IChemE Turquoise Book – IChemE’s latest offering in its multi-coloured suite

At Burges Salmon, we advise clients on procurement strategy and supply chain contracting across a wide range of sectors, with particular focus on energy, utilities, water and the circular economy. We regularly work with all contracts across the IChemE suite and understand how these forms operate in practice, how they sit within complex supply chains, and how they can be adapted to reflect project‑specific risks and client needs. As new standard forms emerge, understanding content, risk allocation and how the contracts should be completed can make the difference between a workable supply arrangement (facilitating funding, investment and progress) and one that can lead to unnecessarily protracted negotiations or which might result in expensive disputes.

This note highlights the key features of IChemE’s new Turquoise Book and what it may mean for purchasers and suppliers considering it for materials, components and equipment procurement. IChemE’s goal: to provide a structured, industry‑focused alternative to ad-hoc purchase order terms and heavily amended standard conditions. For the right projects, it may offer an alternative to the more familiar forms such as NEC Supply Contracts, adapted FIDIC models or MF/1 terms. 

Supply-Only Arrangement

The Turquoise Book is for supply-only arrangements, reflecting an increasing reliance on suppliers’ specialist technical knowledge without requiring them to assume full design responsibility. 

It is intended for the supply of materials, components or process equipment, as well as low‑complexity, low‑value installation or site attendance where the associated risks are limited and clearly defined.  It is not intended where a supplier’s scope extends into significant bespoke design, complex system integration or commissioning risk.  

IChemE’s objective is to provide a fair and balanced contractual framework that addresses what are seen as recurring problem areas commonly seen in bespoke supply terms and purchase order conditions, particularly disputes around scope, testing, liability and payment.

Structure and Scope 

The Turquoise Book follows the familiar IChemE structure comprising an Agreement, General Conditions, Optional Conditions (covering installation provisions and project‑specific matters), and a suite of Schedules supported by guidance notes. 

As with other IChemE contracts, the Schedules are central to how the Turquoise Book operates in practice. They are intended to capture the technical, commercial and operational detail of the supply, with project‑specific risks managed through clear schedule drafting rather than amendments to the General Conditions. Key schedules address matters such as scope, programme, commercial terms, quality assurance, testing, payment, health and safety and performance criteria. 

The provisions have been simplified to reflect the scale and nature of typical materials supply. While the Turquoise Book is more substantial than standard purchase order terms, it remains broadly balanced and is intended to provide a reliable set of conditions that reduce disputes and operational friction for both purchasers and suppliers.

Flexibility 

Commercially, the Turquoise Book is deliberately flexible. It accommodates a range of pricing and payment structures, including fixed price, target price and reimbursable arrangements, as well as staged or progressive payments. 

Appetite and Uptake 

The Turquoise Book is best understood as an addition to the supply only contracting options on the market.  Used as intended, it has the potential to provide a sensible and efficient framework for supply only arrangements. 

As with any standard form, the use of the Turquoise Book and its effectiveness depends on careful consideration for project specific application, with appropriate technical, commercial and legal input prior to selection.  

For larger more complex projects, the market is likely to stay where it is tested and comfortable, for the time-being at least, with more immediate uptake most likely replacing bespoke supply terms and purchase order conditions, with the potential to improve clarity, reduce disputes and support more effective working relationships between purchasers and suppliers. 

If you are considering adopting the Turquoise Book for a specific project or more benefit from a health-check of your existing contractual arrangements, whether it be for supply only or more widely, we would be happy to advise.    

Written by Lloyd James and Nick Lee