Legal Advice on Construction Novations

Practical legal advice on construction novations, helping you transfer contractual relationships clearly while maintaining project continuity and managing risk.

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Novation is commonly used in construction and engineering projects where an existing contractual relationship needs to transfer from one party to another. This frequently arises on design-and-build projects where consultants initially appointed by a developer or employer are transferred to the main contractor as the project moves into its construction phase.

DTM Legal advises developers, employers, contractors, consultants and other project stakeholders on the preparation, review and negotiation of novation agreements. We can assist with straightforward consultant novations as well as more complex arrangements involving multiple consultants, partial transfers, conditional novations and wider changes to a project’s contractual structure.

Our Construction & Engineering team helps clients establish how rights, responsibilities and liabilities should operate before and after the novation takes effect. By considering the novation alongside professional appointments, building contracts and other project documentation, we can help ensure the transfer reflects the commercial structure of the project and avoids unnecessary uncertainty.

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Construction Novation Legal Services

We advise on a range of novation arrangements across construction and engineering projects, including:

  • Drafting and reviewing consultant novation agreements.
  • Novations involving architects, engineers and other professional consultants.
  • Novations from developers or employers to design-and-build contractors.
  • Partial novations covering specified services, project stages or deliverables.
  • Conditional or “switch” novations taking effect at an agreed project milestone.
  • Bespoke tripartite novation agreements.
  • Reviewing novation provisions within professional appointments.
  • Advising on pre- and post-novation responsibilities.
  • Reviewing the treatment of existing and future liabilities.
  • Advising on outstanding and future consultant fees.
  • Reviewing professional indemnity insurance requirements.
  • Advising on intellectual property rights and design documentation.
  • Coordinating novations with collateral warranties and third-party rights.
  • Reviewing novation arrangements alongside building contracts and wider project documentation.
  • Supporting novations arising from changes in project ownership, procurement or structure.

Why Instruct DTM Legal?

A novation needs to do more than simply record a change in contracting party. The agreement should clearly establish when the transfer takes effect, how work already completed is treated and where responsibility lies for services provided both before and after the novation.

Our Construction & Engineering solicitors take a practical approach to preparing and reviewing novation agreements. We consider the role of each party, the project procurement structure and the commercial outcome the novation is intended to achieve, helping identify potential gaps or inconsistencies before the transfer takes place.

Where novation is anticipated from the outset, we can also advise on the original consultant appointments and wider project documentation. Planning for the future transfer at an early stage can make the subsequent novation process more straightforward and reduce the scope for disagreement when the project moves into its next phase.

We understand that novations are often required at important points in a project programme. Our team can work with developers, contractors, consultants and their wider professional teams to progress the necessary documents while ensuring that liability, payment, design responsibility and stakeholder protections are properly considered.

We provide:

  • Clear and commercially focused advice on construction novations.
  • Support with drafting, reviewing and negotiating novation agreements.
  • Practical advice on pre- and post-novation responsibilities.
  • Careful consideration of liability, payment and design obligations.
  • Coordination with appointments, building contracts and related project documents.
  • Responsive support where novations need to meet project or transaction deadlines.

Get in Touch

For advice on preparing, reviewing or negotiating a novation agreement for a construction or engineering project, contact our Construction & Engineering team.

Contact us to discuss your requirements by calling 01244 354800 / 0151 3210000 or emailing construction@dtmlegal.com.

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Head of Dispute Resolution & Construction
DTM Legal
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Key Considerations for Developers, Contractors and Consultants – Novations

Before seeking legal advice on a construction novation, it is helpful to consider the following points and gather the relevant project information. Read our Key Considerations guide to understand some of the points a solicitor may wish to discuss when responding to your enquiry. It can help you prepare the relevant information and make your initial conversation more productive.

View Key Considerations
DTM Legal
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Construction & Engineering Team

Jim Morris

Head of Dispute Resolution & Construction
Guy Thomas

Partner, Construction & Engineering

Frequently Asked Questions

Commonly asked questions when seeking novation legal services.

A novation is a contractual arrangement used to replace one party to an existing contract with another and establish a new contractual relationship.

In construction projects, this commonly occurs where a developer or employer appoints a consultant during the early design stages and the consultant is later novated to a design-and-build contractor. The novation agreement should clearly address how the consultant’s rights, responsibilities and liabilities operate following that transfer.

Novation and assignment are different contractual mechanisms. An assignment is generally used to transfer the benefit of contractual rights, whereas a novation creates a new contractual relationship involving an incoming party.

Where the commercial intention is for another party to take over an ongoing contractual relationship and the responsibilities associated with it, novation may therefore be more appropriate. The existing contract and intended outcome should be reviewed before deciding which mechanism to use.

Ideally, the possibility of novation should be considered when the consultant’s original appointment is negotiated. The appointment can then establish the circumstances in which the consultant may be required to novate and any agreed process for doing so.

The novation agreement itself should be progressed in sufficient time for the proposed transfer to take effect at the required stage of the project. Leaving the documentation unresolved can create uncertainty over instructions, payment and responsibility for ongoing services.

This will depend on the terms of the consultant’s original appointment and the novation agreement.

Responsibility for services carried out before the novation should therefore be addressed clearly rather than assumed. The parties should understand who can enforce obligations relating to earlier design work and what liabilities the consultant retains following the transfer.

The position will depend on the terms of the consultant’s existing appointment and the arrangements previously agreed between the parties.

Where novation is likely to be required, including appropriate provisions within the original appointment can help establish expectations from the outset. The proposed novation terms should still be reviewed carefully to ensure they reflect the agreed contractual position and do not introduce unintended obligations.

What our Clients Say

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5/5 350+Reviews
Mike Hooper
16/06/2026
Guy is brings his experience of working in the Construction Industry as an Engineer to legal matters. He is a leader in his field.
Dean Sheldon
16/06/2026
DTM Legal have given our company invaluable support when needed and offer down to earth, no nonsense advice and guidance. Highly recommended.
Anonymous
01/10/2023
Jim Morris is a high-calibre solicitor who gives absolute confidence from the outset and obtains fantastic results in difficult and high-value matters. He keeps clients up-to-date on the progression of claims and costs whilst providing outstanding advice. He clearly cares about obtaining the best result for us, didn’t delegate and no-nonsense commercial advice. I have already recommended to other businesses.

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