Collateral warranties are used as a supporting document to a primary contract where an agreement needs to be put in place with a third party outside of the primary contract. Sometimes an architect, contractor, or sub-contractor will need to warrant to a funder, tenant or purchaser that it has fulfilled its duties under a building contract.
Collateral warranties often contain obligations that affect the consultant or contractor, such as using materials of an appropriate quality, and carrying out work in a professional, workmanlike manner. It can also provide the third-party contractual rights enabling it to claim for losses which would not otherwise be recoverable.
JCT does not issue a Consultant Collateral Warranty. You may wish to consider adapting one of the JCT Collateral Warranties or using other suitable forms.
We regret JCT cannot advise on amending its forms, and it cannot recommend any particular forms of collateral warranty for consultants.
Click on one of the range of JCT Collateral Warranties to view in more detail:
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