Time Limits on Claims vs period for correction of Work
I can't quite understand the relationship between §12.2.2 and §15.1.2 in A201 - General Conditions of the Contract for Construction.
§12.2.2 After Substantial Completion saying that the Owner has one year to notify the Contractor of the Work that is not in compliance with Contract Documents. And Contractor shall promptly correct such work.
§15.1.2 Time Limits on Claims saying that Owner and Contractor shall commence all Claims related to the Contract within 10 years after the date of Substantial Completion.
So let's imagine that Contractor never installed the vent into an elevator shaft, shown in the construction documents. How much time after Substantial Completion does the Owner has to bring this issue to the contractor's attention?
Please let me know. I can't quite figure if it is one year or ten years.
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This trips up everyone . . .
Both the correction of work period and the warranty begin at substantial completion (the certificate of occupancy has been issued and the building is fit to be occupied for its intended use, even if the punch list items haven’t been yet resolved).
Correction of work period: until one year after substantial completion. The burden of proof is on the contractor. . . so almost for sure, the contractor would have to fix almost any problem for free unless the contractor can PROVE he didn't mess up.
Warranty period: varies by state (the end-date is another complex topic), but the contract default is 10 years past the substantial completion date. For years one through 10, the contractor is within his rights to refuse to fix the work. . . and the burden of proof is on the owner. I suspect that, neve installing a vent that was on the drawings would be so easily-provable . . . if the contractor refused, and the owner filed a claim, the contractor would likely lose and have to come out and fix the problem for free.
Separately, but somewhat related to the warranty, as part of project close-out, the contractor hands off a manual of equipment serial numbers and warranties to the owner for posterity.
Contractor’s warranty:
Lasts until the statute of limitations and statute of repose extinguish the warranty.
Materials are new and of good quality
Work free of defects
Work will meet the requirements of the contract documents (here's where the missing vent would be covered)
Excludes damage from: improper use, alterations by someone other than the contractor, improper maintenance, and from normal wear-and-tear.
Warranties are both opaque and fluid in the construction process so very little about how they will be used in practice can be predicted with certainty.
There's so much confusion on this topic, I think I'll now put it in the queue to cover in one of our regular Thursday Zoom meetups. Look out for that soon.
--Michael Ermann, Amber Book creator
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Hello Michael,
Thank you for the explanation, where do you post your zoom meetings ? I seen a lot on youtube but don't know how to sign up? my email is Luc734@gmail.com, currently studying your material for PA,PDD,PPD & CE
Thank you for your feedback!
Fabiola
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I’m putting you on our mailing list so you’ll get weekly notifications of our topics (for others that want to get on the list, email firms@amber-book.com….we usually have about 250 on each weekly call and it’s free to join)
40 Minutes of Competence Zoom takes place at 6pm ET Thursdays in our Zoom link https://us02web.zoom.us/j/83922907346
We put recordings of the study sessions inside the Amber Book course, at the relevant location for the content covered. Typically this is in a flashcard or practice exam answer explanation.
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