Third Party Agreements

In reviewing the changes to the work contracts, the fact that the contractor would have to assume all of the employer`s obligations, commitments and risks under “line” employer agreements relating to the performance of the work, as if those obligations were defined in the construction contract, appears to have become a recurring topic. Typical third-party contracts may include a lease agreement or modification agreement agreed with the employer`s lessor or a financing agreement with a bank. An assignment refers to a person who is a party to a contract (the assignee) who transfers his rights to another person known as the assignee. The assignee may sue the contract directly against the person designated as an assignee. The person in charge of the contract is designated as a debtor. In principle, there are no formal conditions for transfer, unless a statute with specific requirements is in effect. If the words in the treaty show the intention to transfer rights, that is enough to form an assignment. As a result of the increase in demand for third parties, the risks they put on the table are also dramatically increasing. And the responsibility for managing this responsibility rests entirely with the company to which the third-party supplier is responsible. The attention paid to what your third parties send – and what these third parties do with that data – is no longer just a good recommended practice. Regulatory oversight has been expanded to make control of third-party data and sensitive processes essential to a company`s operational success. Another example is obtaining all the necessary consents, a tenant`s commitment that is usually included in each change license.

The contractor must be very careful in carefully considering the commitments he may make to the employer/tenant as part of the third-party agreement with respect to his obligations under the construction contract. This may be a classic case of bonds imposed by backdoors. For example, the construction contract may be completely silent as to who should obtain the building permit. In addition, the construction contract may provide that the contractor is only required to assist the employer in obtaining all necessary consents, but the onus is on the employer to obtain them. If the amending licence stipulates that the tenant is absolutely obliged to obtain the necessary authorizations to carry out the work (e.g.B. building permit, allocation of the party, etc.), which he will often do, the contractor will assume this obligation under the contractual clause of third parties, as if it were directly stipulated in the contract of work. The employer/tenant can then simply refer to this clause and say that this obligation, since it relates to the performance of the work, is included in the construction contract and represents the risk to the contractor. The situation may be aggravated if the amendable licence also provides that the lessor is compensated for any liability for non-obtaining consent, authorization or license, etc.