Sub-Contractor Collateral Warranty (To Funder)
Publisher one
Genie AIJurisdiction
England and WalesRelevant sectors
Type of legal document
🏠 Collateral warrantyBusiness activity
Draft collateral warrantyA collateral warranty is a separate agreement between the contractor and the employer that sets out additional terms and conditions relating to the works. The collateral warranty will often contain provisions relating to the quality of the works, the performance of the contractor, the liability of the contractor, and the indemnity of the employer. The collateral warranty will also contain a clause specifying that the agreement is collateral to the main contract and that it will remain in force even if the main contract is terminated.
This warranty helps to protect the funder's interests by ensuring that they have a direct legal recourse against the sub-contractor in case of any breach of contract or failure to meet the agreed-upon standards. It also provides an additional layer of security for the funder, who may not have direct control over the sub-contractor's contractual obligations.
This legal document clarifies the rights and responsibilities of the sub-contractor, funder, and main contractor, as well as the conditions under which the warranty may be invoked. It may cover various aspects such as the scope of work, quality standards, delivery timelines, payment terms, indemnification clauses, and dispute resolution procedures.
By having a Sub-Contractor Collateral Warranty (To Funder) under UK law in place, all parties involved can have increased confidence and assurance in the successful delivery of the construction project. It provides the funder with added protection and peace of mind, ensuring that they have a legal remedy in the event of any issues arising from the sub-contractor's performance or non-compliance with the main contract.
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