Forms of contract

Changes to the Housing Grants, Construction and Regeneration Act 1996 due to come into effect on 1st October 2011 have required certain amendments to the UK Forms of Contract. The amendments can be accessed at  Edition_reprint_addenda . Anyone planning to enter into a contract on or after 1st October 2011 based on the UK versions of the Forms of Contract should ensure that the amendments are incorporated into their contract.

IChemE has published Forms of contract for over 40 years. There are two contract suites available:

• forms for use in the UK
• forms for international use

Both sets have been drafted by a team of highly experienced professionals who are well familiar with process plant contracts. The contract forms reflect best practice in project delivery in the process industries and recent developments in both law and project implementation. 

Performance-based contracts

Process plants are judged by their performance in operation. Process industry contracts must, therefore, also be performance based. This is the underlying philosophy of the IChemE Forms of contract suite. It is a fundamental difference from much of the wider construction industry.

The IChemE philosophy

The IChemE Forms of contract are structured to promote fairness and teamwork in project execution. They provide a framework where each party to the contract can understand its responsibilities and achieve its objectives without confrontation.

Use of the forms

Primarily drafted for the design and construction of a process plant, IChemE's contracts are used extensively across a range of process industries such as oil and gas, pharmaceuticals, food and fibres and many more. They are equally of use for the provision of any other form of complex, non-process but output-based plant or project.