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Collateral Warranty Agreement

Collateral Warranty Agreement Template for Switzerland

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Key Requirements PROMPT example:

Collateral Warranty Agreement

"I need a Collateral Warranty Agreement for a large-scale commercial development project in Zurich, where our main contractor needs to provide warranties to both the building's future tenants and our project funder, with specific focus on construction quality and materials used."

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Document background
The Collateral Warranty Agreement serves as a crucial legal instrument in Swiss construction and development projects, establishing direct contractual relationships between parties who would otherwise have no direct legal connection. It is commonly used when funders, purchasers, or tenants require direct warranties from contractors, sub-contractors, or design professionals who are contracted by the developer/employer. The document aligns with Swiss legal principles, particularly the Swiss Code of Obligations, and typically includes warranties regarding workmanship, materials, design, and professional services. It's essential in risk management and providing security for stakeholders who rely on the quality and performance of construction works or professional services but are not party to the main contract.
Suggested Sections

1. Parties: Identifies all parties to the agreement: the Warrantor (contractor/consultant/supplier), the Beneficiary, and the Employer

2. Background: Sets out the context of the main contract and the purpose of the warranty

3. Definitions: Defines key terms used throughout the agreement, including references to the main contract and relevant works/services

4. Warranties and Undertakings: Core section detailing the warranties given regarding the works/services performed under the main contract

5. Standard of Care: Specifies the required standard of skill, care, and diligence in performing the works/services

6. Duration of Liability: Specifies the period during which the warrantor remains liable under the warranty

7. Limitations of Liability: Sets out any caps or limitations on the warrantor's liability

8. Insurance Requirements: Details the insurance coverage the warrantor must maintain

9. Assignment and Third Party Rights: Provisions regarding the right to assign the benefit of the warranty

10. Notices: Specifies how formal communications between parties should be made

11. Governing Law and Jurisdiction: Confirms Swiss law as governing law and specifies jurisdiction for disputes

Optional Sections

1. Step-in Rights: Optional provisions allowing the beneficiary to step into the main contract - typically included for larger construction projects

2. Copyright License: Required when the warranty covers design services or intellectual property

3. Professional Indemnity Insurance: Specific insurance requirements for professional service providers

4. Deleterious Materials: Warranties regarding materials used - particularly relevant for construction contracts

5. Payment Provisions: Required when the warranty includes specific payment obligations or conditions

6. Dispute Resolution: Alternative dispute resolution procedures - recommended for complex projects

Suggested Schedules

1. Schedule 1 - Main Contract Particulars: Details of the main contract between the warrantor and the employer

2. Schedule 2 - Works/Services Description: Detailed description of the works or services covered by the warranty

3. Schedule 3 - Professional Indemnity Insurance Details: Specific details of required insurance coverage and limits

4. Schedule 4 - Form of Notice of Assignment: Template for formally notifying assignment of the warranty

5. Appendix A - Plans and Specifications: Relevant technical documentation referenced in the warranty

6. Appendix B - Material Warranties: Specific warranties relating to materials used (if applicable)

Authors

Alex Denne

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

alex.den.21@genieai.co
Relevant legal definitions







































Clauses






























Relevant Industries

Construction

Real Estate

Architecture

Engineering

Professional Services

Property Development

Infrastructure

Commercial Property

Residential Development

Financial Services

Relevant Teams

Legal

Construction

Development

Operations

Risk Management

Procurement

Technical Services

Commercial

Facilities Management

Property Management

Design

Project Management

Contract Administration

Relevant Roles

Project Manager

Construction Manager

Legal Counsel

Contract Manager

Development Director

Chief Operating Officer

Risk Manager

Procurement Manager

Technical Director

Commercial Director

Facilities Manager

Property Manager

Design Manager

Architect

Engineer

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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