ACA Updates Public Policy on Warranties
ACA periodically updates its Public Policies to reflect current industry practice. ACA’s Contracts Committee recommended a change to the existing Public Policy on Warranties. In particular, the question was asked about the existing wording which spoke to the recognized warranty being 12 months after take-over of the project. The question was:
“I understand this, but the industry is changing. Why not offer a longer warranty if that is what the owner\client wants and if we have the opportunity to add it to the extra warranty price of the bid before close and all bidders understand what is required.”
In its meeting of January 27, 2017, the Board agreed to amend the existing Public Policies on Warranties to reflect this change. The new Policy now reads as follows with the addition in red font:
The recognized warranty provided by a general contractor in the construction industry is 12 months after take-over of the project. Any extended warranties should be handed over to the owner at the same time. Warranties for material and labour should not exceed these limits because those providing the warranties have no control over the end use and maintenance of the project by the owner. Any extended warranties required beyond the one year warranty period shall be as specified in the tender documents prior to bidding.