There is no doubt that these general concerns have been exacerbated as a result of the sectoral response to Blyth & Blyth, in which the contractors` lawyers reorganised novation agreements to include new clauses allowing contractors to rely on the work done by the consultants for the original employer and the losses resulting from that trust, compensation, whereas the original employer would not have suffered such losses. for which the work was performed. From a cynical point of view, some of the novation agreements we see seem to have been deliberately designed to allow the entrepreneur to convey to the consulting team the risk of a poorly thought out offer or the need for in-depth design development. That judgment was based on the fact that the judge had decided that the damages to which Carillon was entitled should be limited by the extent to which the employer could have recovered as a result of the offences. Since the employer could only have claimed minimal losses, Carillion was unable to compensate for the significant losses it claimed to have suffered. The judge found (and the parties agreed) that the novation agreement had become an assignment of the employer`s rights due to misrepresentation and that it did not justify new obligations. Therefore, as with all contracts, the contractor was only able to assert its losses to the extent that the original part of the order (the employer) would have suffered such losses in order to assert the rights available to the employer prior to the innovation. It is understandable that this decision has led contractors to be cautious in formulating novation agreements, as they want to ensure that they can assert their own losses against consultants in the event of infringement before novation. In these complex agreements, with several agreements and likely safeguards requirements, it is important that the advisor avoids assuming different levels of responsibility from one agreement to another. For example, the adviser should be aware of the possibility of assuming greater responsibility in the event of “good practice” when transferring to the contractor. This practice note deals with standard form novation agreements published by the City of London Law Society (CLLS) and the Construction Industry Council (CIC). . .

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