Novation

Question 1

What is novation?

Answer 1

Novation is a process by which contractual rights and obligations are transferred from one party to another.

Question 2

What is the advantage of novation?

Answer 2

Reduced learning curve, as the design team already have a strong understanding of the project.

Question 3

What are some of the disadvantages of novation?

Answer 3

The employer woudl require collateral warranties
The employer might need to employ a shadow team for compliance purposes
Potential conflict of interest