Warranty of Construction
Contractors on fixed-price construction contracts must warrant their work for one year, remedy defects at their own expense, and secure enforceable warranties from subcontractors and suppliers for the Government’s benefit.
Overview
FAR 52.246-21, Warranty of Construction, establishes the contractor’s obligation to warrant that all work performed under a fixed-price construction contract conforms to contract requirements and is free from defects in equipment, material, design, or workmanship. The standard warranty period is one year from final acceptance (or from Government possession if earlier). Contractors must remedy, at their own expense, any nonconformance or defect and any resulting damage to Government property. The clause also requires contractors to obtain, execute, and enforce warranties from subcontractors and suppliers for the Government’s benefit, if directed. If the contractor fails to remedy defects in a reasonable time, the Government may do so at the contractor’s expense. The clause includes exceptions for defects caused by Government-furnished materials or designs and does not limit the Government’s rights regarding latent defects, gross mistakes, or fraud. Alternate I addresses equipment specified by brand name and model, shifting warranty responsibility to the manufacturer or supplier.
Key Rules
- Warranty Period and Scope
- Contractors must warrant work for one year after final acceptance or Government possession, covering defects in materials, equipment, design, or workmanship.
- Remedy and Restoration
- Contractors must fix defects and restore damaged work or property at their own expense, with a new one-year warranty on repairs.
- Subcontractor and Supplier Warranties
- Contractors must secure and, if directed, enforce warranties from subcontractors and suppliers for the Government’s benefit.
- Government Remedies
- If the contractor fails to act, the Government may remedy defects at the contractor’s expense.
- Exclusions and Limitations
- Contractors are not liable for defects in Government-furnished materials or design unless caused by their negligence; the clause does not limit rights regarding latent defects, gross mistakes, or fraud.
Responsibilities
- Contracting Officers: Insert the clause in applicable contracts, notify contractors of defects, and direct enforcement of warranties as needed.
- Contractors: Provide a one-year warranty, remedy defects and damages, obtain and enforce subcontractor/supplier warranties, and comply with notification and repair obligations.
- Agencies: Oversee compliance and ensure proper clause application and enforcement.
Practical Implications
- Ensures construction quality and protects the Government from defective work.
- Contractors must have robust quality control and warranty management processes.
- Failure to comply can result in significant financial liability and reputational harm.