Collateral warranties: beware
By Jonathan Pawlowski
Is your company a party to a construction contract or to a collateral warranty? You might think this is obvious; after all, your company’s contract manager is familiar with both types of document and knows the difference. However, what would happen if a collateral warranty was suddenly interpreted as a construction contract? How would it affect your company, which is in the business of designing, manufacturing and installing pumps where the pumps form an integral part of a building or plant?
In Parkwood Leisure Ltd v Laing O’Rourke Wales and West Ltd (2013), the judge held that the parties’ collateral warranty was actually a construction contract within the meaning of the Housing Grants, Construction and Regeneration Act 1996.
Prior to the completion of the works and the commencement of Parkwood’s sub-lease, Laing O’Rourke executed a collateral warranty for the benefit of Parkwood stating, among other things, that ‘the contractor warrants, acknowledges and undertakes that it has carried out and shall carry out and complete the works in accordance with the contract’. Parkwood then took possession of the centre and opened it to the public…
Click on the link below to read the rest of the Collyer Bristow briefing.
Sign in or Register to continue reading this article
It's quick, easy and free!
It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.Register now
Why register to The Lawyer
In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.
Identify the major players and business opportunities within a particular region through our series of free, special reports.
Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.
More relevant to you
To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.
News from Collyer Bristow
News from The Lawyer
Briefings from Collyer Bristow
FCA swaps review: has the independent reviewer fulfilled its function to ensure a fair and reasonable outcome?
Holmcroft Properties’ case was included in the review process which the FCA agreed with Barclays (and other banks) the banks should undertake to provide redress to customers who had been missold IRHP.
Once damaging personal information is in the public domain, it is hard to regain control of it.