Out-Law Guide | 01 Mar 2018 | 10:21 am | 2 min. read
The Institution of Chemical Engineers (IChemE) was founded in 1922 and is a global professional engineering institution for professionals involved in the chemical, process and bioprocess industries.
These forms of contract are intended for use in the process industries such as food production, chemicals and pharmaceuticals but can be used to procure other infrastructure works.
These are 'turnkey' contracts, intended to be used for projects which are turned over to the buyer in a ready-to-use condition.
This guide provides a brief look at the UK versions of the three main IChemE forms of contract.
The three main forms of contract are colour-coded according to the pricing mechanism which applies.
Red Book - lump sum, or fixed price contract:
Green Book – cost reimbursable contract:
Burgundy Book – target cost contract:
There are also international forms of the Red, Green and Burgundy Books.
The IChemE suite of contracts follows the same basic structure:
There are also detailed guidance notes to assist the user in preparing a contract.