Residential property
08 Nov 2019 News

All about timing for collateral warranty

Collateral warranties are an integral part of the construction contract landscape, filling the ‘black hole’ where the beneficiary (usually a purchaser, tenant or funder) suffers loss due to the fault of the contractor and/or design professionals but where there is otherwise no direct contractual relationship between beneficiary and contractor.  

These losses cannot be pursued under the contract by the employer, as the employer would not be the party who suffered loss. The collateral warranty agreement therefore provides the beneficiary with rights against the granter equivalent to the rights of the employer under the contract.  
Read Keith Emmerson's full article from the latest issue of Project Scotland Magazine here.
Back to news list

How can we help you today?

Gillespie Macandrew LLP’s website uses cookies. By continuing to browse you are agreeing to our use of cookies. Click here for more information.