{"id":887643,"date":"2016-03-15T16:54:16","date_gmt":"2016-03-15T22:54:16","guid":{"rendered":"https:\/\/www.myconstructionexpert.com\/blog\/?p=887643"},"modified":"2016-03-15T16:54:16","modified_gmt":"2016-03-15T22:54:16","slug":"contractors-warranty-for-one-year-correction-period-or-longer","status":"publish","type":"post","link":"https:\/\/www.myconstructionexpert.com\/blog\/contractors-warranty-for-one-year-correction-period-or-longer\/","title":{"rendered":"Contractor\u2019s Warranty – for One Year Correction Period, or Longer?"},"content":{"rendered":"

Stan Martin | Commonsense Construction Law LLC | March 9, 2016<\/p>\n

Standard industry contract forms include warranty<\/a> clauses that have no time limit. Those standard forms also include \u201ccorrection of work\u201d clauses requiring the contractor to address problems that arise in the year after project completion. Does that mean the contractor\u2019s warranty<\/a> is limited to one year, or not? That issue was encapsulated in a dissenting opinion recently penned by a justice of the Michigan Supreme Court:<\/p>\n

In my judgment, contrary to the Court of Appeals’ conclusion, Articles 12 and 21 are not independent provisions, but rather refer to the same subject matter \u2014 “Work” in conformance with the “Contract Documents” \u2014 and consequently must be read together to interpret the contract in its entirety. And when read together, these articles provide that the “Contractor,” . . . expressly warrants that all “Work” will be in conformance with the “Contract Documents” and that all “Work” that is not in conformance with the “Contract Documents” will be corrected within 18 months following the “date of the Final Certificate of Occupancy.” That is, Article 21 imposes an 18-month limitation on the express warranty set forth in Article 12.<\/p>\n

The dissent was issued in\u00a0Spring Harbor Club Condo. Ass’n v. Wright<\/em>, 2016 Mich. LEXIS 270 (Mar. 4, 2016), available\u00a0here<\/a>\u00a0(Lexis subscription required).<\/p>\n

What we can infer from the dissent is that Article 12 in the subject contract was the warranty, and Article 21 was the post-construction remedial work clause. What we can also infer is that the majority of the court concluded that the remedial work clause did not limit the duration of the warranty.<\/p>\n

This remains one of the most misunderstood contract issues in the industry. Many contractors signing a standard industry form believe their warranty is limited to one year. (One year is the correction period in most industry standard forms.) And many owners fail to recognize that the contractor could be liable for a breach of warranty over a period of time that extends to the applicable statute of limitations \u2013 which varies from state to state but in many states is either four or six years.<\/p>\n

The \u201ccorrection of work<\/a>\u201d clause is an owner remedy. For the specified post-construction period \u2013 typically one year \u2013 the owner\u2019s remedy upon discovering a problem is to call the contractor and demand that the contractor fix the problem. Beyond that one-year period…<\/p>\n

To finish reading this article<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Stan Martin | Commonsense Construction Law LLC | March 9, 2016 Standard industry contract forms include warranty clauses that have no time limit. Those standard forms also include \u201ccorrection of work\u201d clauses requiring the contractor to address problems that arise in the year after project completion. Does that mean the contractor\u2019s warranty is limited to… Continue reading Contractor\u2019s Warranty – for One Year Correction Period, or Longer?<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[14,9],"tags":[9132,9131],"class_list":["post-887643","post","type-post","status-publish","format-standard","hentry","category-construction-2","category-construction-contracts","tag-contractors-warranty","tag-correction-of-work","entry"],"jetpack_publicize_connections":[],"yoast_head":"\nContractor\u2019s Warranty - for One Year Correction Period, or Longer? - Advise & Consult, Inc.<\/title>\n<meta name=\"description\" content=\"Standard industry contract forms include warranty clauses that have no time limit. 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