Q&As

Does an employer still get the benefit of a collateral and/or manufacturer’s warranty if it carries out remedial works itself or will it lose the benefit?

read titleRead full title
Produced in partnership with Ryan Turner of Lamb Chambers
Published on LexisPSL on 08/08/2019

The following Construction Q&A produced in partnership with Ryan Turner of Lamb Chambers provides comprehensive and up to date legal information covering:

  • Does an employer still get the benefit of a collateral and/or manufacturer’s warranty if it carries out remedial works itself or will it lose the benefit?

Does an employer still get the benefit of a collateral and/or manufacturer’s warranty if it carries out remedial works itself or will it lose the benefit?

In construction, a collateral warranty is ancillary to either a building contract, sub-contract or a consultant’s appointment. The warranty creates a contractual link where there would not normally be one, thereby enabling a third party, such as a purchaser or tenant occupying or buying recently completed buildings, to have a direct contractual relationship with a construction team member. An employer will also often receive the benefit of a collateral warranty from sub-contractors and consultants, where their appointment has been novated to the contractor, as it would otherwise not have a direct contractual link to those members of the construction team. The beneficiary can then rely upon the undertakings or

Popular documents