Herbert Smith Freehills LLP

The Institution of Chemical Engineers (“I Chem E”) first published its forms of contract in 1968 when it produced the first edition of the Model Form of Conditions of Contract for Process Plant suitable for lump-sum contracts in the United Kingdom. This became known as the “Red Book” (not to be confused with FIDIC’s later “Red Book”). It then produced a form suitable for cost-reimbursable contracts in 1976 which became known as the “Green Book”. In 1992 the “Yellow Book”, a subcontract for both the Red and the Green Books was produced and in 2002 a target-cost contract, the “Burgundy Book” was published. Finally, in 2007 an international version of the main forms was published, suitable for use where at least one of the parties is contracting outside its home country. The Contract Books comprise an Agreement, conditions of contract (both general and special), a specification and numerous schedules.

Before dealing with the specific contents of the new suite, mention should be made of the type of work for which this suite of contracts is suitable. As the original title indicates, the forms of contract are intended to be used for production of process plant, i.e., contracts to construct or refurbish plant or equipment intended to produce a product. The contract is therefore performance-based. Work is divided into three phases: design and construction, taking over and performance testing.