Jeff Brown claims third-party rights don鈥檛 work (27 October, page 54), but his objections come down to not liking the particular third-party rights in the JCT contract.

JCT third-party rights could be improved upon, but are they as bad as Brown says? Yes, beneficiaries often reject a net contribution clause, but not all the JCT third-party rights schedules have one. When it comes to maintaining professional indemnity cover, why would the contractor be obliged to do so under third-party rights unless he were similarly obliged under the building contract?

If it is true that the third-party rights will have nothing to 鈥渂ite on鈥� where the terms of the building contract have not been agreed, the same is likely to be true of a collateral warranty. As for 鈥渢he need to obtain warranties from consultants鈥�, what need? Third-party rights are just as suitable for consultants鈥� appointments.

If you do not like the particular third-party rights granted by the JCT, amend them. I do not think they would necessarily have to be 鈥渉eavily amended鈥�, but since when have lawyers been deterred from heavily amending JCT contracts? If necessary, replace them with your own third-party rights.

Alan Erwin, Fladgate Fielder

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