Construction Warranty Requirements: Complete Contractor Guide 2025

Introduction

Construction warranties obligate contractors to repair or replace defective work after project completion. Understanding warranty requirements protects both contractors and owners and helps you manage post-construction obligations effectively.

This guide covers warranty types, periods, contractor obligations, and best practices for warranty management.

Construction Warranty Basics

General Warranty: Typically 1 year from substantial completion
Extended Warranties: Specific items may have longer periods
Manufacturer Warranties: Pass through to owner
Scope: Defects in materials and workmanship

Types of Warranties

Construction contracts typically include multiple warranty types.

General Construction Warranty

The contractor's warranty that work is free from defects:

Covers workmanship and materials
Typically 1 year from substantial completion
Contractor must correct defects at no cost
Applies to all contract work

Special/Extended Warranties

Longer warranties for specific systems or components:

Roofing systems (often 10-20 years)
Waterproofing (5-10 years)
HVAC equipment (varies)
Windows and curtain wall

Manufacturer Warranties

Provided by equipment/material manufacturers
Passed through to owner
May require registered installation
Terms vary by product

Comparison

Type	Period	Provider
General	1 year	Contractor
Roofing	10-20 years	Manufacturer + Contractor
Equipment	Varies	Manufacturer

Warranty Periods

Understanding when warranties begin and end is important for managing obligations.

Start Date

Warranty periods typically begin at:

Substantial completion
Final acceptance
Beneficial occupancy
Date specified in contract

Check contract language—the specific trigger matters.

Federal Contract Periods

General warranty: 1 year typical
Equipment warranties per specifications
May require warranty beyond substantial completion
FAR 52.246-21 addresses warranties

Partial Occupancy

When owner takes partial occupancy before substantial completion:

Warranty may start for occupied areas
Document what areas are occupied when
Clarify in writing with owner
Track multiple warranty start dates

Contractor Obligations

Warranties create ongoing obligations after project completion.

Defect Correction

Respond to warranty claims promptly
Investigate reported defects
Correct defects at no cost to owner
Complete corrections within reasonable time

What's Covered

Defective materials
Poor workmanship
Work not meeting specifications
Latent defects appearing during warranty

What's Not Covered

Normal wear and tear
Damage from owner misuse
Improper maintenance by owner
Damage from third parties
Acts of God/force majeure

Subcontractor Warranties

Ensure subcontracts include warranty obligations
Warranty period should match or exceed prime contract
Obtain assignable manufacturer warranties
Maintain subcontractor contact information

Managing Warranty Claims

Effective warranty claim management protects your reputation and limits costs.

Claim Response Process

Receive and log claim
Investigate promptly
Determine if covered under warranty
Schedule correction if covered
Document resolution

Investigation Tips

Inspect before making commitment
Photograph existing conditions
Determine root cause
Identify responsible party (if subcontracted)
Document findings

When to Push Back

Damage from owner misuse or neglect
Inadequate maintenance
Claims outside warranty period
Issues not related to your work

Warranty Bonds

Some contracts require warranty or maintenance bonds beyond project completion.

When Required

Specified in contract
Common for roofing and waterproofing
May be required for equipment installations
Federal contracts may specify

Bond Terms

Typically 1-2 years (matching warranty)
Penal sum matches warranty exposure
Separate premium from performance/payment bonds
May be standalone or reduction of original bond

Cost Considerations

Include warranty bond costs in your bid. Premiums typically range from 0.5% to 1.5% of covered amount per year.

Best Practices

Proactive warranty management reduces problems and costs.

Before Project Completion

Complete punch list thoroughly
Document as-built conditions
Collect all manufacturer warranties
Provide O&M manuals and training
Conduct thorough final inspections

At Substantial Completion

Document warranty start date
Provide warranty information to owner
Set up warranty tracking system
Brief owner on maintenance requirements

During Warranty Period

Respond promptly to claims
Maintain contact with subcontractors
Track and document all warranty work
Schedule warranty walk-through before expiration

At Warranty Expiration

Conduct final walk-through
Address any outstanding items
Obtain written release if possible
Archive project files appropriately

Frequently Asked Questions

Does warranty work affect retainage?

Warranty obligations are generally separate from retainage. However, retainage may be withheld if defects exist at final completion. Warranty claims during the warranty period typically don't affect previously released retainage.

Can the warranty period be extended?

Contracts sometimes extend warranty for corrected work or areas not available for inspection. Warranty may also extend if contractor fails to correct defects timely. Review contract language carefully.

Who pays for warranty work access?

Contractor typically covers costs to access and correct defective work, including any removal and restoration necessary. This is part of the warranty obligation.

What about defects discovered after warranty expires?

Warranties limit the correction period but don't eliminate liability for latent defects or negligence. Statutes of repose (varying by state) ultimately limit exposure, typically 6-10 years.

Conclusion

Construction warranties are a normal part of contracting. Manage them proactively through quality construction, thorough documentation, and responsive claim handling. Good warranty management protects your reputation and builds client relationships.

Find Construction Opportunities

ConstructionBids.ai helps you find government construction opportunities. Understanding warranty obligations is part of successful project delivery.

Start Finding Opportunities →