-effective technology and design techniques
• by adopting best practice procedures and addressing whole of lifecycle cost.

Agency example 2

1. The [Agency/Department Name] is committed to purchasing sustainable products, works and services wherever possible. The [Agency/Department Name] will give appropriate weighting to sustainable products, works and services in the purchasing process.
2. The Supplier will perform the services in a manner that gives appropriate regard to the protection of the natural environment. The Supplier will comply with all environmentally related legislation and codes of practices relating to the products and services being offered.
3. The Supplier will ensure any opportunities for improvement in [Agency/Department Name]'s environmental performance, identified by the Supplier's employees or subcontractors are reported to the relevant [Agency/Department Name] Govt3 contact person.
4. Tenderers are to provide details of any eco-label licence (see eco-label licence or similar initiatives.
5. Tenders will include details of energy ratings for appliances.
6. The Supplier shall provide the minimum appropriate level of packaging for the supplied items, consistent with ensuring an adequate level of protection during the storage and delivery phases of those items.
7. As far as is practicable, it is the intention of the [Agency/Department Name] to ensure that the packaging is returned to the Supplier at regular intervals for recycling and reuse.
8. The Supplier shall make due allowance in their Tender for the design and costing of packaging for an appropriate level of recycling and reuse and shall submit details of their packaging proposals with their Tender.
9. The Supplier shall provide products and services with appropriate considerations to: reduced levels of toxicity, end of life disposal, shipping efficiencies and reducing environmental impact during research services.