Reputable construction companies strive to provide the best customer service possible, and one of the ways this is accomplished is through home warranties. Warranties typically cover defects in construction and workmanship on construction projects and give customers specific legal rights in terms of how the project turns out. Some states may even require contractors to provide warranties on the structures they build. Here are three potential warranty problems for contractors:
- You have to decide who covers the warranty: In some cases, a construction company may decide to cover the warranty itself. In others, the company may determine that it is a better idea to purchase a warranty from an independent company or insurer. The decision can involve factors such as your available resources, confidence in your services, the terms and conditions of the original construction contract, and the scope of the warranty. Consult with your financial or legal professional for advice on how to proceed with warranty offers; and ensure that any and all agreements are in writing and are agreed to, with signatures, by your company and the customer.
- Warranty repairs and corrections can be costly: Repairing, renovating, or revising a construction project can be costly for you. Even if some of the repairs are financially covered through insurance, bonds, or conditions of the warranty, you can lose money if you have to divert labor and materials to fixing the warranty issue.
- Warranty issues can become legal troubles: Warranties should be very specific in what they cover, but the unfortunate fact is that even this does not make you immune from legal action. Dissatisfied or spiteful customers could still make legal trouble for you over a warranty, especially if you refuse to cover something that was not in the warranty but which they think you should fix.
Construction Monitor helps owners and managers in the construction industry stay informed on the latest developments that will affect their business operations and their profits. Contact us today for more information on warranty problems for contractors and on how contractors can prevent potential warranty problems while still providing outstanding customer service.