Cian BrennanFounder, Quantum Contract Solutions · Founder

Why you shouldn't sign a standard construction contract

Name: Why you shouldn't sign a standard construction contract
Uploaded: 2022-09-19T23:00:05+00:00
Duration: 48 s
Channel: Cian Brennan
Description: A contractor got trapped in an endless cycle of liability when cracks in concrete plinths triggered a new 12-month warranty period after each repair…

19 Sept 2022 · 1 min

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0:48

A contractor got trapped in an endless cycle of liability when cracks in concrete plinths triggered a new 12-month warranty period after each repair. Standard construction contracts with unlimited re-warranty clauses can leave you perpetually liable. Cap total extensions to 18-24 months or eliminate re-warranty periods entirely.

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If you have a re-warranty period that is unlimited, right, what can happen is what happened to this client is in month 11 of the 12-month defects liability period, cracks started to form in the concrete plinths, making them a little bit unstable, and then they had to come out and repair it. So they came out and repaired it, and based on what the contract said, that added another 12 months to the defects liability period. Guess what happened? All of the other things started cracking as well. That kept happening, and they kept having to come back, and they're completely liable for all of that stuff going forward. So what they've had to do. What you guys need to do is going to make sure that there's no re-warranty periods, right? Full stop. It's 12 months, end of story. There's no re-warranty period. Or if they're insisting on a re-warranty period, it's capped again as an aggregate of, say, you know, 18 to 24 months.