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Understanding warranties in a construction contract

On Behalf of | Oct 5, 2023 | Construction Litigation

Construction companies in Maryland strive to provide their customers with quality work that satisfies the terms of the contract. When a building is being constructed, there are certain requirements that must be met. For example, the contract will detail the size of the home, how it is designed, that it meets the state building codes and more. To protect both the contractor and the property owner, it is important to understand what express and implied warranties are.

The contract is key with a construction project

When a contract is agreed upon, it automatically triggers an express warranty that the result will meet the stipulations in the contract. This means that the blueprint, the drawings and the description must be completed as agreed to.

In addition, a residential project has an implied warranty. This means that the materials the contractors used will be up to industry standard, the structure will be completed professionally and safe to live in. When this requirement is not met, the contractor could face a legal case.

These warranties are in effect for a full year after the purchaser has taken possession of the property or received the deed, whichever comes first. In some instances, people decide not to have the express or implied warranty in their construction agreement. This could be a mistake if there are any problems, so it is wise to know the potential consequences from doing so.

Contractors should be protected just like consumers

When there is an issue with a home construction, it is frequently viewed from the perspective of the property owner. That could be due to a construction defect, faulty materials or the project simply not coming out as the owner envisioned.

The construction company also has rights. There is no guarantee that a person’s claim that the property was not completed as the contract states is accurate. When there is the potential for construction litigation based on disagreements over the express or implied warranty, the company must know how it can be protected from the negative implications that stem from accusations of violating the agreement.