IChemE Forms of Contract

Topic Contract and Project Management

CPD Hours 11.5


This course is also being delivered online – view details >>

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. 

All delegates will receive paperback copies of The Red Book, The Silver Book and The Yellow Book.

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. 


Discounts are available to companies booking more than one place:

  • 2 places — 5% discount
  • 3 places — 10% discount
  • 4 or more places — 15% discount.

Bookings must be made at the same time to receive the discount.

In-company training

This course is also available as an in-company course (face-to-face or online) where content can be customised to meet your organisation's specific needs and delivered on a date/location that suits your requirements. Contact us for more information.

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