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In a novation, when all parties agree, one party in a two-party agreement gives up all rights and obligations outlined in a contract to a third party. A novation agreement is a legal contract that transfers contractual obligations of one party to a third party.This subpart prescribes policies and procedures for-. Contractors should also take note that the novation process often takes three to six months to complete. However the 'burden', or obligations, under a contract cannot be transferred. Assignment in construction contracts. Transfer of the entire portion of assets involved in the performance of the contract has occurred. This section provides a comprehensive model novation agreement that covers more aspects of novation agreements than you will find in the FAR. In other words, they will need to complete a novation agreement. Win a full music studio from Novation - Terms and Conditions.