Guarantees are used as proof of a primary contract when an agreement is to be reached with a third party outside the primary contract. Sometimes an architect, contractor or subcontractor must assure a funder, tenant or buyer that they have fulfilled their obligations under a construction contract. If you are a contractor who checks a warranty guarantee deed, the key is to check if the conditions of the deed increase your risk profile on the project. Two first questions are: in the case of a construction or engineering project, an ancillary warranty is a contract under which a professional advisor (for example). B an architect), a contractor or a subcontractor to a third party (for example. B a funder) guarantees compliance with its technical contract, construction contract or subcontracting. (See practical note, warranty guarantees for construction projects. These clauses are intended to require you to pay compensation to your client for any losses, claims, damages, expenses and expenses incurred by a breach of the contract or obligation on your part when providing your services. These clauses extend the scope of what your client can restore from you – they go beyond what can normally be restored to the common law.
The risk of not having a guarantee of guarantee lies above all in the need to use the existing contractual relationships – the main contract and the subcontractors. Guarantees should be considered part of a project`s security package – if the main contract and supply chain continue to work, then there is no reason for them to be considered “necessary” – perhaps “desirable” is a better description. Similarly, your policy does not cover you for the contractual responsibilities that arise from you from an explicit guarantee regarding compliance with a specification, or that the duration of a project or project budget is reached as part of your agreement – these clauses should not be accepted either. By signing such an agreement, you are exposing yourself to a wider range of debts than those inherent in the main agreement, thereby increasing your risk. A typical example would be the fact that an architect of a new office development owes a duty of care to a construction occupant, as these are subsequent defects.
