Do Your Builder Contracts Tell the Same Story?
Do Your Builder Contracts Tell the Same Story?
Your sales contract, warranty, subcontractor agreements and insurance coverage may have been created at different times by different people.
But when a homeowner complaint or construction issue arises, all four can come into play.
Here is where to look for potential gaps.
1. Your Sales Contract
The sales contract establishes the relationship between you and the buyer. It should clearly address homeowner responsibilities, dispute procedures and how the written warranty applies after closing.
2. Your Written Warranty
A written warranty defines applicable coverage, performance standards, exclusions and the process for submitting and resolving warranty requests.
Make sure its terms do not conflict with promises made in your sales contract or marketing materials.
3. Your Subcontractor Agreements
Your agreements with subcontractors should clearly explain insurance requirements, responsibility for completed work and what happens when a repair is needed.
If your warranty requires you to respond to an issue, your subcontractor agreements should support your ability to do so.
4. Your Insurance Coverage
General Liability insurance and a written warranty serve different purposes. Review your coverage with a construction insurance professional so you understand what may be covered, what may be excluded and where the builder remains responsible.
Review Before You Need It
A homeowner complaint is not the ideal time to discover that your documents conflict.
Periodically review your sales contract, warranty, subcontractor agreements and insurance coverage together with your legal and risk advisors. The goal is simple: make sure every part of your protection works together.
Maverick helps home builders understand how insurance and warranty fit into their larger risk strategy.
Know your documents. Find the gaps. Protect your business.
This article is for general educational purposes and does not constitute legal advice. Builders should consult qualified legal counsel regarding their contracts and specific legal obligations.