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Contractor Warranty Agreement

Contractor Warranty Agreement Template for England and Wales

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Key Requirements PROMPT example:

Contractor Warranty Agreement

"Need a Contractor Warranty Agreement for a large commercial office development in Manchester, where the main contractor must provide warranties to both the anchor tenant and the project funder, with specific emphasis on sustainable building practices and a 12-year liability period."

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Document background
The Contractor Warranty Agreement is commonly used in construction projects where third parties (such as purchasers, tenants, or funders) require direct contractual rights against contractors. Under English and Welsh law, this document bridges the gap between the main construction contract and third-party interests, providing essential protections and remedies. The agreement typically includes warranties about workmanship, materials, design (if applicable), and compliance with standards. It's particularly important in commercial developments where future occupiers or funders need assurance about the quality and standards of construction work.
Suggested Sections

1. Parties: Identifies and defines all parties to the warranty including the contractor, beneficiary, and employer

2. Background: Context of the warranty, relationship to main contract, and project overview

3. Definitions: Key terms used throughout the document including Project, Works, Services, and Professional Team

4. Contractor's Warranties: Core warranties regarding workmanship, materials, compliance with law and standards

5. Duration of Liability: Time limits for warranty claims and limitation periods

6. Insurance Requirements: Professional indemnity and other insurance obligations including minimum coverage amounts

7. Assignment and Third Party Rights: Provisions regarding transfer of warranty rights and third-party beneficiaries

8. Governing Law and Jurisdiction: Specification of English and Welsh law as governing law and jurisdiction details

Optional Sections

1. Step-in Rights: Rights of beneficiary to step into contractor's position in case of contractor default or main contract termination

2. Copyright License: Rights to use design documents and materials where contractor has design responsibilities

3. Deleterious Materials: Specific warranties regarding hazardous materials and prohibited substances

4. Performance Standards: Specific performance and quality standards beyond basic warranty obligations

Suggested Schedules

1. Schedule 1 - Main Contract Extract: Relevant excerpts from the main construction contract defining scope of works

2. Schedule 2 - Professional Indemnity Insurance Details: Specific insurance requirements, levels of coverage, and duration of insurance maintenance

3. Schedule 3 - Project Details: Specific details of the construction project including location, scope, and specifications

4. Schedule 4 - Form of Notice of Assignment: Template for assigning warranty rights to third parties

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓƵ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

alex.den.21@genieai.co
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Relevant Industries
Relevant Teams
Relevant Roles
Industries

Contracts (Rights of Third Parties) Act 1999: Key legislation governing third-party rights in warranty agreements, particularly relevant for collateral warranties and determining third-party enforcement rights under the contract

Housing Grants, Construction and Regeneration Act 1996: Primary legislation governing construction contracts, including payment provisions and dispute resolution procedures that may affect warranty terms

Supply of Goods and Services Act 1982: Establishes quality of service requirements and implied terms regarding reasonable care and skill in service contracts

Defective Premises Act 1972: Sets out duties regarding workmanship and materials, including fitness for purpose obligations in construction work

Common Law Contract Principles: Fundamental principles including offer, acceptance, consideration, intention to create legal relations, and capacity to contract

Professional Negligence Principles: Legal framework covering duty of care, standard of care, and liability periods for professional services

Limitation Act 1980: Defines statutory limitation periods for bringing claims under the warranty agreement

Professional Indemnity Insurance Requirements: Regulatory and practical requirements for maintaining professional indemnity insurance coverage

Design Liability Principles: Legal principles governing responsibility and liability for design elements in construction projects

Assignment and Novation Rights: Legal framework governing the transfer of warranty rights and obligations to third parties

Step-in Rights: Legal mechanisms allowing specified parties to take over the contractor's role in certain circumstances

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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