Blog #26: Protect Your Rights
In today’s economy, it’s understandable for construction clients to worry: “If my contractor goes out of business, who will warranty my project?” They don’t want to get stuck with repairs if anything goes wrong.
But there’s good news to address this concern.
Most contractor agreements include a performance bond. If so, the company issuing the performance bond will guarantee the warranty items.
The performance bond shows up in the “surety underwriting manual general provisions.” Obviously, if we are getting this technical, it’s worth contacting your attorney to confirm the surety underwriting manual general provisions apply to the contractor’s bond.
How else should you protect your rights?
o Have in writing an agreement when the contractor completes the project and the building owner accepts the building. This is the date the warranty period begins.
o Have an agreement with the bonding company for the release final payment to the contractors. It’s important that the bonding company participates in whether and how the contractor gets paid at project end, because the bonding company is responsible for picking up the costs for the warranty.
o All warranty issues are communicated in writing with the contractor and, if needed, with the bonding company.
o In all communications, be clear that the problem is a warranty issue and not the result of your own actions.
o If the contractor does not respond to the warranty issues, notify the bonding company and allow them to correct the warranty item. If you fix the warranty issues yourself, don’t expect the bonding company will reimburse you.
The best solution to warranty concerns? Start with a great contractor that will be there for you and your building over the long term.
Give us a call for a worry-free building warranty.