Novation

An increasing number of large projects are now being delivered under novated agreements – a common method of construction procurement that, if not managed carefully and documented thoroughly, may potentially increase the exposure and subsequent liability of an architect.

Novation involves:

  • the termination or variation of an existing agreement between the architect and the principal; and
  • the creation of a new agreement between the architect and the contractor.

From the perspective of the architect this effectively operates as the substitution of the original client with a new client for the provision of the remaining services.