A novation needs to be properly documented and, if possible, the employer's initial agreement with the consultant and the contractor should require them to enter into a novation agreement if the employer later so elects.   

How does it work?

A design consultant novation occurs when a consultancy agreement signed between an employer and consultant for initial design services, is replaced with a new contract on (usually) the same terms, under which the contractor engages the consultant as if the contractor had originally contracted with the consultant. A novation agreement documents this relationship change between the parties.