Guarantees are used as proof of a primary contract when an agreement is to be reached with a third party outside the primary contract. Sometimes an architect, contractor or subcontractor must assure a funder, tenant or buyer that they have fulfilled their obligations under a construction contract. Just as we should never give advice in isolation without understanding the particularities of a workstation (i.e. where it is, what is built, is it a high risk or a high risk to the mill, etc.) and the impact that these specific factors can have on the completion of work in practice, third-party agreements should not be negotiated and negotiated in isolation. Without consultation with contractors and/or construction professionals, it is little or no way to think about how these agreements are related to the contractor`s obligations under the construction contract and the reality of the practical work. One of the main concerns of developers (as well as their tenants, funders and future buyers of their developments) is to ensure that in the absence of a direct contract with the contractor and the professional team involved in the project, third parties can obtain direct recourse protection in the event of a design or design error. For many years, the only option available to third parties was to obtain guarantees from the contractor and each member of the professional team, but with the introduction of the “Rights of Third Parties) Act in 1999 (the law) more than fifteen years ago, those who were not parties to a contract could benefit directly from its terms. This gave rise to the hope in the sector that guarantees of guarantees would become redundant, since buyers, tenants, funds and other potential beneficiaries could use the law to directly benefit from the terms of a construction contract or a professional appointment, instead of needing protection as part of a separate guarantee guarantee. The text that will be included in the amendment plan usually writes to the contractor as follows: the contractor has read and is fully aware of the third party agreements (even if he is not aware of them at all and has generally not received a copy of them), he must not miss the employer`s obligations under these agreements and must fulfil all obligations arising from these agreements, as if they were directly included in the contract. Therefore, all provisions of the third-party contract that impose an obligation on the employer with respect to the work should also be understood as an obligation for the contractor. It`s as simple as that.

How and why did this happen? Construction projects are often guarantees and third-party rights, so that third parties (such as funders, buyers, tenants, etc.) can claim the benefits (or benefits) of a contract in which they do not participate. Section 3 of the Act may make it more difficult for the recipient to assert rights: it introduces a surtax for the party that confers the rights, so that litigation under the original contract may infringe the rights of the beneficiary.