We are regularly consulted when there is a dispute regarding a building contract. In order to advise the client, we ask to see the signed contract, only to find that the contract was never actually executed (signed) by both parties. Sometimes there is a letter confirming acceptance of a tender, but the actual contract terms have never been signed. Clearly this presents problems determining exactly what obligations there were on the contractor and the manner in which these were breached, leading to disputes. How important
What are collateral warranties?
Collateral warranties are contracts which are designed to establish a contractual link between a third party (the beneficiary) and a contractor or consultant who has carried out certain works.
Why are they required?
In the case of a building contract, collateral warranties are a promise from the contractor to the beneficiary that the works have been carried out in accordance with the building contract. If the works have been carried out negligently, the beneficiary has a right of recourse against the