Document background
The Collateral Warranty Agreement is a fundamental document in Irish construction law, used when third parties need direct contractual rights against contractors, consultants, or subcontractors involved in a construction project. It is particularly important for funders, purchasers, and tenants who require protection but are not party to the main construction contract. The document typically becomes relevant when a project involves significant investment, long-term interests, or complex stakeholder relationships. It includes warranties about workmanship, materials, professional duty of care, and often includes provisions for intellectual property rights, insurance requirements, and step-in rights. Under Irish law, these agreements are essential risk management tools that help bridge the contractual gap between parties who have a material interest in the project's success but no direct contractual relationship with key project participants.
