Which warranty do you have on your home construction job?

Posted by iLawyer on Jun 11th, 2019 Construction Litigation, Firm News

Everyone enjoys peace of mind and that’s why warranties are so popular. Everything from the car in your garage or the blender in your cupboard came with a warranty. You like knowing that you’re protected against defective products in the early stages of your ownership.

Many construction companies and contractors also offer warranties on their work. It’s a way of standing behind the work they perform on your home. There are two types of warranties that Texas recognizes when it comes to construction law

Express warranties

You may have an express warranty written into your construction contract to cover the services performed and the goods used to complete the job. Third-party companies will also sell you an express warranty. These warranties offer protection against defects or breakdowns for a specific time.

Implied warranty

In construction law, there are two types of implied warranties. The first being implied warranty of good and workmanlike performance in service contracts and the second being implied warranty of good and workmanlike performance and habitability in the sale of a home.

An implied warranty for service contracts provide assurance of the quality and professionalism of the work.

The implied warranty for performance and habitability of a home warranties the livability of the home you are buying or selling. Sometimes you can waive the performance component of this warranty but not the habitability portion. This places liability on the developer or contractor rather than the owner of the property. If you discover a defect, the onus is then on the owner to prove three things. Those things are:

  1. The presence of a defect.
  2. Damages resulted from that defect.
  3. That the developer or contractor caused the defect.

Warranties serve many purposes

You take on a big risk when you remodel or purchase a new home. Warranties are a way to protect buyers like you by holding construction contractors accountable for the work that they perform. Think of a warranty like your health insurance: you hope that you never have to use it but are glad it’s there when you do need it.