46.706
Warranty terms and conditions
Warranties in government contracts must be clearly defined, enforceable, and consistent, specifying contractor obligations, remedies, duration, notification, and marking requirements to protect government interests.
Overview
FAR 46.706 outlines the requirements for drafting and enforcing warranty terms and conditions in government contracts. It provides detailed guidance to contracting officers on how to structure warranties to ensure clarity, enforceability, and protection of government interests. The section covers the scope of warranties, contractor obligations, available remedies, duration, notification requirements, marking of warranted items, and the need for consistency across contract documents.
Key Rules
- Clarity of Warranty Terms
- Warranties must clearly define the item covered, the contractor’s obligations, available remedies, and the warranty’s scope and duration.
- Extent of Contractor Obligations
- Contractor obligations typically cover all defects during the warranty period, except those caused by the government. The scope may be limited based on government-specified designs or extended to design usefulness if not specified.
- Remedies for Breach
- The government must have clear remedies, including repair, replacement, equitable adjustment, or alternate remedies if standard options are impractical.
- Warranty Duration
- The warranty period must be specified, considering the item’s useful life, nature, and trade practices, without extending liability for patent defects unreasonably.
- Notice Requirements
- Contracts must specify a reasonable timeframe for the government to notify the contractor of defects.
- Marking of Warranted Items
- Supplies must be marked or accompanied by notice of warranty, including key details for government personnel.
- Consistency
- All warranty terms must be consistent across the contract and, where possible, consolidated in the warranty clause.
Responsibilities
- Contracting Officers: Ensure warranties are clear, comprehensive, and consistent; specify remedies, duration, notice, and marking requirements; and consider contractor obligations based on contract type.
- Contractors: Comply with all stated warranty obligations, provide required markings, and bear costs for repairs, replacements, and related logistics as specified.
- Agencies: Oversee contract compliance and enforce warranty terms as needed.
Practical Implications
- This section ensures warranties are enforceable and protect government interests by requiring clear, actionable terms. It impacts daily contracting by mandating detailed warranty drafting and administration, reducing ambiguity, and minimizing disputes over defective supplies or services. Common pitfalls include unclear warranty scopes, inconsistent clauses, and inadequate marking or notification procedures.