Three Party Agreements
A tripartite agreement is a transaction between three separate parties. In the mortgage sector, during the construction phase of a new residential or residential complex, there is often a tripartite or tripartite agreement to guarantee bridge credits for the construction itself. In this case, the loan agreement concerns the buyer, the lender and the owner. Another example is obtaining all the necessary consents, a tenant`s commitment that is usually included in each change license. The contractor must be very careful in carefully considering the commitments he may make to the employer/tenant as part of the third-party agreement with respect to his obligations under the construction contract. This may be a classic case of bonds imposed by backdoors. For example, the construction contract may be completely silent as to who should obtain the building permit. In addition, the construction contract may provide that the contractor is only required to assist the employer in obtaining all necessary consents, but the onus is on the employer to obtain them. If the amending licence stipulates that the tenant is absolutely obliged to obtain the necessary authorizations to carry out the work (e.g.B. building permit, allocation of the party, etc.), which he will often do, the contractor will assume this obligation under the contractual clause of third parties, as if it were directly stipulated in the contract of work. The employer/tenant can then simply refer to this clause and say that this obligation, since it relates to the performance of the work, is included in the construction contract and represents the risk to the contractor.
The situation may be aggravated if the amendable licence also provides that the lessor is compensated for any liability for non-obtaining consent, authorization or license, etc. If the tenant/employer decides to proceed or not obtain the permit before obtaining the building permit, the contractor`s responsibility is responsible for the enforcement action taken by the planning authorities. In fact, the opposite should happen – the contractor should seek compensation from the employer/tenant if he orders the work to work without planning. There are potentially many problems that lurk in third-party agreements that can be imposed on contractors. Some may be obvious, others may be hidden and not immediately obvious. A more effective approach is for the employer to identify the obligations that the contractor actually needs to meet them and pass them on only in the change plan. However, in our experience, it is rare for this exercise to be done – the time, effort and associated costs are repugnant, so the employer is content to pass the entire third-party agreement in the wholesale trade. For the contractor, it is then to detect potential conflicts or additional obligations, such as looking for a needle in a haystack.