Do you know about the Contracts (Rights of Third Parties) Act 1999? If not, you should do.

Act now

The Contracts (Rights of Third Parties) Act 1999 came into force last November and applies to all contracts entered into after 11 May 2000. You can then be sued by third parties (the client, future tenants, purchasers etc) for late completion etc, as well as still being liable for late completion damages to the contractor. It is vital that you exclude the Act from contracts. To do it you must expressly negate third parties’ rights in any contract drawn up.

Source

Electrical and Mechanical Contractor

Postscript

Della Johnson is an associate with law firm Veale Wasbrough.