A warranty in an insurance policy is a promise by the insured party that statements affecting the validity of the contract are true.
Contract Warranty – Towards Insurance Claims
Engineers and architects are expected to not only possess a sound technical knowledge and sheer expertise in their craft, but also adequate experience. These are the primary requirements. Any contractor goes in assuming these criteria have been met before hiring. While cost is a very strong factor as well, as an engineer or an architect, it is essential to possess an adequate knowledge and understanding of the literature in any agreement. Signing the agreement with clear understanding of each term is mandatory.
Before entering into any significant venture, it is the vital responsibility of the engineer and the architect to go through the complete contract and sign it. With any such agreement comes a big liability. It is extremely important to get the job done to the standards mentioned in the agreement, within the stipulated time mentioned and costs budgeted.
The raw materials provided, the labor force allotted for assignment, cost budgets and the standards of work anticipated by the owners in the stipulated time, should all fall in line. Sometimes, owners sneak in certain words that are less obvious in the contract. If an engineer misses out one or two such small details, it could be detrimental.
It is because of the fact that insurance could be claimed, stating the negligence of the engineers and architects. The owner might even claim after the whole work is finished, saying that the work is not unto the standards expected or mentioned in the contract. If the claims of negligence are made, then insurance must be paid.
Standards must be maintained at all times when performing work. Better standards of work executed under similar conditions by different engineers in the same locality could be taken into account for claiming negligence. In that case, the contract warranty is mandatory to claim insurance.