Sustainability, IS Ratings and Recycled Materials in Tenders

For years the sustainability section of a civil tender was a page about recycling site waste and turning off idling plant, worth two or three per cent, written last and read quickly.

That has changed, and the change is structural rather than rhetorical. On a growing share of Australian infrastructure work, sustainability is a certified rating the project must achieve, backed by evidence collected through delivery — including from subcontractors who never read the head contract.

Why this stopped being optional

Three shifts, all commercial rather than ideological:

  • Formal rating schemes are now mandated for various infrastructure classes across the states — see §03. Where a rating is required, the project must actually achieve it.
  • Sustainability weightings in evaluation have risen, and on rated projects the criterion tests capability to contribute to a rating rather than general good intentions.
  • Recycled and reused material requirements have entered specifications, which converts sustainability from a written response into a pricing and supply question.

The last point is the one that matters most day to day: sustainability now affects what you build with, not just what you write.

The IS Rating Scheme

The Infrastructure Sustainability Council administers the IS Rating Scheme, which assesses the sustainability performance of infrastructure across its life cycle.

The scheme covers all project stages — from planning, design and construction through to operation — making it possible to identify and deliver sustainable outcomes across an asset’s whole life cycle, and it can assess performance at the individual asset level, for portfolios or networks, or at a regional scale.[1]

The rating a civil contractor is most likely to encounter is the IS Design and As-Built rating, which applies to a project’s design and construction phases, under version 2.1 of the tool.[1] IS v2.1 Design and As-Built is described as shifting the bar on sustainability performance while making the tool clearer, more intuitive and more focused on outcomes.[1]

The key phrase for a contractor is As-Built. The design phase sets the intent; the as-built assessment depends on what was actually delivered and evidenced on site — which is where subcontractor data enters the picture.

Where it is mandated

Since 2012, over 180 projects valued at more than $200 billion have registered to undertake an IS Rating certification, and the scheme is mandated for various infrastructure classes across all states, the ACT and into New Zealand.[1]

Two practical implications:

  • Mandating is by infrastructure class and jurisdiction, not universal. Most council-scale civil work is not IS rated. Major state infrastructure frequently is.
  • The threshold is usually project value or class. Establish early whether the project you are bidding is registered for a rating — it changes the sustainability criterion from a general question into a specific one.

This maps closely onto the pipeline articles in this library: the major projects described in our guides to the NSW infrastructure pipeline, Victoria’s infrastructure valley and Brisbane 2032 are exactly the class of project most likely to carry a rating requirement.

The rating types and levels

The scheme is not a single certificate. It covers all project stages from planning, design and construction through to operation,[1] which means the rating a project holds tells you which obligations are live and when.

RatingStage it coversRelevance to a civil subcontractor
PlanningEarly strategic and planning phasesNone directly — but it signals the project intends to rate
DesignThe design phaseSets the commitments your work will have to deliver — materials, methods, targets
As-BuiltThe construction phaseThis is where you sit. Assessed on what was actually delivered and evidenced
OperationsThe operating assetAfter handover, though your as-built records may feed it

The Design and As-Built rating is the one a civil contractor will encounter, and it is currently delivered under version 2.1 of the tool — described by the Council as shifting the bar on sustainability performance while making the tool clearer, more intuitive and more focused on outcomes.[1]

Two points follow that matter commercially.

Design and As-Built are separately assessed. A project can achieve a strong design rating and then fail to deliver it, because the as-built assessment depends on evidence from site. That gap is exactly where subcontractor data becomes critical — and it is why a head contractor pursuing a rating cares a great deal about whether you can report reliably.

Rating levels are achieved, not assumed. The scheme awards levels of performance rather than a pass mark, and a head contractor who has committed to a level in its own tender has a contractual and reputational exposure if the as-built evidence does not support it. That is the pressure behind the reporting requests that arrive in your subcontract.

Given the scheme has seen over 180 projects valued at more than $200 billion registered since 2012, and is mandated for various infrastructure classes across all states, the ACT and into New Zealand,[1] a civil contractor working on major state infrastructure should expect to meet it rather than treat it as exotic.

How a rating reaches a subcontractor

A civil SME will rarely hold a rated head contract. It will frequently hold a package under one, and the rating obligations flow down in a specific way.

What flows downWhat it means in practice
Materials requirementsSpecified recycled content, sourcing constraints, or low-carbon product substitution
Data collectionFuel and energy use, waste volumes and diversion rates, materials quantities and provenance — reported periodically
Evidence standardsDockets, invoices and certificates capable of surviving verification, because the rating is independently assessed
Method constraintsNoise, dust, water and biodiversity controls beyond the ordinary environmental baseline
Reporting cadenceMonthly or quarterly returns into the head contractor’s rating submission

The operational consequence is the same one that arises with skills targets in our guide to local content, skills and training requirements: you have to capture the data as you go, because it cannot be reconstructed. Fuel use, waste tonnages and material provenance for a job that finished three months ago are not recoverable. The same is true of the carbon data clients now ask for during delivery — see our guide to embodied carbon and decarbonisation.

Price the reporting. It is administrative work, and on a rated project it is not optional.

Recycled materials

Recycled material use is the most tangible sustainability lever in civil construction, because civil work consumes enormous quantities of aggregate, fill and pavement material.

Common substitutions include recycled crushed concrete in pavement and fill applications, reclaimed asphalt pavement, crushed glass sand, and recycled plastics in some products. Whether any of them is permitted on your job is a specification question, not a preference. It is also an approvals question, because lawful reuse usually depends on a resource recovery exemption — see our guide to environmental approvals and permits.

  • Check the specification first. Asset owners set what is permitted, in what application, at what percentage. A recycled product that meets a general standard may still be excluded by the owner’s own specification.
  • Confirm testing and conformance obligations. Recycled products often carry additional testing requirements — which is an ITP and quality question, covered in quality management plans and ITPs.
  • Check supply consistency. Recycled material availability and consistency vary by region and by supplier. A saving that depends on an intermittent supply is a programme risk.
  • Where you want to substitute and the specification does not permit it, that is an alternative tender — and sustainability benefit is a genuinely strong argument for one, provided you can evidence equivalence.

Recycled substitution is one of the few sustainability measures that can be commercially positive rather than a cost — which makes it worth raising during the clarification window rather than assuming.

The data you will be asked for

Where a project is pursuing a rating, the reporting obligation is specific rather than general. Knowing the shape of it in advance lets you set up collection on day one instead of reconstructing it later — which, as with skills reporting, is not actually possible.

DataWhere it comes fromSet-up required
Fuel and energy useFuel dockets, supplier statements, telematics where you have itCode fuel to the project, not to the business. This is the most common failure
Waste generated and divertedWeighbridge dockets and disposal receipts, split by stream and destinationRequire the split from your waste contractor before you start
Material quantities and provenanceDelivery dockets, supplier declarations, product certificationAsk suppliers for the documentation up front — retrofitting provenance is very difficult
Recycled contentSupplier declarations and test resultsConfirm what the supplier can actually evidence, not what the brochure claims
Water useMeter readings, carting docketsStraightforward if metered from the start
Workforce and local spendPayroll and subcontract recordsOverlaps directly with local content and skills reporting — collect once, use twice

Three practical points about the reporting itself.

Evidence standards are higher than internal reporting. The rating is independently assessed, so the data has to survive verification. A spreadsheet figure with no source document behind it is not evidence.

Cadence is usually monthly or quarterly. Build it into the same monthly cycle as your claim and your other reporting — see contract administration for civil SMEs — rather than treating it as a separate task that competes for attention.

Price it. On a rated project the reporting is a real administrative cost, and it belongs in your rates rather than in your margin. Contractors who absorb it silently are effectively discounting.

What the road authority specifications actually allow

Recycled substitution is a specification question before it is a sustainability one, and the specifications are more permissive than most contractors assume — but only in defined applications.

Recycled crushed concrete, crushed brick, glass, steel, reclaimed asphalt pavement and crumb rubber products are all commonly used in construction to supplement traditional virgin aggregate and sand extracted from quarries. Specifications for their use in road infrastructure are developed through robust assessment processes to ensure they are used in appropriate applications and that accredited recycled products meet required quality and performance criteria.[2]

Two things follow from that sentence and both matter commercially.

“Appropriate applications” is doing the work. A recycled product approved for subbase on a lower-trafficked road is not thereby approved for base on a highway. The permission is application-specific, and reading it as a general permission is how a substitution proposal gets rejected.

“Accredited recycled products” means the supplier matters as much as the material. The product must meet the quality and performance criteria, which is a supplier-evidence question — see §08.

JurisdictionWhere the permission is documented
VictoriaCode of Practice RC 500.01 governs recycled material use, with the 400 Series Standard Sections covering reclaimed asphalt pavement in asphalt depending on the amount of RAP and the mix type; Standard Section 813, base and subbase for lower-trafficked roads, was developed to allow recycled crushed glass in pavement applications[2]
QueenslandTransport and Main Roads Technical Note TN193, Use of recycled materials in road construction, alongside the MRTS pavement specifications[2]
New South WalesTransport for NSW QA specifications for granular base and subbase materials govern permitted recycled content
CouncilsFrequently adopt the state road authority specification, sometimes with local amendments. Confirm rather than assume

One structural problem worth knowing about, because it explains a genuine frustration: a recognised barrier to recycled material use is inconsistency between local and state specifications, and the absence of nationally harmonised performance-based standards.[2] A product accepted in one jurisdiction may not be accepted in the next, and a contractor working across borders cannot assume portability.

The practical sequence for a substitution: identify the application, find the governing specification and the permitted percentage, confirm the supplier can evidence conformance, then propose it. Where the specification does not permit it and you believe it should, that is an alternative tender — and sustainability benefit plus a documented specification precedent elsewhere is a genuinely strong basis for one.

Suppliers, EPDs and provenance

On a rated project, the sustainability performance of what you build with is assessed on documentation from your suppliers — which means your supply chain becomes part of your compliance obligation.

What you will be asked to produce:

  • Product provenance — where the material came from, evidenced by delivery documentation rather than assertion.
  • Recycled content declarations — the actual percentage, from the supplier, capable of being verified.
  • Environmental Product Declarations where the project requires them. An EPD is a third-party-verified statement of a product’s environmental performance across its life cycle, and on rated projects it is increasingly the accepted evidence for materials claims.
  • Conformance test results demonstrating the recycled product meets the specification criteria.
  • Transport distances, where the project is measuring embodied transport emissions.

Three practical points that save money.

Ask suppliers what they can evidence before you commit to a claim. A supplier’s marketing material and a supplier’s verifiable declaration are different things. A commitment made in a tender on the strength of the former is a commitment you may not be able to deliver.

Provenance cannot be reconstructed. A load delivered without documentation is a load with no provenance, permanently. This is the same evidentiary trap as the pre-work records in a latent conditions claim — the moment passes and cannot be recovered.

Attribute correctly. A supplier’s EPD or certification belongs to the supplier. You can say you used a certified product; you cannot present their credential as yours. That distinction matters both for credibility and for the greenwashing exposure discussed in §11.

Writing a credible sustainability response

The failure mode is aspiration. Most sustainability responses describe commitment rather than practice, and evaluators have read hundreds of them.

WeakStrong
“We are committed to environmental sustainability.”“On [project], 82% of demolition material was diverted from landfill, evidenced by weighbridge dockets.”
“We will minimise waste.”“Waste is segregated on site into three streams; diversion is reported monthly from disposal dockets.”
“We use recycled materials where possible.”“We propose recycled crushed concrete for subbase in the areas the specification permits, from [supplier], with test results provided per lot.”
“Our plant is well maintained.”“Fleet emissions standards are listed in the plant schedule; fuel use is recorded per machine via telematics.”

The pattern is the one that runs through this whole library: a number, a source and a verification method beat an intention. The same technique as our guides to addressing selection criteria and writing a CEMP — and your CEMP is the natural evidence base for much of this content.

The greenwashing risk

Overstated environmental claims carry a different kind of risk from ordinary tender puffery. Beyond the evaluation consequences, unsubstantiated environmental claims can attract consumer-law attention, and they are increasingly scrutinised.

  • Claim only what you can evidence with records you actually hold.
  • Avoid unqualified absolutes — “carbon neutral”, “zero waste”, “fully sustainable” — unless independently certified and current.
  • Attribute correctly. A supplier’s certification is theirs. You can say you use a certified product; you cannot adopt their credential.
  • Keep the evidence. On a rated project it will be verified, and on any project it may be tested at debrief or audit.

This is the same discipline applied across this library to win-rate and performance claims: credible beats inflated in front of a procurement-literate buyer, and it does not create a liability.

What a small contractor can realistically claim

A fifteen-person civil business is not going to produce a corporate decarbonisation strategy, and should not pretend to. What it can evidence is operational and specific.

  • Waste diversion with actual percentages from dockets.
  • Recycled material use on named past projects, with quantities.
  • Local sourcing — genuinely lower transport emissions, and it supports local content responses at the same time.
  • Fleet emissions standards and fuel management, drawn from the plant and equipment schedule.
  • Environmental performance record — incidents, notices, and audit results. A clean record over years is strong evidence.
  • Certified environmental management under ISO 14001, if held — see the prequalification trifecta.
  • Willingness and capability to report into a rated project’s data requirements — which on a rated job is one of the most useful things you can offer.

That last point is the practical differentiator for a subcontractor. A head contractor pursuing a rating needs reliable data from every package. A subcontractor who can demonstrably supply it is solving a problem for them — the same logic set out in subcontracting to Tier 1 civil contractors.

A worked response

What a credible sustainability response looks like for a fifteen-person civil contractor, criterion by criterion. This is deliberately unambitious — everything in it is evidenced from records an ordinary business already holds.

What is askedWhat to writeEvidence behind it
Waste management“Waste is segregated on site into three streams. On [named project], 82% of demolition material by weight was diverted from landfill. Diversion is reported monthly from weighbridge dockets.”Weighbridge dockets and disposal receipts
Materials“We propose recycled crushed concrete for subbase in the applications the specification permits, sourced from [supplier], with conformance test results provided per lot.”Specification clause, supplier declaration, test results
Emissions and energy“Major plant meets [emissions standard]. Fuel use is recorded per machine and coded to the project. Idling policy applied and monitored through prestart records.”Plant schedule, fuel dockets, telematics if held
Local sourcing“Aggregate is sourced from [quarry], 14km from site, reducing haul emissions against the nearest alternative at 61km.”Supplier arrangement and haul distances
Environmental management“Environmental management is certified to ISO 14001. Over the last three years we have recorded no environmental incidents or notices across [n] projects.”Certificate, incident register, audit records
Reporting capability“We report fuel, waste and materials data monthly in the format required, and have done so on [project] under an IS Design and As-Built rating.”Prior reporting returns

Note what is absent: no commitments to carbon neutrality, no aspirational policy statements, no adoption of a supplier’s certification. Every line names a number, a source and a verification method — the pattern that runs through every scored response in this library, and the one set out in our guides to addressing selection criteria and writing a CEMP.

The last row is the differentiator on a rated project and the one almost nobody writes. A head contractor pursuing an IS rating has a certification exposure that depends on data from every package. A subcontractor who can say, with evidence, we have done this reporting before and we can do it again is solving a problem the evaluator actually has — which is the same logic set out in our guide to subcontracting to Tier 1 civil contractors.

If you have never worked on a rated project, say so plainly and describe the systems you would use. An honest statement of capability with a credible method beats an implied experience an evaluator can check.

When the project is not rated

Most council-scale civil work carries no formal rating. That does not mean sustainability is absent from the evaluation — it means it appears in a different and usually vaguer form, which is both an opportunity and a trap.

What you are likely to meet instead:

FormWhat it looks likeHow to answer it
A weighted criterion“Environmental and sustainability approach”, worth 5–10%Named projects, actual percentages, verification method. See §13
A council sustainability or climate policyReferenced in the tender, sometimes with expectations rather than requirementsRead it and answer against its own language. Councils reward contractors who have clearly read the policy
Specification-level requirementsRecycled content percentages, waste diversion targets, tree protection, sediment controlsThese are contractual, not aspirational. Price them
Nothing at allNo sustainability criterionDo not volunteer a page nobody asked for — but a sentence in the methodology costs nothing

Two strategic points for a contractor whose pipeline is mostly unrated work.

An unrated criterion is easier to win on, not harder. Where the criterion is general and most responses are aspirational, a response carrying real numbers from real projects stands out sharply. The bar in this section of a council tender is genuinely low, and clearing it costs you an afternoon of pulling dockets.

Build the evidence base on unrated work so it is there when you need it. Waste diversion percentages, recycled material quantities, fuel data and a clean environmental record accumulate over years. A contractor who starts capturing them now can answer a rated project’s questions in three years; one who starts when the rated project appears cannot.

The practical minimum for a business with no sustainability system at all: segregate waste and keep the dockets, record fuel by project, and keep an environmental incident register. Three habits, close to no cost, and between them they answer most of what an unrated tender asks and a meaningful share of what a rated one does.

One caution that applies to unrated work particularly. Because the criterion is vague, the temptation to overclaim is strongest — and the greenwashing exposure discussed in §11 does not go away because nobody is formally verifying. Claim what you can evidence, on unrated work as much as rated.

Checklist

  • Is the project registered for an IS rating, and at what stage?
  • What sustainability data will you be required to report, and how often?
  • Does the specification permit recycled materials, in what applications and at what percentages?
  • What additional testing do recycled products attract?
  • Is recycled supply consistent and available in your region?
  • Have you priced the data collection and reporting overhead?
  • Is every claim in your response supported by a record you hold?
  • Have you avoided unqualified absolute claims?
  • Does your plant schedule carry the emissions data your response references?
  • Which rating type applies — Design, As-Built, or both — and at what committed level?
  • Is fuel coded to the project rather than the business?
  • Can your waste contractor provide diversion data split by stream and destination?
  • Have you asked suppliers for provenance and recycled-content documentation up front?
  • Is the reporting cadence built into your monthly cycle, and priced?
  • Which specification governs recycled content for this application, and at what percentage?
  • Can your supplier evidence recycled content and provenance, not just claim it?
  • Does the project require Environmental Product Declarations?
  • Are you attributing supplier certifications correctly rather than adopting them?

The short version

  • On rated projects sustainability is a certification the project must achieve, not a written commitment.
  • The IS Rating Scheme is mandated for various infrastructure classes across all states and the ACT — check whether your project is registered.
  • Obligations flow down as materials requirements, data collection and evidence standards. Capture data as you go; it cannot be reconstructed.
  • Recycled substitution is the main lever, and it is a specification question before it is a preference.
  • A number, a source and a verification method beat any statement of commitment.
  • Being able to reliably supply rating data is a genuine differentiator for a subcontractor.

References

This guide is general information for Australian civil construction businesses and is not legal or environmental advice. Rating scheme requirements, mandating thresholds and specification provisions for recycled materials change and differ between jurisdictions and asset owners. All examples are illustrative. Always work from the current scheme documentation and the project specification.

  1. Infrastructure Sustainability Council — IS Rating Scheme and IS Design & As-Built Rating (v2.1) (iscouncil.org); Roads & Infrastructure Magazine — Infrastructure Sustainability Council updates sustainability benchmark. The IS Design and As-Built Rating as the Infrastructure Sustainability Council rating applying to an infrastructure project’s design and construction phases, forming part of the IS Rating Scheme; the scheme covering all project stages from planning, design and construction to operation, making it possible to identify and deliver sustainable outcomes across an asset’s whole life cycle, and able to assess sustainability performance at the individual asset level, for portfolios or networks, or at a regional scale; the position that since 2012 over 180 projects valued at more than $200 billion have registered to undertake an IS Rating certification, with the scheme mandated for various infrastructure classes across all states, the ACT and into New Zealand; and the description of IS v2.1 Design and As-Built as shifting the bar on sustainability performance while making the tool clearer, more intuitive and focused on outcomes.
  2. Victoria’s Big Build / ecologiQ — Recycled Materials in Road Infrastructure and Recycled Materials in Road Infrastructure — Reference Guide (bigbuild.vic.gov.au); Queensland Department of Transport and Main Roads — Technical Note TN193: Use of recycled materials in road construction and MRTS102 (tmr.qld.gov.au); Australian Council of Recycling — Standards to facilitate the use of recycled material in road infrastructure; Sustainability Victoria — Recycled glass for new pavements and roads. Recycled crushed concrete, crushed brick, glass, steel, reclaimed asphalt pavement and crumb rubber products commonly used in construction to supplement traditional virgin aggregate and sand products extracted from quarries; specifications for the use of recycled products in road infrastructure developed through robust assessment processes to ensure they are used in appropriate applications and that accredited recycled products meet required quality and performance criteria; VicRoads use of recycled materials under Code of Practice RC 500.01 and the 400 Series Standard Sections for reclaimed asphalt pavement use in asphalt depending on the amount of RAP and mix type, and Standard Section 813 (base and subbase for lower trafficked roads) developed for recycled crushed glass inclusion in pavement applications; and the identified barrier of inconsistency in local and state specifications and the need for nationally harmonised performance-based standards.

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