The following Construction guidance note Produced in partnership with Peter Jansen of Keystone Law provides comprehensive and up to date legal information covering:
This practice note covers the 2013 editions of the IChemE Yellow (4th Edition) and Brown Book (3rd Edition) forms of subcontract. These forms are intended to be used with the three similar forms of IChemE main contracts (the Red, Green and Burgundy Books) for process plants. See also the practice notes on those ‘main contract’ forms (ie contracts between contractors and purchasers based on them for the entire plant). These two subcontracts cover subcontract civil engineering works in the Brown Book and, in the Yellow Book, ‘subcontract plant’ provided by a subcontractor. A detailed description of the subcontract works should be set out in Schedule 1 of the Yellow and Brown Books.
The subcontract works are a part of the main contract works (and subcontract plant may be a component of main contract plant) which the subcontractor carries out under what is referred to as a ‘back to back’ relationship. This requires an express acknowledgment that the subcontract works (and plant) form part of the main contract works/plant. In the Yellow/Brown books, the subcontractor expressly undertakes to avoid putting the contractor in breach of his corresponding obligations under the main contract (see clause 3.10). However, this commitment only applies in respect of those main contract provisions specifically notified to the subcontractor in Schedule 22 (containing particulars of
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