IChemE introduced a standard condition of contract for the Construction Management procurement method.

Among the well-known procurement methods, Management types, i.e., Management Contracting and Construction Management, are two different procurement methods. In the Management Contracting type, there is no contractual link between the Client and Package contractors; the Management Contractor has contracts with each package contractor. In contrast, the Client has a direct contractual link with package contractors in the Construction Management procurement method.

 

What are the standard conditions of contract you can use with the Construction Management procurement method? FIDIC Yellow book suits Design and Build procurement methods, the Red book suits Separated procurement methods, and the Silver book suits EPC/Turnkey procurement types, but there is no book published by FIDIC specifically for the Construction Management procurement method. Even not by NEC. Anyway, the JCT has developed a standard form of contract for the procurement method. Construction Management Contract | RIBA Books

 

The Institution of Chemical Engineers (IChemE) introduced a new standard condition of contract to suit engineering, procurement and construction management (EPCM) or, in other words, suit for the Construction Management procurement method.

Under an EPCM contracting arrangement (or in our term Construction Management procurement method):

• The Client has a direct contractual link with package contractors

• The Client appointed EPCM contractor (in our term Construction Manager) is appointed to provide engineering and design services, manage the procurement of the package contractors and later manage the package contractors during the construction stage.

• The EPCM contractor (in our term, Construction Manager) does not actually do any construction work itself.

Even though the prime aim of Blue Book is to be used with process plants and manufacturing facilities, it is also suitable for a range of performance-related projects such as nuclear power production, water desalination, tunnelling and high-voltage distribution.

The View-only PDF version is available on a 12-month license.

 

The Blue Book, EPCM Contract, 1st Edition, 2023, View Only PDF | IChemE

Note: The article was also published on www.aact.lk