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ARTICLE · 27 NOVEMBER 2018

Third-Party Agreements: A Contractor's Perspective

Fenwick Elliott LLP
Fenwick Elliott LLP
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There are potentially many issues lurking within the third-party agreements which may be foisted on to contractors.

United KingdomCorporate/Commercial Law

It seems to have become a constantly recurring theme recently when reviewing amendments to building contracts that the contractor is expected to assume all of the employer's obligations, liabilities and risks under agreements the employer has entered into "up the line" that relate to the carrying out of the works as if these obligations were set out in the building contract. Typical third-party agreements may include an agreement for lease or a licence to alter agreed with the employer's landlord or a funding agreement with a bank.

The wording inserted into the schedule of amendments will usually impose the following on the contractor: the contractor is deemed to have read and have full knowledge of the third-party agreements (even where it does not have any knowledge of them at all and usually has not even been sent a copy), it must not put the employer in breach of any of the employer's obligations under these agreements and it must perform all of the obligations

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