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What are construction warranties?

by pietheinbredero

What are construction warranties?​

Construction warranties are legally binding agreements that provide assurance to the owner or buyer of a construction project that the work performed by the contractor or builder will meet certain standards and will be free from defects for a specified period of time.​ These warranties are typically included in construction contracts and are meant to protect the owner from unexpected repairs and costs that may arise due to faulty workmanship or materials.

Types of Construction Warranties

There are several types of construction warranties that may be included in a construction contract⁚

  1. Implied warranties⁚ These are warranties that are automatically implied by law and do not need to be explicitly stated in the contract. They include the implied warranty of habitability, which ensures that the completed structure is suitable for living or working, and the implied warranty of workmanship, which guarantees that the work performed will be done in a skillful and professional manner.​
  2. Express warranties⁚ These are warranties that are explicitly stated in the contract and are agreed upon by both parties.​ They may include specific guarantees about the quality of materials used, the performance of certain systems or components, or the durability of the completed structure.​
  3. Manufacturer warranties⁚ These are warranties provided by the manufacturers of certain products or materials used in the construction project.​ They typically cover defects in the materials and may have their own terms and conditions.​
  4. Extended warranties⁚ These are warranties that go beyond the standard warranty period and provide additional coverage for a longer period of time.​ They may be offered by the contractor or builder as an added benefit or may be purchased separately.​

Benefits of Construction Warranties

Construction warranties provide several benefits to the owner or buyer of a construction project⁚

  • Peace of mind⁚ Warranties give the owner confidence that the work performed will meet certain standards and will be free from defects. This reduces the risk of unexpected repairs and costs.​
  • Protection against defects⁚ Warranties provide a legal recourse for the owner in case any defects or deficiencies are discovered in the construction project.​ The contractor or builder is responsible for rectifying these issues within the warranty period.​
  • Quality assurance⁚ Warranties incentivize the contractor or builder to perform the work in a professional and skillful manner.​ They serve as a guarantee of the quality of workmanship and materials used.​
  • Increased resale value⁚ Having a construction warranty in place can increase the resale value of the property, as it provides assurance to potential buyers that the construction work was done properly and that they will be protected against any defects.​

Limitations of Construction Warranties

It is important to note that construction warranties have certain limitations⁚

  • Warranty periods⁚ Construction warranties have a limited duration, typically ranging from one to ten years.​ Once the warranty period expires, the owner is responsible for any repairs or maintenance.​
  • Exclusions and limitations⁚ Warranties may have certain exclusions and limitations, such as normal wear and tear, acts of nature, or improper maintenance by the owner.​ It is important to review the warranty terms and conditions to understand what is covered and what is not.​
  • Enforcement challenges⁚ Enforcing a construction warranty can sometimes be challenging, especially if the contractor or builder is no longer in business or disputes the validity of the warranty claim.​ It is advisable to consult with legal professionals to understand the options available for enforcing the warranty.

Construction warranties are important legal agreements that provide assurance to owners or buyers of construction projects.​ They protect against defects and provide peace of mind, quality assurance, and potential resale value.​ However, it is essential to understand the types of warranties, their limitations, and the process for enforcing them to ensure maximum benefit.​

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