This Practice Note looks at why assignment of rights is an important issue in construction and when parties might need to assign their rights. It explains how assignment differs to novation, and sets out the steps to be taken to effect a valid assignment. It also looks at the effect of an assignment and the issues that parties should be aware of when bringing claims following assignment. It also notes the implications of the Business Contract Terms (Assignment of Receivables) Regulations 2018.

When reviewing the assignment provisions in a construction contract, see: Assignment of construction documents—checklist for details of the key issues to consider. For guidance on how assignments in construction may be restricted, see Practice Note: Restrictions on the assignment of rights in construction contracts.