IChemE Conditions 'Green Book' 4th Edition

Produced in partnership with Peter Jansen of Sharpe Pritchard

Practice notes

IChemE Conditions 'Green Book' 4th Edition

Produced in partnership with Peter Jansen of Sharpe Pritchard

Practice notes

Following publication of the Conditions of Contract for Process Plants for Lump Sum Contracts in 1968, the Institute of Chemical Engineers (IChemE) in 1976 published a reimbursable form of contract known as the 'Green Book'. Second and third editions of the Green Book were published in 1992 and 2001 respectively.

This Practice Note covers the 2013 (4th Edition) of the Green Book, and focuses on the nature of cost reimbursable contracts.

As with all IChemE contracts, the Green Book has detailed provisions for testing on completion and commissioning making it well suited to the process engineering industries including nuclear, water, petrochemicals, steel and food.

The Green Book follows a virtually identical format to the Red Book in its clauses, layout and schedules. The drafting is very similar departing from the text of the Red Book only where necessary to reflect the implications of using a cost reimbursable contract and this Practice Note should be read in conjunction with IChemE Conditions 5th Edition—'Red Book'.

Nature of cost reimbursable contracts

The IChemE lists some advantages

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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.

Jurisdiction(s):

United Kingdom

Key definition:

Publication definition

What does Publication mean?

The requirement in defamation claims for the claimant to show that a defamatory statement has been communicated by the defendant to at least one other person than the parties themselves. As a result of the repetition rule, each time a defamatory statement is repeated, it is 'published' all over again and gives rise to a fresh cause of action; hence there is no defence to a defamation claim by claiming that the defendant was merely repeating a statement which he had heard or received from a third party.

IChemE Conditions 'Green Book' 4th Edition

Produced in partnership with Peter Jansen of Sharpe Pritchard