Applying the CO₂ Performance Ladder 4.0 Award Criterion in four Steps

The CO₂ Performance Ladder 4.0 Procurement Guide award criterion helps you apply the CO₂ Performance Ladder in your procurement procedures. To make applying the CO₂ Performance Ladder even easier, the Guide includes a detailed step-by-step plan. This article provides an overview of the four Steps you can take to use the CO₂ Performance Ladder 4.0 as an award criterion in a tender.

Step 1

Include the CO₂ Performance Ladder 4.0 Award Criterion in the procurement

As a contracting authority, you determine for each tender whether applying the CO₂ Performance Ladder as a Best Price-Quality Ratio (BPQR) award criterion is appropriate and aligns with your policy framework. If you decide to use the CO₂ Performance Ladder 4.0 as an award criterion, you must include this in the set of documents in which you inform potential bidders about the procurement.

In these documents, you must specify the following points regarding the CO₂ Performance Ladder 4.0 award criterion:

• The requirements of the CO₂ Performance Ladder 4.0 Award Criterion
  These are all the requirements a contractor must meet, depending on their proposed CO₂ Ambition Level (see box). Requirements concern, for example, having insight into energy consumption and emissions during the project implementation.
• The award method with the award advantage per CO₂ Ambition Level
  You can use various methods to include the Ladder in the evaluation such as a notional discount on the bid price (a percentage or fixed amount), or award points. The tender documents should also state the advantage (e.g. percentage or number of points) per CO₂ Ambition Level: the higher the level, the greater the award advantage.

• The method of proof
  This is how the contractor can prove compliance with the requirements of the CO₂ Performance Ladder award criterion. There are two options: a project-specific declaration or a CO₂ Performance Ladder Certificate (see box).
• The compliance deadline
  This is the deadline by which the contractor must demonstrate compliance with the award criterion, by providing their choice of proof. SKAO recommends one year, but you may choose a different period.
• Penalty clause
  If the contractor fails to prove it meets the requirements (within the agreed term), you may impose a penalty. This is usually a fine proportion to the award advantage received or a fixed amount.

You can include sample texts in the tender documents. These templates are available in the annexes of the Procurement Guide award criterion CO₂ Performance Ladder 4.0.

Step 2

Bidders offer their bid, including their target CO₂ Ambition Level for executing the project

Once the tender is published, you as the contracting authority will receive bids from various parties, each stating their proposed CO₂ Ambition Level. Bidders must also state whether they will demonstrate their chosen CO₂ Ambition Level through a CO₂ Performance Ladder Certificate or a project declaration, and which independent certification body will conduct the audit.

Step 3

Contracting authority awards the contract on the basis of BPQR and records the CO₂ Ambition Level contractually

From the submissions, the winning bid is selected on the basis of the Best Price-Quality Ratio (BPQR). The CO₂ Ambition Level proposed by the winning contractor is then included in the contract, along with all the conditions specified in the tender documents (see Step 1).

Step 4

Contractor executes the contract and demonstrates the CO₂ Ambition Level

The contractor starts executing the project according to the project-specific requirements of the chosen CO₂ Ambition Level. Within the agreed period – usually one year – the contractor must demonstrate compliance with the requirements via a project declaration or a CO₂ Performance Ladder Certificate. For multi-year projects, this must be done annually. If the contractor fails to meet the requirements in time, the contracting authority may impose the predetermined penalty.

The English version of the Procurement Guide for the CO₂ Performance Ladder 4.0 award criterion, tailored to the European context, can be found below. The Dutch version, tailored to the Dutch context, can be found here. The Belgian version (in Dutch and French), tailored to Belgian practice, will be published shortly.

CO₂ Ambition Levels explained

Using the CO₂ Performance Ladder as a BPQR award criterion allows bidders to distinguish themselves on quality through their chosen CO₂ Ambition Level.
These ambition levels are a translation of the three certification Steps from the CO₂ Performance Ladder 4.0 Handbook into project-specific requirements. Bidders must specify at what CO₂ Ambition Level they plan to execute the project.

The CO₂ Ambition Levels indicate:

• the level of ambition regarding CO₂ reduction in the project; and
• the maturity of the project’s management system in ensuring this ambition is achieved.

The English version of the Procurement Guide for the CO₂ Performance Ladder 4.0 award criterion, tailored to the European context, can be found below. The Dutch version, tailored to the Dutch context, can be found here. The Belgian version (in Dutch and French), tailored to Belgian practice, will be published shortly.

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