What do you really need for a collateral warranty on a construction project? This post sets out the graveyard ie those clauses your warranty DOESN’T need. (tl;dr anything beyond a promise to comply with the underlying contract is probably unnecessary) Quality, copyright and insurance Most warranties go above and beyond
During my decades reviewing construction contracts, often the worst ones are subcontracts. These are the three ways in which they are abused. Dumping on your subcontractor Main contractors (through their contract terms) are guilty of some of these sins: making their subcontractors sign up to all sorts of nasties that
If we look behind the tick-box approach to collateral warranties, do we need to think again about taking a process approach to these largely ineffective agreements? Purpose of a warranty The core purpose of a warranty is to create an additional contractual link, providing a smooth avenue for a stakeholder
There are two key ways to limit the supplier’s liability for claims arising from a project. First, the contract should clearly define the extent of your supplier’s obligations, so both parties really understand what your supplier is responsible for. Secondly, your contract can include limits – in time or money
Contracts are not just about what scope your supplier is providing – they also explain how you are going to work with your supplier. For example, a subcontract should set out the processes for getting the subcontract works to dovetail smoothly into the wider project. Procedures deal with everything from
Your contract can create trust and make your lives infinitely better if it includes simple remedies. These are contractual processes that deal with what happens when the project doesn’t go precisely to plan. All express (contractual) remedies are far simpler, cheaper and quicker to use for both parties. They provide
Why does the world need another book? The last book in my series on Construction Contracts in Just 500 Words was published on 5 November – to reflect the UK tradition of putting rockets up the establishment. I’m not trying to blow up Parliament as Guido Fawkes was, but merely prompting the
There is no such thing as a risk-free construction project. You may not work in construction or engineering, but there is no such thing as a risk-free project in any sector! Each project team, scope, parties, end-user, location, specification and so on is unique. No-one can guarantee what will happen
Your contract needs to reflect a variety of aims or objectives for the parties and for the project or task: Core Aims It is trite to say projects need to balance time, cost and quality. That means any contract has to strike a balance between getting the goods, works or
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