I DEX 1.- Standard Form Contracts: FIDIC 2.

- OTHER CO TRACTS
1.- FIDIC http://www.out-law.com/en/topics/projects--construction/construction-standard-formcontracts/standard-form-contracts-fidic/

1.- Standard Form Contracts: FIDIC

This guide was last updated in August 2011. FIDIC is the International Federation of Consulting Engineers, known by its French acronym. It was formed in 1913, with the objective of promoting the interests of consulting engineering firms globally. It is best known for its range of standard conditions of contract for the construction, plant and design industries. The FIDIC forms are the most widely used forms of contract internationally, including by the World Bank for its projects. This guide will look at the Red and Yellow Books under the FIDIC Suite of New Contracts. What is the FIDIC family of contracts? The FIDIC 'Rainbow Suite' of New Contracts was published in 1999 and includes:

the Red Book: Conditions of Contract for Construction for Building and Engineering Works Designed by the Employer; the Yellow Book: Conditions of Contract for Plant and Design-Build; the Silver Book: Conditions of Contract for EPC/Turnkey Projects; the Green Book: Conditions of Short Form of Contract.

These 'new' forms were first editions and designed to be user-friendly, with a standardised approach and a reduction in the general conditions from over 60 to 20 clauses. Additional forms in use since 1999 include:

the Blue Book: Contract for Dredging and Reclamation Works; MDB/FIDIC Contract: FIDIC conditions incorporated in the standard bidding documents of multilateral development banks; the White Book: Client/Consultant Model Services Agreement; the Gold Book: FIDIC Design, Build and Operate Projects.

To assist with implementing its founding objectives, FIDIC's approach to drafting contracts has always been underpinned by the principle that its contracts must provide a fair allocation of risks between the parties to a contract, and that risks should be borne by the party best able to control them. Understanding the contract and general provisions The Red and Yellow Books have a similar structure, with 20 general conditions. Both have guidance to assist in the preparation of particular conditions, and also the option to add Particular Conditions. The Red Book (the Construction Contract for Building and Engineering Works Designed by the Employer) is intended to be used where the employer is responsible for the design of the works. It is a re-measurement contract, meaning that the employer and the contractor will agree in their contract the rates for types of work and those rates will be applied to the quantity of that work that the contractor carries out. The employer takes the risk that the quantities it estimates will be more or less accurate, while the contractor must ensure that its unit prices for the quantities are adequate. The Yellow Book (the Plant and Design-Build Contract) is intended for use where the works are designed by the contractor. It is a lump sum contract, in which the contractor promises to deliver the project for a set price. The contractor, therefore, takes the risk of quantities. All FIDIC books define the role of the engineer essentially as the agent of the employer. The engineer is primarily responsible for contract administration. The engineer:

issues instructions and notices; monitors the works; acts as certifier.

Note that the engineer is no longer stated to be impartial - in the Red and Yellow Books the engineer is deemed to and in practice does act for the employer. The contractor's main obligation under any construction contract is of course the construction and completion of the works within the specified time for completion and in accordance with the contract. Its other obligations under the Red and Yellow Books include:

fitness for purpose ensuring that its design will meet the employer's requirements; design responsibility; carrying out the works in a proper and workmanlike manner with properly equipped facilities and non-hazardous materials;

providing those facilities and choosing those materials; responsibility for method of working.

The contractor also has an obligation to perform certain administrative and other functions to facilitate performance, including providing information needed for the execution and completion of the works and the issuing of notices including for events increasing cost or completion time. How to avoid pitfalls Contractor's claims: a key obligation under the Red and Yellow Books is the requirement to serve notice in respect of a claim for an extension of time or additional payment. The contractor must give notice of its intention to claim as soon as possible and no later than 28 days after the contractor becomes aware, or should have become aware, of an event. It must then submit its fully detailed claim within 42 days of becoming aware of an event or circumstance that gives rise to a claim. Previously, failure to comply with these time limits meant that any compensation would be limited to sums supported by contemporary records. Now, there is no entitlement to compensation if the contractor fails to comply. Variations and adjustments: using the Red and Yellow Books, a variation for changes to the works can arise by:

an employer's instruction; an employer's request for a proposal; a contractor's 'value engineering' proposal.

Variations may have an adverse impact on the contract or on the guarantees in place for the project, for example through a reduction in the safety or suitability of the works. This should be monitored and flagged up immediately. A contractor could have liability even where it is simply following the engineer's instructions. A contractor is obliged to comply with the employer's request for a variation unless it cannot readily obtain the necessary goods required for that variation. One issue to be aware of is whether the engineer's suggestions can be deemed to be variations. This will be determined by the facts of a particular event. The Red and Yellow Books provide that if the engineer gives an oral instruction and the contractor confirms that instruction in writing within two working days then, if the engineer does not reject this confirmation within two working days, that confirmation is deemed to constitute a written instruction of the engineer. It is therefore very important to ensure that any verbal instruction that changes the scope of the works is confirmed in writing. The contractor should not make alterations or modification to the works unless instructed or approved by the engineer. Delay and extension of time: the contractor will be liable for damages if the actual completion date of the works occurs after the agreed completion date unless the delay is

caused by a matter for which an extension of time is available and the contractor complies with the notice and other requirements under the contract. The contractor may be entitled to an extension of time where there is:

a variation or additional work instructed; exceptionally adverse weather; unforeseeable shortages in the availability of personnel or goods; delay caused by the employer; a cause of delay under any other clause in the contract; unforeseeable delay caused by complying with public authority procedures.

The contractor must strictly comply with the notice requirements under the contract, including giving all necessary information required in relation to the claim. Note that minutes of a meeting or a contractor's progress report are unlikely to constitute proper notice. Dispute resolution Disputes under Red and Yellow Book contracts should be referred to a Dispute Adjudication Board (DAB). A DAB can be created at the start of the project or when a dispute occurs. It is an informal process which encourages party involvement and recognises the need for speed. The contracts provide that a DAB's decision will become final and binding 28 days after it is issued if the parties do not give a notice of dissatisfaction. Where a notice of dissatisfaction is given, the parties are obliged to attempt the amicable settlement of their disputes. Unless such disputes are settled amicably, any dispute in respect of which the DAB's decision has not become final and binding will be settled by international arbitration. The importance of record-keeping Keeping adequate records is essential to:

establish entitlements to money and time; defend subcontractor claims; comply with the contract's reporting obligations.

Decide at the outset how and what records should be kept, ensuring of course that this also complies with the contract. There is no point putting in place an unnecessarily detailed or complex procedure that your administrative or site team will be unable to follow. Summary The effective administration of a FIDIC construction contract is essential to ensure that time and money claims are protected. It is important to write notices in clear and unequivocal terms do not hint or insinuate. Keeping effective records will assist

contractors and employers to prove their entitlements and enable both parties to accurately ascertain their positions in the event that a dispute arises.

2.- OTHER CO TRACTS

Construction standard form contracts Guides

2.1.- Sub-contracting 2.2.- Standard form contracts: JCT 2.3.- Standard Form Contracts: NEC 2.4.- Standard Form Contracts: IChemE

2.1.- Sub-contracting
This guide was last updated in October 2012. Topics

Construction contracts International Construction Projects procurement and contracts Construction standard form contracts Projects Major Projects Construction procurement Projects and procurement International projects Construction Advisory & Disputes Community infrastructure International construction

This guide outlines what sub-contracting in construction contracts involves, and the main issues to consider. What is sub-contracting? A sub-contractor is a party which agrees to perform part or all of the obligations of another party (main contractor) under a separate contract (master contract) with the ultimate employer (employer).

The sub-contractor will usually be engaged by a main contractor to perform a specific task as part of the master contract. Why sub-contract? Main contractors usually sub-contract obligations because they:

require additional resources: for instance if they undertake a particularly big job, such as a multi-site construction project; are responsible for making the professional appointments: for instance the architect, structural engineer, mechanical & electrical engineer and project manager; require additional specialist advice or expertise: more specialised consultants include archaeological consultants, traffic management consultants and surveyors; are required by law to appoint them: for instance a CDM co-ordinator in relation to health and safety.

Drafting the sub-contract The main contractor will be responsible to the employer for its obligations under the master contract, regardless of whether any breach is caused by the sub-contractor failing to perform its obligations under the sub-contract. The sub-contractor has to understand its obligations and must deliver in a timeframe and manner which will enable the main contractor to perform its obligations under the main contract. From the main contractor's perspective, it will be important that the terms of the main contract are reflected in, or stepped down to, the sub-contract. This avoids 'gaps' in the main contractor's obligations under the master contract and the sub-contractor's obligations under the sub-contract. Any gaps are likely to mean liability sitting with the main contractor: There is no fixed approach to sub-contracting, and different approaches have their advantages and disadvantages:

standard form sub-contract: o there are many different standard forms of sub-contract which are recognised in the construction industry. These seek to provide an "off the shelf" contract for the parties to use; o the main advantage of using this method is avoiding the need to draft the sub-contract from scratch and hopefully saving time negotiating it. Standard forms can also be useful if the same parties are involved on repeat projects; o the main disadvantages are: they will not reflect project-specific risks or unusual provisions in the master contract; they will usually be drafted to benefit one party more than the other. It is important to remember that it will still be necessary to

review the sub-contract and it is possible that amendments will be needed; some obligations cannot be stepped down to the sub-contract; the same standard form will not suit all sub-contractors on all projects, and should be reviewed regularly to ensure that changes in the law and lessons learned on previous projects can be taken into account; incorporating the terms of the main master contract by reference into a framework contract; o this is commonly a short sub-contract obliging the sub-contractor to identify and comply with the relevant terms of the master contract; o advantages of using this method are: o there is no need to amend or redraft the sub-contract if changes are made to the master contract, as these changes will simply be incorporated by reference; o any issues caused by having to cross-reference between the two documents will be reduced or eliminated; o this method also encourages the sub-contractor to focus on and carry out a proper review of the provisions of the actual master contract; o the main disadvantages are: o the risk that the sub-contractor will not identify everything and creating 'gaps' between the master contract and sub-contract (see above); o having to determine the contractual effect of master contract terms if these are not clearly drafted - it is not always clear how certain terms would have been stepped down to the sub-contract; o some terms are only relevant to the master contract and should not be stepped down to the sub-contract. This could lead to ambiguities and disputes about whether or not the sub-contractor should or should not have done something; o certain clauses which are unique to the sub-contract will still need to be drafted; bespoke sub-contract: this is the most common approach, particularly on complex projects; each master contract clause will be reviewed to consider whether the obligations in that clause should be stepped down to the sub-contractor. Amendments and additional drafting will be required to ensure that the clauses work correctly in the sub-contract; the main advantage of using this method is that it allows the parties to address any unique issues the main disadvantages are: they will take longer to complete; sub-contract redrafts are generally necessary each time the master contract is amended.

The employer's involvement in sub-contracts The employer, while negotiating the master contract with the main contractor, will want to make sure the main contractor will meet the performance requirements set out in the

master contract and that the sub-contract costings match up. It will therefore want to review the main contractor's sub-contracting arrangements. The main contractor should be allowed to manage the delivery of the construction project, but best practice is for the employer not to sign the master contract until the sub-contract(s) are agreed and ready for execution. Examples of the issues which the employer should look out for are:

sub-contracting assignment and novation: the employer will want control over the sub-contractor further sub-contracting its work. For instance, it will want any future sub-contractor to have the technical expertise and financial strength to perform its obligations; for more detail on assignment and novation please see our guide; liquidated damages: if the master contract requires the main contractor to pay liquidated damages to the employer for late completion of the works, the employer should ensure that the main contractor will be able to recover enough under its sub-contract to pay the employer. This will avoid the main contractor not having sufficient funds to pay the employer; for more detail on liquidated damages please see our guide; collateral warranties: collateral warranties create a direct contractual link, which would not otherwise exist, between the employer and the sub-contractor. This allows the employer to make a contractual claim against sub-contractors, should sub-contractors fail to perform their obligations under the sub-contract; should the employer have to step-in and replace the main contractor in the subcontract, it will have to ensure that it is happy with the sub-contract as a whole and the obligations it might assume; for more detail on collateral warranties please see our guide breakage costs: the employer should ensure that it is comfortable with any breakage costs payable if the sub-contract is terminated early, since it will be potentially liable for various termination scenarios under the main contract.

The main contractor's principal concerns in sub-contracts Examples of the issues which the main contractor should look out for are:

headroom: the main contractor should give itself enough time under the subcontract to enable it to perform its obligations under the master contract, bearing in mind that the sub-contractor may be 'on the ground' and in possession of the relevant information. Examples are: notifications and time limits: if the main contractor is obliged to notify the employer within for instance 20 days of an event which might cause delays and therefore give rise to an entitlement to an extension of time, it will need to ensure that the corresponding period in the sub-contract is less than 20 days, to give it time to pass information up the contractual chain to the employer; exercising rights: if the employer has 20 days to exercise a right under the master contract which has been stepped down to the sub-contract, the main

contractor will want more than 20 days to exercise the right under the subcontract; information: the same principle applies to information which the sub-contractor will need to give to the employer under the master contract. The sub-contractor should be obliged to provide the same information under the sub-contract; extensions of time and other reliefs: the main contractor will want to ensure that it is entitled to the same remedies and reliefs under the main contract as the subcontractor is entitled to under the sub-contract. This avoids the situation where the sub-contractor may be entitled to for instance an extension of time under the sub-contract, to which the main contractor is not entitled under the main contract; certification of completion: again, the main contractor will want to ensure that certificates issued by third parties confirming completion of the works apply to both the sub-contract and master contract, to avoid inconsistency and potentially achieving completion under one, but not both, of the contracts; payment: the main contractor will want to ensure that it is not obliged to pay its sub-contractors before it has been paid by the employer. Recent changes to the Construction Act are aimed among other things at the abolition of conditional payment clauses and introducing a 'fairer' payment regime, and improving rights for contractors to suspend their work in non-payment circumstances; dispute resolution: the main contractor will not want to be bound by a decision under the dispute resolution procedure (DRP) in the master contract while it is still involved in the sub-contract DRP. Recent changes to the Construction Act are aimed among other things at to encouraging the use of adjudication for the resolution of disputes; is there more than one sub-contractor? The main contractor will wish to ensure that each sub-contractor is obliged not to do anything which would harm the project by preventing other sub-contractor from performing its obligations. For an example of how this is dealt with in PPP projects, see our guide to interface agreements; caps on liability: are they lower in the sub-contract than in the master contract, and does the main contractor want to take the risk of the gap? What about small, specialist sub-contractors who are unable to accept the same level of liability under the master contract?

2.2 Standard form contracts: JCT

This guide was last updated in ovember2012. This guide will outline the forms of JCT contract, the most common standard form construction contract used in the UK, accounting for about 70% of UK projects. The Joint Contracts Tribunal The Joint Contracts Tribunal (JCT), is made up of seven members who represent a wide range of interests in the building and construction industries. It produces standard forms of contract, guidance notes and other standard documentation for use in the industry.

The intention of the JCT is that the contracts generated by them represent a balanced allocation of risk between the parties. The JCT suite of contracts The most recent version is the 2011 suite. This takes account of changes to the Housing Grants, Construction and Regeneration Act 1996, which affects payment and dispute resolution. However, previous editions of JCT are still in use. The main contracts in the JCT suite are listed below (see 'Main JCT contracts'). This guide will focus on the following forms:

Standard Building Contract (SBC); Design & Build (DB).

Format and structure The standard format of a JCT contract is:

Articles of Agreement; Contract Particulars: these contain project-specific information; Conditions of Contract; and Schedules.

The schedules cover some of the more commonly used 'add-ons' to a construction contract, such as insurance options, a design submission procedure and fluctuations. Main Provisions There are nine main sections to the JCT suite of contracts. They cover:

definitions carrying out the works control of the works; payment; variations; injury, damage and insurance; assignment, third party rights and collateral warranties; termination; settlement of disputes.

The JCT contract payment provisions are flexible. They may permit up front payments from employers to contractors, usually accompanied by payment security such as a bond, and/or invoicing once work has been certified as completed. Certification is usually by an independent third party (such as an architect, an employer's agent or a contract administrator). Interim payments are usually made as the works progress. JCT envisages retention of an agreed percentage of the contract sum until practical completion, and then a reduced percentage until a period after final completion. This is

usually intended to act as an incentive to the contractor to deal with defects which come to light after the project has been completed. JCT provides a fixed date for completion and envisages up front agreement of liquidated damages as an estimate of the employer's losses if the contractor does not complete the works by that contractually agreed date. The contractor will be entitled to ask for an extension of time for completion if an event occurs which is at the employer's risk and delays the contractor. The JCT was one of the first standard forms to embrace 'third party rights' as an option for use instead of collateral warranties (although collateral warranties are still the most common option). Design & Build Contract The D&B contract is a popular form in the JCT suite and tends to be used for large, complex construction projects such as sports stadia, shopping centres and office blocks. It is used by the public and private sector. The key feature of the D&B contract is that the contractor will design the works based on requirements given to it by the employer (i.e. what the employer wants in terms of construction). The contractor will produce the contractor's proposals (setting out how the contractor will achieve the employer's requirements). It will then carry out the works (as described in contractors proposals) for a lump sum. Standard Building Contract Sometimes described as 'traditional contracting,' the contractor will tend not to be involved in any aspect of the design under an SBC. The works will be described by reference to drawings and bills of quantities prepared by or on behalf of the employer and given to the contractor. 'Bills of quantities' are effectively lists of the items which will be needed for construction (including a description of the item and the quantity required) and on which payment is based. There are three forms of SBC and the appropriate type is likely to depend on whether the Employer wants a lump sum contract price or a measurement contract price:

lump sum: the SBC/Q and SBC/XQ are lump sum contracts. This means that the contract price will change only if the works are varied or delayed (due to the Employer's risk/fault). The two types of SBC are: o SBC/Q the employer provides the contractor with bills of quantities to define the quantity and quality of the work; o SBC/XQ the employer provides the contractor with specification or work schedules to define adequately the scope and quality of the work but with no bills of quantity. Likely to be appropriate where the degree of complexity is not such as to require bills of quantities; o measurement: the SBC/AQ is a measurement contract: this type of contract would be suitable where the quantity of the work is uncertain for example in a civil engineering contract scheme where large amounts of earthworks might be needed, but

with the exact quantity being unknown, or where there is insufficient time to prepare the detailed drawings necessary for accurate bills of quantities to be produced; the employer provides the contractor with approximate bills of quantities, which are to be subject to re-measurement; this means that like a lump sum contract, the contract price will change if the works are varied or delayed (due to the employer's risk/fault). However, the contract price will also change to reflect the actual work carried out: the works are 'measured' and the rates given in the approximate bills of quantities are applied to the measured quantities. Major Project Construction (MP) MPs are designed for use on the largest design and build projects all built by one contractor. They are shorter than DB contracts and more flexible. They are appropriate where parties are:

experienced in undertaking large scale construction work; familiar with risk management; have appropriate in house contractual procedures.

Main JCT contracts The main contracts in the JCT suite are:

Standard Building Contract; Design & Build; Intermediate Contract; Intermediate Contract with Design; Minor Works; Minor Works with Design; Major Projects (MP); Framework, non-binding and binding; various sub-contracts; guidance books, practice notes and forms.

2.3.- Standard Form Contracts: EC

This guide was last updated in August 2011. The New Engineering Contract (NEC), of which the Engineering and Construction Contract (ECC) forms a part, is a suite of standard form construction contracts created by the Institution of Civil Engineers. There have been three editions: the first in 1993, the second in 1995 and the most recent NEC3 in June 2005.

The use of NEC in construction projects is becoming more common, and it is the contract of choice for the 2012 Olympics. This guide summarises some key points for an employer or contractor to be aware of when contemplating using NEC3. Brief history In the early 1990s, the Government commissioned the Latham Report to review procurement and contractual arrangements in the UK construction industry. The report concluded that strategies should be adopted to:

bring an end to the adversarial approach that had become so prevalent in the construction industry; produce a single contract with a wide application; stimulate productive management

NEC3 is now used for many major construction and engineering projects in the UK and overseas. It is endorsed by the Institute of Civil Engineers, the Olympic Delivery Authority and the Office of Government Commerce which recommends NEC3 for use on all public sector construction projects. Underlying principles of EC3 NEC3 adopts a fundamentally different philosophy and practice to most other standard form construction or engineering contracts. Its three core underlying principles are:

clarity and simplicity: the contract is well-supported with additional materials, including detailed flow-charts and guidance notes. NEC3 is intended to be clear, simple and easy to use, and is written in the present tense in plain English. However this can lead to problems as its brevity can, in some cases, create ambiguity and much of its terminology is untested in the courts; stimulus to good management: overall, NEC3 focuses on 'real time' management of the project rather than looking back on what the parties should have done. However it is very heavy on administration, and requires good understanding of its procedures and sufficient resources from both the employer and the contractor to make it a success; flexibility: NEC3 can be constructed from nine sections of core clauses, six main options, two dispute resolution options and seventeen secondary options. This flexible approach is intended to avoid the need for lots of bespoke amendments, reduce the need for lengthy negotiation and also reduce the potential for disputes. However, in practice most of NEC3 contracts include considerable bespoke amendments known as the 'Z' clauses as they form part of Option Z under the contract.

The structure NEC3 contracts are constructed as follows:

core clauses: these nine sections are the same in every form, and cover the basics which are applicable in every contract: 1 - general - includes defined terms, interpretation, communications, ambiguities; 2 contractor's main responsibilities provision of works, design, people, subcontracting; 3 time starting, completion dates, key dates, programme, access, takeover, acceleration; 4 testing and defects tests and inspections, notifying defects, correcting defects, accepting defects, uncorrected defects; 5 payment assessing amounts due, payment provisions, pain share/gain share where appropriate; 6 compensation events events which will give rise to time and money and procedures for dealing with these; 7 title for example, to plant and materials; 8 risks and insurance contractor and employer risks, insurance requirements; 9 termination grounds, procedures and payments on/for termination. main options: these relate to contract structure and pricing. One option, from A to F, must be selected: A: Priced Contract with Activity Schedule; B: Priced Contract with Bill of Quantities; C: Target Contract with Activity Schedule; D: Target Contract with Bill of Quantities; E: Cost Reimbursable Contract; F: Management Contract dispute resolution: two options W1 and W2 - one of which must be selected; secondary options: seventeen further clauses for certain matters such as changes in law, alteration of pricing for inflation and provision of performance bonds can be selected as appropriate; contract data: this section is critical as it contains all the contract-specific essential information, and there are no default options. Part One should be provided by the employer, and Part Two by the contractor. It includes the Works Information and Site Information the works and site-specific information, such as scope of work and design responsibility; Z clauses, or bespoke amendments, can also be added if necessary.

Some key differences between EC3 and other standard form contracts At a more detailed level, NEC3's approach to some of the common features and practices adopted in construction and engineering projects is quite different, including:

interim payments are ascertained and paid on a forecast basis, rather than by reference to actual costs; there are some potentially surprising approaches taken to recoverable costs, and these need to be worked through in detail - particularly if the same mechanism is stepped down to subcontracts; there is a preliminary assessment of pain/gain share made at completion, and payment/allowance is made at that stage. The final assessment is made once the final actual cost is known and the final target cost is known;

NEC operates what is in effect a maintenance period after the project is completed, instead of the traditional defects liability period; the events which can give rise to an extension of time or additional payment are comparatively extensive

2.4.- The Institution of Chemical Engineers (IChemE) is a global professional engineering institution that was founded in 1922. It has created two sets of forms of contract, which are intended for use in international and UK projects in the process industries such as food production, chemicals and pharmaceuticals. These are 'turnkey' contracts, intended to be used for projects which are turned over to the buyer in a ready-to-use condition. Each form of IChemE contract handbook contains a model form of agreement, general conditions and detailed guide notes to assist the user in preparing a contract. This guide provides a brief look at the three main IChemE forms of contract. The three main forms of contract IChemE contracts are intended for use in procuring process plant - specialist machinery - but can be used to procure other infrastructure works. The three main forms of contract are colour coded according to the pricing mechanism to be used. Red Book - lump sum, or fixed price contract:

one fixed price for the whole works; contractor takes risk of any additional costs over the fixed price; contractor may still recover additional costs depending on the agreement.

Green Book reimbursement contract:

contractor can claim back costs incurred in carrying out the work; there is no up-front fixed price; contractor takes less risk.

Burgundy Book target cost contract:

a variation on a reimbursement pricing mechanism; costs can be claimed up to a fixed (target) level; where the final cost is above or below this target, the difference gain or loss is shared in an agreed proportion.

IChemE published international forms of the Red, Green and Burgundy Books in 2007. Contract structure

The IChemE suite of contracts follow the same basic structure:

agreement; conditions of contract; general; and particular: unlike in other standard forms of contract, the particular conditions are essential and need to be drafted to meet the applicable law for the project. Other specific conditions may also be needed; specification; schedules

otable clauses in IChemE contracts

extensive testing regimes: IChemE contracts contain a more thorough testing procedure, for both pre and post completion, than some other standard forms of contract; takeover tests and procedures: IChemE's detailed testing regime includes separate tests for when the project is completed and when the plant is taken over by the employer.