Construction Warranty Agreement for Canada

Construction Warranty Agreement Template for Canada

A Construction Warranty Agreement under Canadian law is a legally binding document that outlines the terms and conditions under which a contractor or builder guarantees the quality and performance of their construction work. This document, governed by both federal and provincial legislation including the National Building Code of Canada and provincial consumer protection laws, establishes the scope of warranty coverage, duration, claim procedures, and remedies available to property owners. It includes specific provisions for defect resolution, maintenance requirements, and warranty limitations, while ensuring compliance with provincial-specific building codes and warranty program requirements.

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What is a Construction Warranty Agreement?

The Construction Warranty Agreement serves as a critical document in Canadian construction projects, providing essential protection for property owners while clearly defining contractors' obligations regarding their work quality. This agreement becomes necessary upon completion of construction projects or major renovations, typically being executed alongside or shortly after the main construction contract. The document must comply with various Canadian federal and provincial regulations, including the National Building Code, provincial building codes, and consumer protection laws. It outlines detailed warranty coverage for different building components, claim procedures, and maintenance requirements. The Construction Warranty Agreement is particularly important in jurisdictions with mandatory warranty programs, such as Ontario's Tarion warranty system for new homes, and can be customized to address specific provincial requirements while maintaining core warranty provisions.

What sections should be included in a Construction Warranty Agreement?

1. Parties: Identification of the warrantor (construction company/contractor) and warranty beneficiary (property owner/client)

2. Background: Context of the construction project and purpose of the warranty agreement

3. Definitions: Definitions of key terms used throughout the agreement including technical construction terms

4. Scope of Warranty: Detailed description of what is covered under the warranty, including specific building components and systems

5. Duration of Warranty: Warranty period(s) for different components and when coverage begins and ends

6. Warranty Standards: Performance standards and quality expectations that the construction must meet

7. Exclusions: Specific items, conditions, or circumstances not covered by the warranty

8. Claim Procedures: Process for submitting and handling warranty claims, including notification requirements and response times

9. Remedies: Available remedies for warranty breaches, including repair, replacement, or compensation

10. Maintenance Requirements: Owner's obligations for proper maintenance to maintain warranty validity

11. Dispute Resolution: Procedures for resolving disputes related to warranty claims

12. Assignment: Terms regarding transferability of warranty to subsequent property owners

13. Governing Law: Applicable laws and jurisdiction governing the warranty agreement

What sections are optional to include in a Construction Warranty Agreement?

1. Extended Coverage Options: Additional warranty coverage options available for purchase

2. Specific Building Systems: Detailed warranty terms for specific systems like HVAC, electrical, or plumbing when these require special attention

3. Commercial Property Provisions: Additional terms specific to commercial properties when applicable

4. Insurance Requirements: Specific insurance requirements for either party, if not covered in main construction contract

5. Emergency Services: Procedures and coverage for emergency repairs when offered

6. Subcontractor Warranties: Integration of subcontractor warranties when these are passed through to the owner

What schedules should be included in a Construction Warranty Agreement?

1. Schedule A - Property Description: Detailed description of the property and construction project covered by the warranty

2. Schedule B - Warranty Coverage Details: Comprehensive list of covered items and their respective warranty periods

3. Schedule C - Performance Standards: Detailed technical standards and specifications that the construction must meet

4. Schedule D - Maintenance Requirements: Detailed maintenance procedures required to maintain warranty validity

5. Schedule E - Claim Forms: Standard forms and procedures for submitting warranty claims

6. Appendix 1 - Construction Documentation: Relevant construction drawings, specifications, and permits

7. Appendix 2 - Manufacturer Warranties: Copies of manufacturer warranties for installed materials and equipment

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Canada

Publisher

Genie AI

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Construction

Real Estate

Property Development

Infrastructure

Commercial Property

Residential Property

Industrial Construction

Architecture and Design

Engineering

Insurance

Legal Services

Relevant Teams

Legal

Construction Management

Quality Assurance

Contract Administration

Risk Management

Property Management

Compliance

Claims Processing

Project Management

Customer Service

Technical Support

Documentation

Relevant Roles

Construction Manager

Project Manager

Contract Administrator

Legal Counsel

Warranty Manager

Quality Assurance Manager

Construction Site Supervisor

Property Developer

Real Estate Manager

Building Inspector

Compliance Officer

Risk Manager

Insurance Underwriter

Claims Adjuster

Facilities Manager

General Contractor

Construction Company Owner

Property Manager

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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