IChemE Forms of Contract

Date From: 07 February 2018
Date To: 08 February 2018
Location: United Kingdom
Description: Learn about the IChemE Forms of Contract: their structure, main provisions and features, the key differences between them and how best to apply them to your projects.
Event Type: IChemE Course
Venue: Rugby, UK
Organiser: IChemE
Contact Name: Courses department
Contact Phone: +44 (0)1788 534431
Contact Email: courses@icheme.org

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Overview

Forms of Contract

Contract disputes cost money, take valuable time to resolve and can damage good relations. However, they can be avoided by using the IChemE Forms of Contract. This two-day course will show you how to get the most out of those contracts.

The IChemE Forms of Contract are drafted as performance-based contracts for the design and construction of a process plant and other output-based projects. Specifically addressing the liabilities and testing regimes appropriate for a performance plant, they are used extensively across a range of process industries.

This course examines both the UK and international suites of contracts: their approach to risk and payment, their structure, how they govern work from initial requirements through design to fully commissioned and operational plant, and party liabilities. 

Download a course leaflet here.

Learning outcomes

By the end of this course, you will understand

  • the main provisions, structure and features of the IChemE Forms of Contract and the key differences between them
  • the various stages of a process plant contract
  • the structure and main features of the IChemE Forms of Contract
  • the key procedures to be followed
  • the various certificates to be issued by the project manager
  • the key differences between a lump sum, cost reimbursable and target cost contract
  • how to put a contract together
  • the liabilities of the parties under the contracts

Who will benefit

Anyone preparing or tendering a contract using the forms or those who will manage such a contract as a client, consultant or contractor including project and contract managers, contract administrators, engineers, consultants, consulting engineers, quantity surveyors and graduate engineers. 

Course outline

  • the nature of process plant contracts
  • the structure of contracts based on the UK and international forms
  • the duties of the contractor and the purchaser
  • the various stages of the works
  • the testing regime
  • the role of the project manager
  • cost allocation
  • the difference between price and cost-based contracts and the consequent differences in cost liability
  • the different payment terms in the lump sum Red Book, the cost reimbursable Green Book, and the target cost Burgundy Book

An outline is given of the new Silver Book (for professional services and consultancy), the Yellow and Brown Books (for subcontracts) and the Orange Book (for minor works), and of the dispute resolution procedures. How these matters are dealt with in the international forms is also considered.

The course is run on an interactive basis with plenty of opportunity to ask questions, and includes syndicate work to increase familiarity with the subject matter. 

Fees

IChemE member – £1000 + VAT
Non-member – £1100 + VAT

Course presenters

John Challenger

John is chairman of the IChemE Contracts committee, of which he has been a member for over 30 years, contributing to the development of all their published contracts. 

He is Non-Executive Chairman of WH Partnership, developing the company's business plan and helping to guide it to an increased market presence and increase turnover and capability. Prior to joining WHP, he was a Divisional Director and Divisional Board Member of the nuclear and process division of Mott MacDonald, which he was instrumental in forming. He was also Head of Process Engineering with particular responsibility for the coordination of clean industry and science sector projects undertaken by the company. Before that, he had a range of senior appointments including Managing Director of Shepherd Consulting and Board Member of Shepherd Construction. In 1986 he was also a founding partner of GRC Consultants, a leading bio-pharmaceutical process engineering consultancy, until the company was acquired by the Shepherd Building Group. He also acted as chairman of GRC Projects Ltd.

John has over 40 years' experience in the process industries, including biochemical, pharmaceuticals, food, fine chemicals, oil & gas, petrochemicals, polymers, minerals, nuclear and defence industries. As a project director, project manager and lead design engineer, he has been responsible for the successful delivery of a large number of projects around the world, including USA, Europe, Central Europe, Asia, North Africa, Arabia and the Far East.  He has also acted as project director and senior consultant on a number of projects in the renewables, nuclear, chemical and pharmaceutical industries.  

For several years he acted as an arbitrator or expert appointed by IChemE in a number of disputes and is currently a member of IChemE's Disputes Resolution Committee. He also represented IChemE on the Contract Drafting Committee for the IEE/IMechE forms of contract.

Roger Button

Roger is a member of the committee that drafts and updates the IChemE Forms of Contract. He graduated in Law from Oxford University and qualified as a Solicitor in 1971. For four decades, he has provided legal support for construction and engineering projects, both in the UK and internationally. His work includes drafting and negotiating contracts, general advice and claims resolution. His clients have included employers, main contractors, subcontractors and consultants, as well as government bodies in various countries. Roger is a partner in an English law firm and Head of Middle East Construction at Amereller Legal Consultants, an international law firm with offices throughout the Middle East. He is also a registered arbitrator and adjudicator.


Duration (for CPD recording purposes): up to 11.5 hours11.5 hours CPD

If you are recording mandatory CPD you should refer to your own regulator’s requirements as recognition of CPD hours may vary.

IChemE member? Log your CPD via mycareerpath

 

IChemE is a registered charity in England & Wales (214379), and a charity registered in Scotland (SC 039661).