A platform for research: civil engineering, architecture and urbanism
A platform for research: civil engineering, architecture and urbanism
Novation is not, as often described, the replacement of one party to a contract with another. It is the substitution of a new contract for an existing one. It can only be undertaken with the consent of all parties concerned, usually three. Novation can be used to effectively replace one contractor with another on a project, e.g. where an insolvency has occurred. However, it is more commonly associated with design and build contracts. Often one or all of the design team are initially engaged by the employer to do preliminary work and then ‘transferred’ to the design and build contractor to undertake the detailed design. The consultants are expected to enter into novation agreements to create new contracts between each consultant and the design and build contractor. This procedure has given rise to the incorrect use of novation as a verb as in ‘the architect was novated to the contractor’.
Novation is not, as often described, the replacement of one party to a contract with another. It is the substitution of a new contract for an existing one. It can only be undertaken with the consent of all parties concerned, usually three. Novation can be used to effectively replace one contractor with another on a project, e.g. where an insolvency has occurred. However, it is more commonly associated with design and build contracts. Often one or all of the design team are initially engaged by the employer to do preliminary work and then ‘transferred’ to the design and build contractor to undertake the detailed design. The consultants are expected to enter into novation agreements to create new contracts between each consultant and the design and build contractor. This procedure has given rise to the incorrect use of novation as a verb as in ‘the architect was novated to the contractor’.
Novation
Chappell, David (author)
2020-01-07
2 pages
Article/Chapter (Book)
Electronic Resource
English
Robert Stevenson - Novation or no novation?
Online Contents | 2009
British Library Online Contents | 1997
Understanding the dynamics of novation
| British Library Conference Proceedings | 2001
Evaluation of novation contract
| British Library Conference Proceedings | 1994
Design and Build through Novation
| British Library Conference Proceedings | 1994