Performance-based contracts
IChemE's Forms of Contract are specifically prepared for the process industries. Unlike other sectors in which the result of a project is an entity in itself, plant built for the process industries requires extensive completion and performance testing provisions to prove that it will perform to a certain standard.
This performance-based approach is an underlying philosophy of the Forms of Contract suite and is a key distinguishing feature compared to other widely-available contract series. Whilst prepared primarily for the process industries, the Forms of Contract are frequently used in the nuclear, pharmaceuticals, water, tunneling and electrical industries where plant performance is a key factor.
Co-operative approach
The process industries depend on co-operation between all involved parties – each contributing essential expertise to the design, construction and operation of the plant. As a result, the process industries have never been beset with disputes common in other sectors.
The Forms of Contract adopt the basic philosophy that parties should co-operate to achieve the mutual objective of a successful project, but should a dispute arise they include very clear procedures for their resolution. They provide a fair and balanced framework where each party can understand its responsibilities and achieve its objectives without confrontation.