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Novation Agreement (Construction)

Novation Agreement (Construction) Template for Ireland

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Key Requirements PROMPT example:

Novation Agreement (Construction)

"I need a Construction Novation Agreement to transfer the design and build contract from ABC Contractors Limited to XYZ Construction Limited, with the project being a commercial office development in Dublin that's currently 40% complete, with the novation planned for March 2025."

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Document background
The Novation Agreement (Construction) is a crucial document in Irish construction projects where there is a need to substitute one party for another in an existing construction contract. This typically occurs during design and build projects, company acquisitions, project restructuring, or when a contractor needs to be replaced. The agreement ensures all rights, obligations, and liabilities are properly transferred while maintaining project continuity. It must comply with Irish construction law, including the Construction Contracts Act 2013 and Building Control Regulations. The document addresses practical aspects such as outstanding works, payments, and warranties, while also managing professional indemnity insurance requirements and certification obligations. It's particularly important in design and build scenarios where design team appointments need to be novated to the contractor.
Suggested Sections

1. Parties: Identifies the Employer, Original Contractor/Consultant, and New Contractor/Consultant

2. Background: Sets out the context of the original contract and the reason for novation

3. Definitions and Interpretation: Defines key terms and establishes interpretation principles

4. Release and Assumption of Obligations: Details the transfer of rights and obligations from the original party to the new party

5. Effective Date: Specifies when the novation takes effect

6. Original Party's Warranties: Warranties from the original party regarding the contract status and performance to date

7. New Party's Warranties: Warranties from the new party regarding capability and intention to perform

8. Employer's Warranties: Warranties from the employer regarding the contract status and payments

9. Payment Provisions: Addresses outstanding payments and future payment arrangements

10. Professional Indemnity Insurance: Requirements for maintaining professional indemnity insurance

11. Governing Law and Jurisdiction: Specifies Irish law as governing law and Irish courts' jurisdiction

Optional Sections

1. Security Arrangements: Required if there are bonds, guarantees, or other security arrangements to be transferred

2. Intellectual Property Rights: Needed if the contract involves significant design elements or IP rights

3. Step-in Rights: Include if there are funders or other parties with step-in rights

4. Novation of Sub-contracts: Required if sub-contracts need to be novated alongside the main contract

5. Building Information Modelling (BIM): Include if BIM protocols need to be transferred

6. Certification Requirements: Required if there are specific certification roles under Building Control Regulations

Suggested Schedules

1. Schedule 1 - Original Contract: Copy or details of the contract being novated

2. Schedule 2 - Outstanding Works/Services: List of incomplete works or services at the time of novation

3. Schedule 3 - Outstanding Payments: Details of any outstanding payments or payment schedule

4. Schedule 4 - Relevant Correspondence: Key correspondence or variations to the original contract

5. Schedule 5 - Professional Indemnity Insurance Details: Specific insurance requirements and proof of coverage

6. Appendix 1 - Form of Notice of Novation: Template for notifying relevant parties of the novation

7. Appendix 2 - Collateral Warranties: Any collateral warranties to be provided by the new party

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈË°æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

alex.den.21@genieai.co
Relevant legal definitions








































Clauses






























Relevant Industries

Construction

Real Estate Development

Infrastructure

Commercial Property

Residential Development

Industrial Construction

Healthcare Construction

Education Construction

Retail Development

Hospitality Construction

Public Sector Construction

Relevant Teams

Legal

Construction

Commercial

Operations

Procurement

Risk Management

Project Management

Technical

Development

Contract Administration

Relevant Roles

Construction Manager

Project Director

Commercial Director

Contracts Manager

Legal Counsel

Construction Lawyer

Project Manager

Quantity Surveyor

Chief Executive Officer

Commercial Manager

Development Director

Risk Manager

Procurement Manager

Technical Director

Operations Director

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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