This article highlights the increasing prevalence of green construction practices due to rising energy costs and stringent environmental standards. It cautions that pursuing green building projects without a clear understanding of contract exposures can lead to financial challenges. Green construction, according to the Environmental Protection Agency, involves environmentally responsible and resource-efficient practices throughout a building's lifecycle. The article explains that achieving certification in green construction is possible through programs like LEED (Leadership in Energy and Environmental Design) but emphasizes the rigorous nature of these standards, with small missteps jeopardizing certification. To manage contract exposures in green construction, the article suggests limiting warranties to avoid potential fraud charges, shifting delay risks to the owner through contract clauses, defining consequential damages to cover sustainability-related losses, and retaining the right to cure alleged defects in materials or workmanship.
