Privity of contract
A legal doctrine stating that contracts are only binding on parties to the contract.
Privity of contract limits the rights and obligations to the parties involved in a contract, preventing third parties from claiming benefits or enforcing terms. This doctrine protects contractual agreements from external interference, ensuring that only the involved parties have legal standing in disputes or claims.
Used in a sentence
Due to privity of contract, only parties involved can enforce the contract terms.
Stay updated on what’s happening in construction.
Subscribe to Blueprint, Procore’s free construction newsletter, to get content from industry experts delivered straight to your inbox.
Learn MoreLearn more about Privity of contract
Defending Against Financial & Legal Risks on Megaprojects
The construction industry has seen marked growth in megaprojects. Some experts classify any project over $500 million as a megaproject, while others argue that the build needs to be $1 billion or more. Wherever the threshold lies, one fact remains: these are complex, high-risk builds. One study out of Oxford University says that nine out […]
Construction Defects: What Contractors Need to Know
Every builder aims to deliver high-quality projects that delight clients and enhance their reputation. However, construction defects—flaws in design, materials or workmanship—can emerge during or after construction, necessitating collaboration with owners for remediation. Understanding construction defects can help companies reduce the risk of delays and financial losses associated with defect claims. While many defects can […]
The Impact of Policy on Data Center Siting
Data centers are in the spotlight, and data center construction is increasingly a policy issue on lawmakers’ agendas at every level of government. Developers face a rapidly shifting regulatory landscape and a spike in opposition to data center construction at the local, state and federal levels. They must now navigate an landscape that can impact […]
Hospital Building Codes: Understanding Construction Code Requirements
Building codes in construction represent a minimum quality standard in the built world. Creating and upholding building codes means users can trust that structures are safer and more resilient to natural disasters. Specialized building codes — like those in place for medical facilities — ensure the safety, functionality and efficiency of hospitals, and help make […]
How can we improve this glossary entry?
By clicking this button, you agree to our Privacy Notice and Terms of Service.