Mills & Reeve

This Precedent is a deed of novation for use where a building contractor has gone into administration and the building contract is being novated to a new contractor by the original contractor’s administrator. By agreement between all the parties involved, it effectively terminates the original building contract between employer and original contractor and transforms it into a new contract between employer and new contractor.

This Precedent is a deed of novation for use on a construction project where a contract (consultant’s appointment) is being novated from the employer to the contractor. This scenario typically occurs where the employer is following a design and build procurement route. By agreement between all the parties involved, it effectively terminates the original contract between the employer and consultant and transforms it into a new contract between the contractor and consultant. Novating an agreement requires the consent of all relevant parties. This Precedent has been drafted on an ‘ab initio’ basis and provides for the incoming party to be responsible for obligations and liabilities after the novation date and also provides for the option of amending the original contract, but this is a matter for negotiation and instruction. This novation agreement provides for execution as a deed.

This Precedent is a deed of novation for use on a construction project where a contract is being novated from one employer to another, new employer. By agreement between all the parties involved, it effectively terminates the original contract between employer and contractor and transforms it into a new contract between the new employer and contractor.