ABSTRACT
A construction contract is a compact of rights and obligations. The law does in general permit parties to a construction contract to take steps to transfer the rights and obligations associated with contract. A contractor may seek to delegate the performance of its obligations to subcontractors or suppliers who may have particular skills or resources that the contractor does not possess. One of the potential advantages to a main contractor of subcontracting some part or all of its works. Furthermore, either party to a contract may be able to transfer its rights under the contract to another person with the consequence that it can realise its interest in a construction or engineering project before completion of the project. It may do by way of novation, which requires the mutual consent of all parties to the transfer of obligations. Finally, there are circumstances where a party to a contract will be taken to have given up its rights under the contract.
