A utility environment is dynamic in nature. It has to deal with a large number of resources of varied types, as well as multiple combinations of those resources. By embedding operator and user level policies in resource models, specifications of composite resources may be automatically generated to meet these multiple and varied requirements. This paper describes a model for automated policy based construction of complex environments. We pose the policy problem as a goal satisfaction problem that can be addressed using a constraint satisfaction formulation. We show how a variety of construction policies can be accommodated by the resource models during resource construction. We are implementing this model in a prototype that uses CIM as the underlying resource model and exploring issues that arise as a result of that implementation. 19 Pages