Lines of authority and accountability must be clearly understood by all parties. Consultants – in particular the architect – must understand the nature of the transfer of their accountability from the owner to the contractor under the novation arrangement, and be prepared to put aside the more usual lines of responsibility to the owner. Equally, the client must understand what they are relinquishing by adopting the novation system.
As there is no established format or documentation for novation, it is advisable for anyone entering into a contract involving novation to seek legal advice.
Three separate contract documents may be involved: