06 February 2013

Revised Forms of Contract published by IChemE

Forms of Contract

Several years’ work by IChemE’s contract committee was unveiled last night at the launch of the revised editions of the UK Forms of Contract.

The revised suite has undergone a rigorous review to offer new editions that offer greater precision and clarity for the user. The updates take account of improvements in best practice and changes in legislation to conform to new laws such as Local Democracy, Economic Development Construction Act 2009.

They also introduce innovations not seen in other standard forms. Changes include; rewritten insurance provisions, with clear contractual procedures and rewritten provisions for the performance test regime providing greater clarity for the management of these important tests which establish whether or not guarantees have been met. The details of these provisions are a key differentiator from other standard forms of engineering contracts published in the UK.

Other notable changes include; a formal notice procedure, third-party rights provisions, extension of time provisions are enhanced and improved termination procedures.

The guide notes have also been reviewed and now feature flowcharts which set out the underlying logic and procedures contained within clause 35 (performance tests) in all forms except the Brown Book, where these tests are not applicable.

The forms of contract are suitable for process plant contracts such as chemical and nuclear processes, oil and gas, pharmaceuticals and also performance based plant contracts.

IChemE director of publications Claudia Flavell While says “These well-established forms of contract represent best practice in contracting for the design, construction and testing of process plants.  Such is their value they are not just used by the process industries but have enjoyed popularity with the legal profession too”

Simon Lofthouse QC of Atkins Chambers was appointed by IChemE to review all of the books prior to publication.

There are five contracts in the revised suite and all are now available to purchase online at www.icheme.org/shop

The Red Book for lump sum contracts - 5th edition
The Green Book for cost reimbursable contracts – 4th edition
The Burgundy Book for target cost contracts – 2nd edition
The Yellow Book for process, mechanical and electrical engineering subcontracts – 4th edition
The Brown Book for civil engineering subcontracts – 3rd edition

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