International process plant contracts for use on other performance-based projects

Selecting a contract that is appropriate for the construction work being carried out is a crucial part of the construction management process. Process plants are performance based, and the industry has developed its own conditions of contract to deal with the particular features and demands of its projects. This paper looks at the basic differences between process plants and traditional building projects, and discusses how these differences influence the conditions of contract. In addition to its suite of English law contracts, the IChemE has recently launched an international lump sum contract that retains the same basic contracting philosophy but is suitable for use on international projects. This paper analyses some of the key changes introduced into this international contract, and suggests that it is suitable for use on a wide range of performance-based projects.