The Construction Industry Council (CIC) has completed its suite of novation agreements and related collateral warranties with its 'switch' documents, along with updated guidance.
The Novation Agreement – Switch (second edition) and Collateral Warranty Consultant – Employer: Switch (first edition) may be used by consultants of any discipline, and balance the interests of clients and consultants to ensure they are acceptable to all parties.
The first is for use where the appointment of a consultant is to be novated from a client to a design and build contractor or other organisation on a “switch” basis (for example the contractor appointment applies only from the date of the novation, rather than on an ‘ab initio’ basis, where the appointment is deemed to be ‘from the outset’).
The second is for use with the Novation Agreement – Switch where a warranty is to be given by the consultant to the design and build contractor’s employer in respect of the services performed after novation.
The production of these two industry-standard documents, which complete the suite of CIC standard form novation agreements and collateral warranties (including an ‘ab initio’ form), was steered by the CIC Liability Panel. The Panel has also updated its Risk Management Briefing: Novation of Consultants’ Appointments, to reflect the revised suite.
"Although the ‘ab initio’ form is more often used these days, many consultants and clients prefer the Switch version, and it therefore is important that the CIC continues to offer both options," said the chair of the Panel, Professor Sarah Lupton. "The suite provides consultants and clients with a choice of carefully drafted forms that embody a sensible balance of risk. The updated Risk Management Briefing gives guidance on situations when each document may be suitable, and on ad-hoc clauses that should be avoided."
CIC Chief Executive Graham Watts OBE added: "We are delighted to add to our suite of Novation Agreements and Collateral Warranties and complete this set of important industry standard documents. I would like to thank the members of the CIC Liability Panel who have been the driving force behind these documents and have put in an immense amount of work to produce them."