Resolving Warranty And Guaranty Confusion In Construction

By Michael Scheffler (November 14, 2019, 4:00 PM EST) -- The most confusion I have seen in the discussion of construction topics concerns the concepts of "warranty" and "guaranty."

This article will address the confusion, explain the important distinctions between these two concepts, and describe how to effectively administer and enforce warranty and guaranty provisions in construction contracts.

Warranty

In a typical construction contract warranty provision, the contractor warrants, represents or covenants, that its work will be performed in accordance with certain standards stated in the contract (e.g., in "a good and workmanlike manner") and otherwise be free of defects and in conformity with the design documents. While the terms "warranty"...

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