Where waste management and reduction will be built into the contract, relevant and proportionate performance indicators need to be developed to ensure delivery.
A baseline should be available or required (for example within 6-12 months of start of the contract). If it is impractical to obtain a baseline (for example where waste quantities cannot be tied to the delivery of a specific contract) the focus within contract management should be on continual improvement in waste management practices. Where appropriate KPIs may include:
‘Training records of those requiring waste management training in accordance with the waste hierarchy’
‘% waste diverted from landfill’
‘% end of life products re-used, reconditioned and remanufactured’
‘% of products supplied/ used meeting relevant performance and quality requirements that are refurbished or remanufactured’
‘% of materials that would otherwise be treated as waste, that have been reused’
It may also be appropriate to include improvements in outcomes over the life of the contract and possibly the incentive of profit sharing of waste reduction savings over the contract term.
‘The contractor hereby agrees to increase the rate of diversion from landfill by [x] % year on year over the [x] years of the contract.’
The benefits of the contractual requirement must be quantifiable and measureable; otherwise there is a risk that it may be unenforceable.
The buyer must also consider whether this requirement is core to the contract or a secondary issue, as any remedy for breach of performance may be difficult to quantify. In this case a pre-agreed service credit or maintenance rebate would enable recompense for non-performance where termination of the contract would not be an option.
At the point of potential award there is always scope to reach a voluntary agreement with the supplier that they will work with you to deliver identified (and agreed) sustainable outcomes that can be captured as a contract commitment. Ongoing improvement and innovation can also be built into the management of the contract to further develop the products and services required.
