Sub-Contractor Collateral Warranty (To Employer)
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ƵSource file
Jurisdiction
England and WalesRelevant sectors
Type of legal document
⛪ Subcontractor collateral warrantyBusiness activity
Create collateral warrantyA collateral warranty is a written agreement between a contractor and a subcontractor that lists the rights, duties, and obligations of each party. The written agreement also establishes a legal relationship between the parties and can be used as evidence in a court of law.
This template serves as a contractual agreement between the sub-contractor and the employer, outlining various provisions, terms, and conditions. It covers a range of important aspects, such as project specifications, quality standards, completion deadlines, payment terms, liability limitations, and dispute resolution procedures.
The Sub-Contractor Collateral Warranty template aims to protect the interests of the employer by ensuring that the sub-contractor fully shoulders their responsibilities and liabilities. It clarifies that the sub-contractor will be directly liable to the employer for any losses, damages, or defects arising from their work, even if the primary contract is between the employer and the main contractor.
Under UK law, this template includes provisions that comply with legal requirements and regulations specific to the construction industry. It may also include clauses relating to insurance coverage, intellectual property rights, confidentiality obligations, and termination conditions.
Employers often require sub-contractors to sign a Collateral Warranty to mitigate potential risks and ensure that all parties involved in a construction project are bound by the same obligations. This template, specifically designed for the UK, provides a comprehensive framework for structuring and drafting such a Collateral Warranty.
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