No comments The IChemE contracts covering procurement for chemical process plants have had their first update in years, bringing some important modifications Early last week, the Institution of Chemical Engineers IChemE unveiled new editions of its Forms of Contract for Process Plants. The revisions, the first for several years, overhaul its core UK contract suite, which comprises three main contracts Red Book, Green Book and Burgundy Book, which differ in pricing mechanisms together with two sub-contracts Yellow Book and Brown Book. It is likely that the international editions of the IChemE Forms of Contracts, first published in , will also be updated. The contracts are designed for the procurement of process plants, where materials are transformed through a chemical, biological or physical process. Naturally, this covers a wide range of different industrial facilities from oil refineries, power plants and food manufacturing plants to pharmaceutical production plants and desalination plants.
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The main differences centre on: Risk allocation. Risk allocation The main differences are: Design. Under IChemE, the purchaser retains responsibility for the accuracy of the materials it provides. Fitness for purpose. Under FIDIC, the works must be fit for the purpose for which they are intended as defined in the contract. IChemE imposes no express fitness for purpose obligation and whether any such obligation will be implied is dependant on the governing law of the contract.
However, FIDIC unlike IChemE imposes an express time bar for claiming time or money, after which the contractor forfeits its entitlement to make a claim. Ground conditions. Under FIDIC, the contractor takes responsibility for all ground risk, whereas, under IChemE, the purchaser only bears the risk of ground conditions that are not reasonably foreseeable. This contrasts with the project manager under IChemE, who is required to act impartially between the purchaser and contractor.
Contracts for the design and construction of process plants tend to include extensive testing procedures both pre and post completion to ensure that the reliability of the plant is fully tested and the project delivers a fully functioning process facility.
IChemE offers a detailed testing regime with separate tests for completion of construction and takeover. In addition, IChemE has comprehensive provisions for testing after completion.
In terms of its testing regime, FIDIC requires the project to pass various tests on completion, prior to take over. It also contains an option for tests after completion, which parties can expressly include in the contract. Therefore, where the parties choose FIDIC, they should give particular attention to the testing regime.
Depending on the nature of the project in question, the testing regime may need to be amended to ensure that it provides sufficient testing at all stages pre and post completion of the works.
However, there are significant differences in key provisions. Which contract is the most appropriate will depend on the type of project, its particular circumstances, funding considerations and the specific needs of the parties and their funders. The most informed choices will be made where parties understand the differences between the two contracts and the reasons for them.
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IChemE contracts: All part of the process
Mission[ edit ] The mission of this organisation is to build and support a community and network of professionals involved in all facets of the Chemical Engineering discipline. Membership grades and post-nominals[ edit ] IChemE has two main types of membership, qualified and non-qualified, with the technician member grade being available in both categories. Entitling the holder to the post-nominal FIChemE and is a chartered grade encompassing all the privileges of Chartered Member grade. Chartered Member — Internationally recognised level of professional and academic competence requiring at least 4 years of field experience and a bachelors degree with honours. This also entitles the individual to register as a European Engineer with the pre-nominal Eur Ing. Typically this is the grade held by those working towards Chartered Member level or those graduates working other fields. This grade can also lead to the grade of Incorporated Engineer IEng for those with some field experience but which falls short of the level required for Chartered Member grade.
Drafted by a team of legal and industry professionals, our contracts address the complex way in which the purchaser, contractor and subcontractor divide responsibility for creating new process plants and working on existing structures. As the contract framework is fair and balanced, each party can easily recognise its responsibilities and achieve its objectives without confrontation, which provides a time and cost effective solution for all parties involved. Process plants are judged by their performance in operation, therefore our process industry contracts are performance based. This philosophy ensures our contracts stand apart from the many others used in the wider construction industry. Key features and formats There are currently two suites of contracts available, one suitable for the UK market and another for international use. Each contract contains a model form of agreement and general conditions, supplemented with detailed guide notes to assist the user in preparing a contract. Get the most out of these contracts Our Forms of Contract training course will help you understand the structure, provisions and features of the IChemE forms and show you how to apply them to your projects.
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