How do warranty claims work in construction contracts?

On Behalf of | Jan 28, 2025 | Construction Contracts |

Warranties are an important part of construction contracts. They provide assurance that the work performed meets certain standards and that any defects will be corrected. Understanding how warranty claims work can help both contractors and property owners address issues that arise after a project is completed.

What is a construction warranty?

A construction warranty is a promise made by the contractor to repair or replace defects in the construction work. These defects might include structural problems, faulty materials, or substandard workmanship. Warranties are typically divided into two types: express warranties, which are clearly stated in the contract, and implied warranties, which are not explicitly written but are still enforceable under construction law.

Duration of construction warranties

The length of a construction warranty can vary depending on the terms of the contract and the type of work performed. Some warranties may cover only one year, while others may last several years. For example, structural warranties often last longer than warranties for minor repairs. It’s important for both the property owner and the contractor to clearly define the warranty period in the contract to avoid confusion later.

How to file a warranty claim

If a defect arises during the warranty period, the property owner can file a warranty claim with the contractor. This typically involves notifying the contractor in writing about the issue, describing the defect, and requesting a resolution. The contractor is usually obligated to either fix the issue or provide compensation. If the contractor refuses or fails to address the claim, the property owner may pursue legal action or take the matter to court.

Resolving warranty disputes

Disputes can occur if there is disagreement over whether the defect is covered under the warranty. To avoid such conflicts, contracts should clearly outline the warranty terms, including what is covered, the process for making claims, and the remedies available to the property owner. Seeking legal counsel can help ensure that the warranty is properly enforced and that the rights of both parties are protected.

FindLaw Network