Third Party Agreements

The employer`s lawyers often reply with “Ah, but only to the extent that these obligations relate to the performance of the work,” so the contractor does not have to worry.” Does this do the trick and solve the problem correctly? No, unfortunately, not if we look more closely at the specific commitments of these agreements. 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. If the tenant/employer decides to proceed or not obtain the permit before obtaining the building permit, the contractor`s responsibility is responsible for the enforcement action taken by the planning authorities. In fact, the opposite should happen – the contractor should seek compensation from the employer/tenant if he orders the work to work without planning.