To reduce the substantial environmental damage of the built environment, contractors have to comply with an increasing number of environmental building regulations. Apart from the purely practical implications of compliance, there is a perception of a gap emerging from not joining up the construction cycle with management-based solutions for performance development, especially in newer areas of interest such as the environment and sustainability. Research has shown that out of the variety of the procurement routes the UK construction industry offers, there has been a continuous increase in the use of novated Design-and-Build (D&B) over the last 15 years. Many clients regard it as providing value for money and the contractors see it as an opportunity to apply their key strengths in management and coordination of design and construction works. The situation of high adoption of D&B, despite its poor quality and environmental performance, motivated this research to develop a management-based solution for performance improvement from the novated D&B principal contractors’ perspective