Hands up those of you who can explain the difference between "assignment" and "novation" without hesitation or repetition? Assignment is a unilateral act by which I can pass on to somebody else the benefits I enjoy under a contract with, for example, my architect or contractor. I don't have to ask those parties for permission to assign my rights - unless, of course, the contracts require their consent. A novation is completely different. Not only is it not a unilateral act, it is a contract -and a three-sided one at that. If contracts between two people are complicated, contracts between three people are even more so. The practice of novating consultants' contracts from developer to contractor in design-and-build contracts has, for a long time, been an everyday occurrence, but it still frequently causes confusion and conflict. Although the loudest complaints about the process have come from consultants - who are often exposed to serious conflicts of interest - the interests of contractors and clients need to be protected as well.
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