International Construction Law Review
THE EFFECT OF ASSIGNMENT AND NOVATION ON THE JURISDICTION OF CONSTRUCTION ADJUDICATORS
DR M. SALEH JABERI
Attorney and a lead partner of ESK Law Firm
This article explores how assignment and novation affect the jurisdiction of adjudicators in UK construction disputes. It distinguishes the legal consequences of each mechanism and highlights the risks of conflation, which can lead to jurisdictional defects. The paper assesses whether rights to adjudicate can be assigned under the Housing Grants, Construction and Regeneration Act 1996 and whether third parties can rely on the Contracts (Rights of Third Parties) Act 1999 to enforce adjudication rights. It further examines the impact of anti-assignment clauses and the consequences of failing to raise jurisdictional objections during adjudication proceedings.
1. INTRODUCTION
In the context of construction projects, it is often necessary to transfer contractual responsibilities and benefits from one party to another, typically as a result of organisational restructuring, project modifications, or the introduction of new stakeholders. However, this transfer is not a simple process. Two primary legal mechanisms – assignment and
novation – serve to facilitate such changes. Although both mechanisms enable the modification of contractual relationships, they operate in fundamentally different ways and carry distinct legal and practical consequences.
Assignment involves the transfer of legal or equitable rights from one legal entity to another. These rights may pertain to tangible property, such as land or personal possessions (chattels), or to intangible rights, including contractual entitlements or claims arising from tortious conduct.1 In construction projects, a contractor’s primary – if not sole – interest in the contract typically lies in the right to receive payment for completed work. This right is generally assignable by the contractor. Conversely, for the project owner, the principal benefit of a construction or engineering contract is the entitlement to have the contractor carry out specified work. While this benefit may also be assigned, the assignee cannot demand performance
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