Professional Consultant's Collateral Warranty (Funder, Buyer Or Tenant Friendly)
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Genie AISource file
professional_consultant's_collateral_warranty_(funder,_buyer_or_tenant_friendly)_template.docxJurisdiction
England and WalesCost
Free to useRelevant sectors
Type of legal document
🏠 Collateral warrantyBusiness activity
Provide 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.
In this context, the template is designed to outline the terms and conditions through which a professional consultant (such as an architect, engineer, surveyor, or other relevant consultants) agrees to provide direct warranties to funders, buyers, or tenants of a particular project or development. These third-party stakeholders typically require these warranties to ensure their interests are protected and to have a direct contractual relationship with the consultant.
The template could cover a range of aspects, including the scope of services provided by the consultant, the standard and quality of work expected, adherence to relevant regulations or building codes, and the liability of the consultant for any breaches or defects. It may also address matters related to intellectual property rights, insurance coverage, confidentiality, and dispute resolution mechanisms.
The "funder, buyer, or tenant-friendly" element suggests that the template places a particular emphasis on protecting the interests of these parties. This could include provisions that hold the consultant directly accountable for any issues arising during or after the completion of a project. It may also confer specific rights, remedies, or benefits to the funder, buyer, or tenant, such as the ability to enforce the warranty directly against the consultant without the need for costly litigation.
Overall, this legal template serves as a comprehensive framework for establishing a collateral warranty arrangement between a professional consultant and third-party stakeholders in the context of a construction or consultancy project in the UK, with a clear emphasis on ensuring the interests of funders, buyers, or tenants are adequately considered and protected.
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