Implied, express, or contractual \u2013 warranties are a critical part of contract law that ALL California contractors need to know to be successful.<\/p>\n
Sure, one can say \u201cI\u2019m a contractor and not a lawyer!\u201d and while that\u2019s true, it\u2019s also essential that you understand the basics of a contract, to make sure you don\u2019t get burned by sketchy subcontractors or ruthless clients \u2013 both of which want to get the most value for the least money.<\/p>\n
With that in mind, let\u2019s take a look at warranties for contractors \u2013 what they are, what they do, and why you need to know them to be successful as a California contractor.<\/p>\n
In California, a warranty is a legally enforceable assurance provided by a contractor to a client regarding the quality, functionality, and durability of the work delivered.<\/p>\n
Warranties in the construction domain serve to uphold professional standards, protect consumer rights, and provide a framework for action and remuneration in case of construction defects or non-compliance with specified standards.<\/p>\n
It serves as a pledge that the delivered project will adhere to the specified standards, and should any issues arise within a stipulated period post-completion, the contractor will rectify them at no additional cost to the client.<\/p>\n
In legal terms, a warranty refers to a guarantee or promise enshrined within a contract, under which the contractor assures the quality, performance, or condition of a particular subject matter to the client. Warranties also stipulate the consequences of construction defects, legally outlining what a contractor must do in the case of a construction defect.<\/p>\n
Warranties, at their very basic level, are legal protections that protect both the contractor and the client by outlining all of the responsibilities of both parties \u2013 and the consequences for violating the terms both parties agreed upon.<\/p>\n
Warranties in California cover a spectrum of durations and construction aspects, and they can vary from industry to industry and home to home. Here\u2019s some of the main ones you\u2019ll come across in your career as a California contractor.<\/p>\n
General Warranties<\/strong><\/p>\n Notable Court Cases Involving Warranties<\/p>\n When it comes to contractor contracts, looking to existing court cases is a good way to learn about the system, so you can prepare yourself for even the worst-case scenario.<\/p>\n 1. Moore v. Teed<\/strong><\/p>\n Moore v. Teed<\/a> was an interesting case about contractual fraud and construction defects, with a big emphasis on the legal application of Business and Professions Code \u00a77160<\/a>. In the case, a homeowner was suing a contractor for damages because the contractor severely overpromised\u2026 and underdelivered to the tune of $300,000.<\/p>\n This ruling gives homeowners more leverage over contractors who promise the world and don\u2019t deliver. In the case, the court ruled that homeowners are entitled to the \u201cimage that the contractor promised\u201d when selling their services. In other words, a contractor is liable for the promise of the project made by the contractor and is due damages equal to the promise made to the client \u2013 whether it\u2019s in writing or not.<\/p>\n 2. Howard Contracting, Inc. v. G.A. Macdonald Construction Co., Inc.<\/strong><\/p>\n This landmark case made it to the California Supreme Court and set a precedent that allows subcontractors to recover damages for cost overruns caused by delays and disruptions \u2013 even if there\u2019s stipulations in the prime contract barring such claims.<\/p>\n The civil ruling changed things for both subcontractors and contractors in California by giving subcontractors the option to sue for \u2013 and receive \u2013 damages for any out-of-pocket costs or expense overruns caused by delays. The key thing is that even if the prime contract states the prime contractor isn\u2019t liable for damages, they are still liable for damages.<\/p>\n 3. Aas v. Superior Court Of California<\/strong><\/p>\n In this massive 2000 ruling, the California Supreme Court delineated the boundaries of negligence claims in construction defects scenarios. The court ruled that homeowners could not recover damages for construction defects that hadn’t caused property damage. It seems obvious, but before then, there was no legal precedent protecting contractors against<\/p>\n This ruling set a significant precedent<\/a> on the scope of liability for contractors and developers, finally establishing precedent that homeowners can\u2019t sue contractors for damages related to construction defects\u2026. without actually suffering damages related to construction defects.<\/p>\n It\u2019s wild that we even have to type that\u2026but here we are. Thanks to this court ruling, contractors and the state of California must have saved millions in legal fees from baseless lawsuits.<\/p>\n As you can see from these court cases, it\u2019s critical for any contractor to know what\u2019s in their contracts \u2013 and what\u2019s excluded from them. Any contractor who is too lazy to learn at least the basics of contract law is a contractor who will find themselves in trouble at some point down the road.<\/p>\n We hope this guide serves as a good jumping-off point for your contracting business \u2013 now\u2019s the time for you to dig deeper into your own personal situation to make sure you\u2019re covering all your bases and setting yourself up for success as a California contractor.<\/p>\n California State Licensing Board<\/a> Implied, express, or contractual \u2013 warranties are a critical part of contract law that ALL California contractors need to know to be successful. Sure, one can say \u201cI\u2019m a contractor and not a lawyer!\u201d and while that\u2019s true, it\u2019s also essential that you understand the basics of a contract, to make sure you don\u2019t get … Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":2660,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[221,220,71],"tags":[],"class_list":["post-2659","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-construction","category-contractor-business","category-cslb-news"],"_links":{"self":[{"href":"https:\/\/contractorslicensingschools.com\/blog\/wp-json\/wp\/v2\/posts\/2659","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/contractorslicensingschools.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/contractorslicensingschools.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/contractorslicensingschools.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/contractorslicensingschools.com\/blog\/wp-json\/wp\/v2\/comments?post=2659"}],"version-history":[{"count":0,"href":"https:\/\/contractorslicensingschools.com\/blog\/wp-json\/wp\/v2\/posts\/2659\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/contractorslicensingschools.com\/blog\/wp-json\/wp\/v2\/media\/2660"}],"wp:attachment":[{"href":"https:\/\/contractorslicensingschools.com\/blog\/wp-json\/wp\/v2\/media?parent=2659"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/contractorslicensingschools.com\/blog\/wp-json\/wp\/v2\/categories?post=2659"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/contractorslicensingschools.com\/blog\/wp-json\/wp\/v2\/tags?post=2659"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}\n
California Contractors: Get To Know Your Contracts!<\/h3>\n
Additional Reading<\/h3>\n
\nLevelset – Warranty requirements for contractors in California\u200b<\/a>
\nEsquire REB – New Construction Warranties Provided By California Law\u200b<\/a>
\nValley Contractors Exchange – New Construction Warranties<\/a>
\nStone Sallus – Construction Defect Claims in California: Understanding Your Options\u200b<\/a>
\nFreeAdvice – California Contractor Warranty Form<\/a>
\nSmith Currie – New California Construction Laws for 2023<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"