Technical Article
A warranty is a written promise that a product or service will remain free from defects for a specified period.
Let's dig into the different types.
Product warranty
This is normally issued by the product manufacturer to cover for product defects or failure, and issues replacement product free of charge to repairs due to a failure or defect. Check for level of cover – the T&C’s will stipulate the maximum level of liability of the manufacturer.
Workmanship warranty
This is issued by the installing contractor and issues labour free-of-charge for repairs due to defective workmanship. Check for level of cover – the T&C’s will stipulate the maximum level of liability of the contractor.
Single Point warranty
This is generally the preferred option as it gives the client a “single point of contact” in the event of an issue and is generally provided by the product manufacturer. The responsibilities of the manufacturer and contractor remain the same as standard product warranties and workmanship warranties.
Single Point warranties help to reduce the likelihood of finger-pointing between manufacturer and contractor.
Insurance backed guarantee (IBG)
It is important to make clear to the building owner or tenant that an IBG only comes into play when either or both the product manufacturer or installing contractor cease to trade. An IBG is not a blanket insurance policy that picks up the complete cost in the event of an issue. It simply provides an insurance backing to the manufacturers or contractors warranty that can be relied upon if one of the parties has ceased to trade, and because of this, some building owners see IBG’s as an expensive luxury that may never be able to be used. Currently there are insurance policies for 10 years available and the cost is typically 2-4% of the contract value.
Latent defect insurance
A latent defect insurance policy provides the most complete level of cover for the client. It covers the entire contract value – labour, materials, access, waste removal, etc – and generally appreciates by around 2% each year. It will provide protection against both product and workmanship issues regardless of the trading staus of the manufacturer or the roofing contractor. Currently there are insurance policies for 10 years available and costs for this policy are generally in the region of 4-6% of the contract value.
SUMMARY
Most warranties place responsibility on the building owner or tenant to carry out regular maintenance and record such, and it is important that clients are made aware of their own responsibilities under such a warranty. Additionally, most warranties include exclusion clauses that disallow unauthorised repairs or modifications to the roof or gutter waterproofing.