Imagine a third party as someone who is not directly involved in a transaction, but who may be affected. The third party usually has no legal rights to the transaction, unless the contract is to its advantage. The negotiation, design and agreement of most contracts with third parties (whether real estate or financial) are usually determined by factors more urgent at this stage than the prevention of conflicts between their final terms and those of a construction contract. As simple construction lawyers, we will be involved much later in the process or where the contractor may not have been involved. In fact, the lease, modification license or financing agreement are therefore often presented to the contractor as a fait accompli – it is “what it is”. There is no room for manoeuvre and the owner/funder does not accept anything else. From the employer`s point of view (e.g. B the tenant or borrower), he does not wish to be exposed to a risk because he has agreed on something “on the line”, but he cannot induce the contractor to reflect the same obligations “on the line”. Therefore, the employer will simply want the contractor to assume all its obligations (to the extent that they relate to the work) in order to avoid any potential shortcomings.
But wait a minute – just because the employer agreed on something in the series (to get his lease or to be able to use funds) why would the contractor keep the baby? It seems that it has recently become a recurring issue in the revision of amendments to construction contracts that the contractor accepts all the employer`s commitments, commitments and risks within the framework of agreements relating to the execution of the works, as if these obligations were set out in the construction contract. Typical third-party contracts may include a lease agreement or modification license agreed with the employer`s lessor or a financing agreement with a bank. An obvious example is timing. A modification licence or lease often involves the obligation for the lessee to obtain that the work be completed on a specific date or on a specified date after the conclusion of the contract.. . . .