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25 The practice of integrating environmental sustainability into airport contracts is occurring across the industry, with a num- ber of different mechanisms and processes being used by dif- ferent airport operators. Conditions for contracts are gener- ated by a top-down, formal process, as is typically the case when required by national or state law. Other contractual conditions are generated from the ground up, such as oppor- tunities identified by the airport operatorâs environmental or âgreenâ team. Laws, voluntary standards, and airport policies are actively employed as mechanisms for imposing require- ments related to environmental sustainability on contractors and suppliers. Among the different activities at individual airports a few trends can be identified as to how airport operators are applying environmental considerations into contracting. Similarities are less apparent when it comes to how airports are measuring the impact and reporting the success in envi- ronmental improvements. Airport design and construction contracts have signifi- cant scope to drive environmental sustainability, and the practice of integrating language into these contract types is well-developed and therefore a good starting place for airport operators wanting to embark on a sustainability program. Incorporating language to achieve a Leadership in Energy and Environmental Design (LEED) standard in a design and construction contract is an effective way of ensuring that environmental sustainability is integrated into the project. The environmental sustainability benefits of achieving LEED certification for an airport building are summarized in the San Francisco Terminal 2 example in chapter four. Opportunities also exist within other airport contracts for environmental sustainability to be integrated into the contract language and drive environmental sustainability improve- ments at airports. All of the contract types reviewed could be leveraged by operators to fulfill the following: compliance with environmental law, completion of permit requirements, minimization of environmental impacts, management of environmental impacts, and/or to drive innovative sustain- able improvements at airports. How airport operators imple- ment environmental language into contracts is found to be largely determined by the airport organization. The study found that contract language within many con- tract types serves as a recommendation as opposed to being legally enforceable. Airport operators suggested that this may change over time as the process becomes more developed and the contract language is tightened. Airport operators sur- veyed noted that additional costs may be incurred if enforce- able requirements are made of contractors. For some airport operators however this is not an issue, as they are willing to pay for products or services that will help them meet their sustainability commitments. Several of the airport operators surveyed have a compre- hensive sustainable procurement program in place. These airport operators have an environmental management frame- work or system that drives continual improvements in environ- mental sustainability across all of their operations, including procurement processes. Maintaining ISO 14001 certification or delivering on a public commitment to environmental sus- tainability is the continuing factor driving airport operators to use contracts to help achieve continual environmental sustain- ability improvements. In addition, staff at these airports has an awareness of the airportâs environmental goals and as such ensures this is included in staff responsibilities. Several airport operators with fewer resources that do not have a comprehensive sustainability procurement program in place have focused their efforts on airport contracts, where there is the most opportunity to drive environmental sustain- ability improvements at the airport. These airport contract types were identified as service agreements and tenant and concessionaire lease use agreements, in addition to design and construction contracts, and there are examples of contract language for each of these contract types and provided in the text and the appendix. Contract management and contract monitoring and report- ing is not widespread across the airport industry. Most progress in this area is with design and construction contracts, where there is a significant activity and contracts have integrated environmental sustainability for many years. For design and construction contracts, many airport operators have designated inspectors who regularly monitor contractor performance. The contractorâs performance is reported on a monthly basis and submitted with invoices. If there is contract noncompliance, most airport operators surveyed can apply financial penalties. chapter seven CONCLUSIONS
26 Environmental conditions in other airport contracts are not monitored in the same, comprehensive way. Spot checks carried out by environmental staff at airports are the only other example of contract monitoring for environmental requirements and this is done at only a few airports. There are a number of related subject areas where further research could be beneficial to help encourage more airport operators to utilize contracts as a mechanism to drive envi- ronmental sustainability. Further research into the variety of contract management mechanisms available could be explored, including how incentives or punitive measures could be applied to environmental improvements in airport contracts. In addition, airport operators commented that financial informa- tion, including whole life costs of environmental sustainability would help persuade airport operatorsâ management that more effort should be focused on incorporating sustainability lan- guage into airport contracts. Finally, airport operators also commented that they would find helpful a detailed explanation of how the requirements within the sustainability contract language were established and who at the airport is responsible for implementing them.
