The Unintentional Extended Warranty in Commercial Construction Contracts

Subcontractors: Is your contract offering an “extended warranty” on your work – for free? 

It might be.

Here’s how to tell. 

Subcontractors typically have to warrant their work against defects for one year after completion 

It’s a bit like a warranty on a new TV or car.

If you’re the ‘sub and part of your work fails inside of that year — and the failure isn’t due to problems caused by somebody else — you have to fix it.  

But the key question is: When does that year start? 

According to the American Institute of Architects A201 General Conditions, it’s one year from the completion of *your own work.* 

Truax Law Group - Construction Attorneys in Avon, OH - The Unintentional Extended Warranty in Commercial Construction Contracts

But plenty of subcontracts drafted by others, however, require a warranty period of one year from the *owner’s acceptance of the Project.*  

Or perhaps the final acceptance of the Project *as a whole.*  

So if your work was performed at the beginning of the Project, this language means your warranty might last two or three years. Or more. 

And unless you can prove that your work was damaged by others, you’ve basically given your customer a free maintenance bond to return to the project and repair your work until the entire project is complete. 

Even to address normal wear and tear. (Unless that’s excluded from the warranty.) 

Now in fairness to our CM and GC friends, often their contract requires them to give the owner a one-year warranty from substantial completion of the Project. As a result, they need subcontractors to stand by their work and repair it until their warranty expires. 

But subcontractors should not accept a blanket warranty — or unknowingly sign up for a long-term maintenance agreement.   

Don’t let your business unknowingly volunteer for an unpaid multi-year maintenance agreement. If you’d like help with your commercial construction contract, fill out our contact us form. Reference this article and you’ll get a complimentary consultation with one of our legal team members. You can also find more related information in our Guide to Avoiding Commercial Construction Contract Nightmares.