It is important to be aware of the scope of the publication and its timetable and to adapt the development of innovation accordingly. An understanding of the “first principles” of the innovation concept is essential. Incomprehension can lead to unintended consequences. In MWH Australia Pty Ltd/Wynton Stone Australia Pty Ltd (in liq), for example, the Victorian Court of Appeal complained of a poorly developed “transfer agreement” and stated: “Novation and the form of the innovation agreement must be agreed from the outset if consultants are appointed, otherwise consultants will not be required to approve a Novated. The agreement of all parties is necessary for innovation and, therefore, the agreement is generally tripartite, between the employer (client), the advisor and the contractor. An innovation agreement is not possible without authorization. If no innovation agreement and the form of the innovation agreement were concluded at the first appointment of the consultant, they are not required to accept a novated. It is therefore essential that the main contracts between the contracting authorities and the consultants, as well as between the contracting powers and the contractors, contain explicit conditions requiring the contractor and the advisor to enter into the innovation contract. In order to avoid the risk of concluding only an unenforceable agreement, the initial documentation of the contract should be accompanied by a proposed innovation agreement model. If, as part of its initial agreements with the employer, an employer does not obtain the agreement of the advisor and contractor on a possible innovation, there will be no prior agreement from these parties on innovation at a later stage. If the parties are “on board” for the original employment, it is ensured that the parties are “on board” and that such innovation is possible if they force innovation.
A design consulting innovation occurs when a consulting agreement between an employer and an advisor for the first construction services is replaced by a new contract (usually) under the same conditions under which the contractor mandates the advisor, as if the contractor had initially entered into a contract with the consultant. A novation agreement documents this change in the relationship between the parties. In an ideal world, the form of the innovation agreement, including the advisor`s (and contractor`s) agreement on any innovation at the employer`s discretion, is added as an annex to the original agreement that appoints the advisor and the construction contract that appoints the contractor. “To the extent that it uses the nomenclature of transmission, it has been clearly written and executed by individuals who do not fully understand the Innovation Act.” Therefore, the parties should seek to clarify the effects of innovation on the accumulated rights, rights and claims associated with the original contract, as well as on all future rights, rights and claims. The contractor and architect must cooperate closely for each design and construction project, but this is especially important when an innovation has taken place. Novation is often criticized for weighing more on relations between these parties. Without a good relationship, the project is more likely to be negatively affected and critical issues such as time and costs will suffer.