Step-in rights clause (collateral warranty)
Step-in rights clause (collateral warranty)

The following Construction guidance note provides comprehensive and up to date legal information covering:

  • Step-in rights clause (collateral warranty)
  • Step-in rights

Step-in rights

  1. 1

    The Contractor agrees that it will not without first giving the Beneficiary not less than [twenty-eight (28)] days’ notice in writing exercise any right it may have to terminate the Building Contract or to treat the same as having been repudiated by the Employer or to discontinue the performance of any obligations to be performed by the Contractor under the Building Contract. The Contractor's right to terminate the Building Contract with the Employer or treat the same as having been repudiated or discontinue performance shall cease if within such period of notice and subject to clause 3 the Beneficiary shall give notice in writing to the Contractor requiring the Contractor