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, in the construction management procurement method, the Client has a direct contractual link with package contractors.
What are the standard conditions of the contract you can use with the construction management procurement method? FIDIC Yellow book suits design-build procurement methods, the Redbook suits Separated procurement methods, and the silver book suit 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 use with process plants and manufacturing facilities but it is also suitable for a range of performance-related projects such as nuclear power production, water desalination, tunnelling and high-voltage distribution.
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