IChemE Conditions 5th Edition—'Red Book'
Produced in partnership with Peter Jansen of Keystone Law
IChemE Conditions 5th Edition—'Red Book'

The following Construction guidance note Produced in partnership with Peter Jansen of Keystone Law provides comprehensive and up to date legal information covering:

  • IChemE Conditions 5th Edition—'Red Book'
  • Cooperation
  • Contractor's obligations
  • Purchaser and project manager
  • The works
  • Variations
  • Care of the works and insurances
  • Completion and testing
  • Performance tests
  • Acceptance
  • more

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 with each other and the parties must mutually disclose relevant information to each other (clause 2). For further information on these types of clause and their enforceability, see Practice Note: Good faith in construction contracts.

Contractor's obligations

The contractor must complete the works so that