Risk in Construction Sub-Contracts

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Warranty clauses in sub-contracts

A Standard Sub-Contract Example of an Australian Warranty Clause

1. The Subcontractor warrants that all work performed, and all materials supplied by the Subcontractor as part of the Subcontract Works and / or Particular Subcontract Work or Products:

  • comply in all respects with the requirements of the Subcontract;
  • without reducing or limiting any higher standard or specification or requirement of the Subcontract comply with the applicable industry standards, including (without limitation) the Building Code of Australia and any applicable Australian Standard; and
  • are fit for the purposes of which they are required.

2. The Subcontractor warrants that it used reasonable skill and care in performing all work associated with the Subcontract Work and / or Particular Subcontract Work or Products.

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An Example Sub-Contractor Warranty Exclusion Clause

1. The Subcontractor warrants that all work performed, and all materials supplied by the Subcontractor as part of the Subcontract Works and / or Particular Subcontract Work or Products:

  • comply in all respects with the requirements of the Subcontract;
  • the Subcontractor does not certify compliance of any documentation including but not limited to the specifications, schedules, amendments, architectural or structural drawings provided in relation to the BCA or any other applicable Australian Standards; however
  • the Subcontractor does certify the works are compliant with documentation provided by the client/builder, but with the exclusion of any tender qualifications referred to in any tender offer.

2. The Subcontractor warrants that it used reasonable skill and care in performing all work associated with the Subcontract Work and / or Particular Subcontract Work or Products.

Alternatively: “PRICE THE RISK”

To confirm compliance of design elements, we strongly recommend you seek qualified professional advice.

An example would be to engage an architect to certify compliance, who in Australia charge approximately $100 to $250 per hour + GST

Attention

This material has been prepared for the general information of MCA members. Its is not intended to take the place of professional advice and readers should not take action on specific issues in reliance upon any matter of information contained in it.

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