Why third-party rights don't work

摘要

The JCT2005 contract caused a stir with its third-party rights schedule. But, says Jeff Brown, there are so many problems with it that collateral warranties remain as popular as they ever were. Solicitors are always on the look out for a burning issue that will persuade their clients to attend a breakfast briefing. Collateral warranties and third-party rights are not normally worth an early morning alarm call. After all, collateral warranties in favour of funders and end-users have been a common feature of the construction industry for the past 20 years. But what is new is the inclusion within the 2005JCT standard building contract of a separate section devoted to assignment, third-party rights and collateral warranties.