The following Construction practice note provides comprehensive and up to date legal information covering:
A warranty'>collateral warranty is a contract which is collateral to, or sits alongside, the underlying or primary contract (ie the construction contract or consultant's appointment). Most collateral warranties refer to the duties and obligations set out in the underlying contract and the warrantor warrants to the third party that it has performed those duties and obligations in accordance with the contract. For more information on collateral warranties generally, see Practice Note: What are collateral warranties?
The JCT published a number of standard form collateral warranties, of which the following are the most widely-used:
JCT Contractor Collateral Warranty for a Funder (CWa/F)
JCT Contractor Collateral Warranty for a Purchaser or Tenant (CWa/P&T)
JCT Sub-Contractor Collateral Warranty for the Employer (SCWa/E)
JCT Sub-Contractor Collateral Warranty for a Funder (SCWa/F)
JCT Sub-Contractor Collateral Warranty for a Purchaser or Tenant (SCWa/P&T)
For a summary of the differences between the 2011 and 2016 versions, see News Analysis: JCT Collateral Warranties 2016 published.
The JCT's intention is for these forms to be used with the JCT Standard Building Contract (SBC), JCT Intermediate Building Contracts (IC and ICD), JCT Design and Build Contract (DB) and JCT Prime Cost Contract (PCC).
The JCT Minor Works Contracts (MW and MWD) do not envisage the contractor or any of its sub-contractors providing collateral warranties, as these forms are intended for works of smaller value,
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