Notice of Assignment

A notice of assignment is a formal communication that informs a party to a contract that the rights, obligations, or benefits under the contract have been transferred to another party. In construction, a notice of assignment may be used when a contractor assigns their payment rights to a lender or supplier, or when an owner assigns their ownership interest to a new buyer or tenant. The notice typically includes the identification of the assignor, assignee, and the contract being assigned, the effective date and scope of the assignment, and the instructions for future performance or communication. The purpose of a notice of assignment is to ensure that all parties are aware of the change in the contractual relationship, to protect the rights and interests of the assignee, and to facilitate the smooth continuation of the contract. A notice of assignment should be provided in writing, in accordance with the contract’s notice provisions, and with the consent or acknowledgment of the non-assigning party.