We are drafting Contract Data for contract for works on a leased building to include Secondary Option X8 requiring a Collateral Warranty with Main Contractor and Building Owner.
By using an X8 undertaking (Collateral Warranty) in favour of the Owner (3rd Party), then we are not relying on Y(UK)3 for the 3rd part rights.
So, what do you do to Y(UK)3 when using X8? Is there a conflict?
- If we expressly exclude Y(UK)3 by stating “none”, then do we contradict X8 that asks for the Collateral Warranty for a 3rd party?
- Do you need to strike through Y(UK)3 altogether? Although i believe you cant exclude rights under statute law that way?
- Do we refer to the X Warranty in the Y(UK)3 option?
i.e Term = X8 Warranty Beneficiary = Building Owner.
Comment and opinion much appreciated.