Document background
A Novation Agreement (Construction) is essential in Danish construction projects when there is a need to substitute one party (typically a contractor or consultant) with another while maintaining the continuity of the existing contract. This document is commonly used in scenarios such as corporate restructuring, contractor insolvency, or strategic project realignment. Under Danish law, particularly considering AB 18 and the Danish Contracts Act, the agreement must carefully address the transfer of both rights and obligations, including specific construction-related responsibilities, warranties, and professional liabilities. The document ensures a smooth transition by clearly defining the novation date, handling outstanding works and payments, addressing existing claims, and managing the transfer of construction-specific documentation and certifications. It's particularly important in Danish jurisdiction where construction contracts are heavily regulated and specific formalities must be observed for effective transfer of construction obligations.
