🔧 Warranty Administration
Your warranty obligations don't end at project closeout. Managing warranties properly protects your reputation and limits your exposure.
Key Principle
A warranty call handled well can become a referral. A warranty call handled poorly becomes a lawsuit.
Understanding Warranties
Types of Construction Warranties
Express Warranties
- Stated in the contract
- Typically 1 year for general work
- Longer for specific items (roofing, HVAC, etc.)
- Your specific promises about quality
Implied Warranties
- Not written but legally implied
- Workmanship will meet industry standards
- Materials will be fit for purpose
- Varies by state law
Manufacturer Warranties
- Provided by product manufacturers
- May be longer than your warranty
- You facilitate but don't provide
- Collect and organize at closeout
Typical Warranty Periods
| Item | Typical Period |
|---|---|
| General construction | 1 year |
| Roofing systems | 10-20 years |
| HVAC equipment | 5-10 years |
| Waterproofing | 5-10 years |
| Windows | 5-10 years |
| Paint | 1-2 years |
| Appliances | 1-5 years |
| Structural | 10 years+ |
Setting Up Warranty Tracking
Warranty Log
Track for each warranty:
- Item/system description
- Manufacturer
- Warranty period
- Start date
- Expiration date
- Documentation location
- Contact information
- Special conditions
Example Warranty Log
| Item | Manufacturer | Start | Expires | Contact | Doc Location |
|---|---|---|---|---|---|
| Roofing | ABC Roofing | 1/1/25 | 1/1/45 | 800-555-0100 | Binder 1, Tab 3 |
| HVAC Units | Carrier | 1/1/25 | 1/1/30 | 800-555-0200 | Binder 1, Tab 5 |
| Elevator | Otis | 1/1/25 | 1/1/26 | 800-555-0300 | Binder 2, Tab 1 |
Warranty Documentation Package
Collect at closeout:
- All manufacturer warranties
- Maintenance requirements
- Equipment manuals
- Contact information
- Registration documents
- Inspection requirements
Organize clearly:
- By system or trade
- Include start/end dates
- Maintenance requirements highlighted
- Emergency contacts visible
Handling Warranty Claims
When a Claim Comes In
Immediate response:
- Acknowledge receipt within 24 hours
- Get details: what, when, where, how discovered
- Schedule site visit
- Review warranty terms
- Assign to responsible party
Evaluating Claims
Is it a valid warranty claim?
- Within warranty period?
- Covered by warranty terms?
- Result of defective work/material?
- Not caused by owner misuse?
- Not normal wear and tear?
Common exclusions:
- Improper maintenance
- Unauthorized modifications
- Owner-caused damage
- Normal wear and tear
- Acts of God
Responding to Claims
If covered:
- Schedule repair promptly
- Coordinate with owner
- Complete repair
- Document completion
- Follow up with owner
If not covered:
- Explain why (professionally)
- Reference warranty terms
- Offer to quote repair
- Document your response
Response Timeline
| Priority | Issue Type | Initial Response | Resolution |
|---|---|---|---|
| Emergency | Active leak, safety | Same day | 24-48 hours |
| Urgent | System not functioning | 24 hours | 1 week |
| Standard | Cosmetic, non-urgent | 48 hours | 2-4 weeks |
Subcontractor Warranties
Flow-Down Requirements
Your subcontracts should include:
- Same warranty period as prime contract
- Same warranty terms
- Obligation to respond to warranty calls
- Back-to-back coverage
When Sub is Responsible
Your process:
- Determine responsible sub
- Forward claim to sub
- Monitor response
- Step in if sub fails to respond
- Backcharge if necessary
If sub is out of business:
- You may still be responsible
- Check bonding and insurance
- May need to hire another contractor
- Document all costs for potential recovery
Common Warranty Issues
"It's Not a Defect"
Owner says: Paint is fading Reality: Normal weathering Response: Explain expected performance, offer maintenance advice
Owner says: Floors are squeaking Reality: Normal wood movement Response: Explain that some movement is normal, offer to check for actual defects
"You Didn't Fix It Right"
If callback on same issue:
- Don't charge for second visit
- Determine root cause
- Fix properly this time
- Document extensively
- Consider extended warranty on that item
"It's Been Like This Since Day One"
If claimed defect is old:
- Review punchlist—was it noted?
- Check daily reports
- Review closeout photos
- Determine if legitimately missed
- Fix if valid; explain if not
"Your Sub Won't Respond"
When sub is slow:
- Document your attempts
- Send formal written demand
- Fix yourself if urgent
- Backcharge sub for costs
- Note for future prequalification
Warranty Walkthrough
Pre-Expiration Walkthrough
Conduct 10-11 months after completion:
- Schedule with owner
- Walk all areas
- Document any issues found
- Repair legitimate defects
- Get sign-off before expiration
Benefits:
- Catch issues before warranty expires
- Good customer service
- Clean end to warranty period
- Prevents post-expiration disputes
Walkthrough Checklist
Exterior:
- Roofing: No leaks, drainage working
- Walls: No cracks, paint intact
- Windows: Operating properly, no leaks
- Doors: Operating properly, hardware working
- Site: Drainage working, pavement intact
Interior:
- Finishes: Paint, flooring, ceilings
- Doors/hardware: Operating properly
- Plumbing: No leaks, fixtures working
- Electrical: All working
- HVAC: Operating, balanced
Systems:
- HVAC: Filters changed, operating
- Plumbing: No leaks, water heater
- Electrical: Panels, outlets, switches
- Fire/life safety: Tested, operational
Warranty Cost Tracking
Why Track Warranty Costs?
- Identify problem subs
- Identify problem products
- Improve estimating
- Quality improvement
- Insurance purposes
What to Track
Per callback:
- Project
- Issue description
- Root cause
- Responsible party (self, sub, manufacturer)
- Cost to repair
- Time spent
Analyze:
- Callbacks per project
- Cost per project
- Most common issues
- Problem subcontractors
Best Practices
During Construction
- Quality control prevents warranty calls
- Document all work thoroughly
- Take completion photos
- Collect all warranties
- Train owner on maintenance
At Closeout
- Organize warranty package
- Conduct thorough walkthrough
- Complete all punchlist items
- Get sign-off on completion
- Schedule 11-month walkthrough
During Warranty Period
- Respond promptly to all calls
- Document everything
- Be fair but firm on coverage
- Maintain good relationships
- Track and analyze costs
At Warranty End
- Conduct final walkthrough
- Complete any legitimate items
- Get warranty release if possible
- Archive documentation
- Update estimating data