This master thesis grew out of collaborative work between the TU Wien and the STRABAG group. It discusses the legal framework of sustainable and energy-efficient construction in the European Union and attempts to describe current thought on sustainability aspects in Austria and Germany. The thesis aims to analyse legal requirements as well as relevant regulations in order to gain insight into the handling of sustainable procurement. Additionally, a study of sustainability in urban devel-opment is discussed using a Swiss example. The thesis begins with a discussion of legal framework for sustainable construction on the EU level. The European directives on energy efficiency aim toward the binding introduction of Nearly Zero-Energy Buildings and an increase in the percentage of energy-oriented building refurbishments. The Construction Products Regulation of 2013 introduced a new basic requirement for sustainable use of resources. Public procurement is regulated by Directive 2014/24/EU and includes sustaina-bility requirements as well as requirements for procurement according to the best bidder principle. In Austria, public procurement in construction business is subject to the Federal Procurement Act (Bundesvergabegesetz). A new version of the law should come into effect in 2018 because of the Public Procurement Law Reform Act. This will enable the determination of the most cost-efficient bid using established award criteria or life cycle cost models. Furthermore, OIB guideline 6 must be followed in all energy efficiency considerations of planning and the IEAA tool can be considered. In Germany, public work contracts are subject to the Construction Contract Procedures (Vergabe- und Vertragsordnung für Bauleistungen). Specifications on sustainability are contained in several different legal documents and regulations. The Guidelines for Sustainable Building (Leitfaden Nach-haltiges Bauen) were issued to cover future-oriented construction of public buildings. The tools SNAP and LeNA are available to increase the consideration of sustainable aspects in planning stage. Additionally, Zurich has a holistic sustainability concept, which aims to reduce personal consump-tion of primary energy and emissions of greenhouse gasses significantly. Urban building efficiency measures can particularly be seen in residential areas and in the energy sector. Entire communities can be certified for energy efficiency and sustainability, because of the ‘2000 Watt Sites initiative. Currently, the European Union is increasingly concentrating on the themes of energy efficiency and the best bidder principle. EU requirements have been integrated into Austrian and German law and principles of sustainability have been made more precise through other rules. Further efforts by public and private stakeholders are nevertheless necessary to achieve climate-neutral construction. The implementation of the best bidder principle, energy savings in construction and refurbishment, as well as an increase in building certification lead the way to a future-oriented building sector.