Collateral warranties

Copyright © 2026 LexisNexis

In the UK construction industry, the grant of third party rights, is an essential part of the project documentation that needs to be put in place for construction projects. Such rights are often granted through the use of collateral warranties. Although many in the industry clung to the traditional collateral warranty route, the alternative route of granting rights under the Contracts (Rights of Third Parties) Act 1999 (C(RTP)A 1999) has slowly become more popular. For more information on collateral warranties and third party rights, and a range of other performance security documents that can be provided on a construction project, see Practice Note: Performance security in construction. See also Checklist: Who gets a collateral warranty or third party rights? For more information on the (C(RTP)A 1999) in construction, see The Contracts (Rights of Third Parties) Act 1999 in construction contracts.

What is a collateral warranty?

A collateral warranty is a contract which is collateral to (ie sits alongside) an underlying a contract. See Practice Note: What are collateral warranties?

In construction, a collateral warranty is typically collateral to either a building contract,...

To view the latest version of this document and thousands of others like it, sign-in with LexisNexis or register for a free trial.

Existing user? Sign-in TAKE A FREE TRIAL
Powered by Lexis+®
Latest Construction News

Welsh Government publishes guidance on issues arising from external wall insulation installations

The Welsh Government has published guidance for householders on identifying and addressing potential problems with external wall insulation (EWI)...

Construction weekly highlights—5 November 2026

This week's edition of Construction weekly highlights includes: a First-tier Tribunal (FtT) decision in on remediation contribution orders and...

Welsh Government confirms plans to extend overheating requirements to existing homes

The Welsh Government has published its response to a consultation on proposed amendments to Part O of Schedule 1 to the Building Regulations 2010, SI...

Settlement and subsequent defects claims—when are further proceedings abusive? (United Living v Dovista)

Construction analysis: The Technology and Construction Court (TCC) refused to strike out further claims brought against an architect after earlier...

View Construction by content type :  
News
Practice notes
Precedents
Q&As

Popular documents

What is the difference between an appeal and a review?

What is the difference between an appeal and a review?What is an appeal?An appeal in insolvency proceedings is no different to an appeal in normal litigation. An appeal will be allowed only if the appeal court is satisfied that the decision of the lower court was 'wrong' or 'unjust because of a

If a rentcharge is shown as being informally exonerated on title information, does this apply to the

If a rentcharge is shown as being informally exonerated on title information, does this apply to the current registered owner? Or does the informal exoneration only apply to the parties to the document which informally exonerated the rentcharge?This Q&A considers the situation where, at some point

Strike out—making an application to strike out a statement of case

Strike out—making an application to strike out a statement of caseA strike out order can be made either following an application by the parties or on the court's own initiative. This Practice Note deals with the scenario of the order being made following a party's application.Making an application

Template for regulatory references given by SMCR firms and disclosure requirements

Template for regulatory references given by SMCR firms and disclosure requirements[Insert addressee details]Dear [insert name][It is our understanding that [insert name of prospective employee] [was an employee of yours between the dates of [insert dates as appropriate] OR is a current employee of
What is the difference between an appeal and a review?

What is the difference between an appeal and a review?

What is the difference between an appeal and a review?What is an appeal?An appeal in insolvency proceedings is no different to an appeal in normal litigation. An appeal will be allowed only if the appeal court is satisfied that the decision of the lower court was 'wrong' or 'unjust because of a

If a rentcharge is shown as being informally exonerated on title information, does this apply to the

If a rentcharge is shown as being informally exonerated on title information, does this apply to the

If a rentcharge is shown as being informally exonerated on title information, does this apply to the current registered owner? Or does the informal exoneration only apply to the parties to the document which informally exonerated the rentcharge?This Q&A considers the situation where, at some point

Strike out—making an application to strike out a statement of case

Strike out—making an application to strike out a statement of case

Strike out—making an application to strike out a statement of caseA strike out order can be made either following an application by the parties or on the court's own initiative. This Practice Note deals with the scenario of the order being made following a party's application.Making an application

Template for regulatory references given by SMCR firms and disclosure requirements

Template for regulatory references given by SMCR firms and disclosure requirements

Template for regulatory references given by SMCR firms and disclosure requirements[Insert addressee details]Dear [insert name][It is our understanding that [insert name of prospective employee] [was an employee of yours between the dates of [insert dates as appropriate] OR is a current employee of