IChemE Conditions 5th Edition—'Red Book'

Copyright © 2025 LexisNexis
Produced in partnership with Peter Jansen of Sharpe Pritchard
Practice notes

IChemE Conditions 5th Edition—'Red Book'

Copyright © 2025 LexisNexis

Produced in partnership with Peter Jansen of Sharpe Pritchard

Practice notes

The Institute of Chemical Engineers (IChemE) first published the Model Form of Conditions of Contract for Process Plants suitable for Lump Sum Contracts in the United Kingdom in 1968. Further editions were published in 1981, 1995 and 2001. This Practice Note looks at the 2013 5th Edition for lump sum contracts. It amends the 2001 version with updated legislation, and introduces other specific changes.

IChemE’s detailed provisions for testing on completion and commissioning have made it well suited to schemes involving process plants. It is frequently used for projects which are excluded from the definition of 'construction operations' under HGCRA. These include nuclear processing, power generation, water treatment and processing of petrochemicals, steel, food and drink. However, IChemE’s payment provisions are fully compliant with the HGCRA.

The contract comprises general and special conditions, a specification (the plant’s technical definition) and 21 schedules. Special conditions and schedules, including detailed payment terms, are specifically drafted for each contract.

Cooperation

The 5th edition introduces a duty for the parties to cooperate and deal fairly, openly and in good faith

Peter Jansen
Peter Jansen

Legal Director, Sharpe Pritchard

Peter is a highly experienced construction lawyer and has advised clients on projects and dispute resolution both in the UK and internationally.
His advisory work has included assisting governments and government entities, local authorities, lenders, consortia and concession companies, developers, engineers and contractors.
Peter has extensive knowledge of the principal sectors engaged with the construction industry and a close understanding of the forms of contracts (and related legal materials) it uses, their structure and how they function in allocating risk.
His approach is commercial and collaborative, identifying and agreeing objectives for achieving the best and most cost effective solutions for the client. In both contentious and transactional work, this is most often obtained by taking firm, well supported but pragmatic positions.
Peter has lectured in construction law at the University of Hong Kong, is a speaker at numerous conferences and seminars and is a trainer for MBL.

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Jurisdiction(s):
United Kingdom
Related legal acts:
Key definition:
Completion definition
What does Completion mean?

means completion of this agreement in accordance with clause[s] [insert number of the clause(s) dealing with completion of the agreement];

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