SCI-Network is a network of European cities and other public authorities working together to find new, innovative and sustainable solutions for their public construction projects. In order to procure sustainable and innovative construction solutions, public authorities must have access to suitable financial and contractual instruments. The pressure on public finances means that many authorities are examining ways of funding construction projects which draw upon either the private sector or specific European programmes. Approaches such as energy-performance contracting, public-private partnerships and concessions for construction works/services have become mainstream in some Member States, while in others they are less common. The procurement procedures applied to source private sector partners also vary widely. This report examines a number of innovative approaches to the financing and contracting of public sector construction projects. The areas of focus have been chosen based on the interests expressed by participants in the Working Group, representing a range of local and regional authorities from different parts of Europe. The specific topics covered in this report are European funding and financing instruments for sustainable retrofitting of public buildings - what is available, scope of application and eligibility, impact on procurement process and distribution of funds; and energy performance contracting, public-private partnerships and works/services concessions - which models are in use for sustainable/innovative construction, problems encountered, best practice.