Novation

Christopher Cullen

April 2005

A paper based on a talk given to a meeting of the Society of Construction
Law in London on 1st March 2005

This paper considers novation, beginning with its meaning and origin, looking at where it is appropriate and where it is not. It then turns to applications in construction, in particular the novation of consultants appointments, from an employer to a design and build contractor, discussing the problems and risks and the scope of the consultants duty of care. The author then looks at the Blyth & Blyth case, and the question of recoverable losses. He looks in some detail at the standard form of Novation Agreement published by the Construction Industry Council before summarising his views on the place for novation. In an addendum, the author, together with achel Barnes look at the Novation Agreement published by the City of London Law Society and provisions to be found in bespoke forms.

Main text: The meaning of 'novation' - Application to contracts in the construction industry - Post-novation services - Avoiding conflicts of interest - The CIC Agreement - Duties owed back to the employer post-novation - Conclusion. Addendum: The CLLS Agreement - Other novation agreements - Hedley Byrne - Duties to the employer following novation - Interpretation of agreements.

The author: Christopher Cullen is a consultant with solicitors Beale & Company, London.

Text and addendum: 14 pages

PDF file size: 68k