Warranty
The term 'warranty' can have a number of meanings, but in general, it refers to a legally binding assurance or promise.
Warranties may be used to provide assurance from one party to another that goods and/or services will meet certain expectations, e.g. fit for purpose, being free from defects, complying with statutory and other regulations and specifications.
A warranty can be either express (i.e. written) or implied.
A common form of warranty, and one that is paid for, is that which runs with a product, meaning that the customer of a product is given an assurance by the manufacturer that any defects or losses will be repaired or compensated during a given period. The warranty can also detail both parties’ rights and obligations in the event of a dispute.
Defects in buildings are not recoverable in tort (only as a contractual claim), as they are economic loss which are only recoverable through a contractual relationship. As a result, collateral warranties have been developed. These provide for a duty of care to be extended by one of the contracting parties to a third party who is not party to the original contract.
A typical example is an architect of a new development agreeing to a duty of care to the occupant. Privity of contract rules would prevent any liability arising between the architect and occupier without the existence of a collateral warranty.
For more information see: Collateral warranties.
Bonds and guarantees are forms of security that accompany contractual obligations and are based on either primary or secondary obligations.
For more information, see Guarantees.
Other forms of assurance that might be referred to on construction projects include:
- Fitness for purpose.
- Reasonable skill and care.
- Workmanlike manner.
- Good faith.
- Reasonable endeavours.
- Best endeavours.
- Retention.
- Duty of care.
[edit] Related articles on Designing Buildings
- Agency.
- Bonds.
- Bonds v guarantees.
- Breach of contract.
- Collateral warranties.
- Defects.
- Definition of collateral warranty.
- Difference between collateral warranties and third party rights.
- Duty.
- Fit for purpose.
- Guarantees.
- Insurance.
- Miller Act.
- Performance bond.
- Practical considerations of collateral warranties.
- Professional consultant's certificate.
- Reasonable skill and care.
Featured articles and news
The challenge as PFI agreements come to an end
How construction deals with inherit assets built under long-term contracts.
Skills plan for engineering and building services
Comprehensive industry report highlights persistent skills challenges across the sector.
Choosing the right design team for a D&B Contract
An architect explains the nature and needs of working within this common procurement route.
Statement from the Interim Chief Construction Advisor
Thouria Istephan; Architect and inquiry panel member outlines ongoing work, priorities and next steps.
The 2025 draft NPPF in brief with indicative responses
Local verses National and suitable verses sustainable: Consultation open for just over one week.
Increased vigilance on VAT Domestic Reverse Charge
HMRC bearing down with increasing force on construction consultant says.
Call for greater recognition of professional standards
Chartered bodies representing more than 1.5 million individuals have written to the UK Government.
Cutting carbon, cost and risk in estate management
Lessons from Cardiff Met’s “Halve the Half” initiative.
Inspiring the next generation to fulfil an electrified future
Technical Manager at ECA on the importance of engagement between industry and education.
Repairing historic stone and slate roofs
The need for a code of practice and technical advice note.
Environmental compliance; a checklist for 2026
Legislative changes, policy shifts, phased rollouts, and compliance updates to be aware of.
UKCW London to tackle sector’s most pressing issues
AI and skills development, ecology and the environment, policy and planning and more.
Managing building safety risks
Across an existing residential portfolio; a client's perspective.
ECA support for Gate Safe’s Safe School Gates Campaign.
Core construction skills explained
Preparing for a career in construction.
Retrofitting for resilience with the Leicester Resilience Hub
Community-serving facilities, enhanced as support and essential services for climate-related disruptions.