Tag: collateral warranties

The collateral warranty graveyard – clauses you don’t need

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

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Future of warranties

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

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More paperwork, no solutions

Collateral warranties (if you don’t know what they are, read what is a collateral warranty) are common on UK construction projects. The problem that they were designed to address is that if the works or services are performed defectively then it won’t necessarily be the employer of the wrongdoers who

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What is a collateral warranty?

A collateral warranty is a simple document designed to create contractual links between the provider of goods, works or services (the warrantor) and a party with a financial interest in the project (the stakeholder). [This definition is taken from the Introduction to How to Write Simple and Effective Collateral Warranties

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Can you avoid collateral warranties?

One definition of insanity (attributed to, but never said by, Albert Einstein) is ‘doing the same thing over and over again and expecting different results.‘ This is how it feels to work with collateral warranties. If you don’t know what a collateral warranty is then head to what is a

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A photo of an art installation at Yorkshire Sculpture Park where letters dangle down a wire like beads on a curtain. In the background are the grounds of the park including a high hedge. The letters represent the text included in collateral warranties and other contracts. Photo by Sarah Fox
Sarah Fox

Critical questions for reviewing collateral warranties

Warranties, in construction, are unusual documents. The two parties (the companies who sign the warranty) rarely meet and have little communication with and no control over each other. A collateral warranty is: an agreement between a provider of goods, works or services (the warrantor) and a tenant, purchaser or funder

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