The warranty bond is an assurance by the contractor and the contractor’s surety that the contractor’s warranty obligations will be performed and completed in accordance with the terms of the construction contract. The warranty bond specifically does not extend to warranties provided by the contractor’s suppliers and manufacturers.
The parties should note that Section 2 of the warranty bond sets forth the extent of the bond’s coverage, which is equal to the contractor’s warranty obligations set forth in the construction contract. The parties should carefully review the contractor’s warranty obligations in the construction contract prior to executing the bond. If the contractor’s warranty obligations in the construction contract are non-standard or overly broad, the surety may find it difficult to underwrite the warranty.
Normally, these bond forms are prepared for execution by the surety or the surety’s agent.
AIA Document A313–2020 establishes the maximum penal amount that may be due the owner if the contractor fails to fulfill its warranty obligations set forth in the construction contract.
• A201®–2017, General Conditions of the Contract for Construction
• A232™–2019, General Conditions of the Contract for Construction, Construction Manager as Adviser Edition
• A151™–2019, Standard Form of Agreement Between Owner and Vendor for Furniture, Furnishings and Equipment
• A701™–2018, Instructions to Bidders
• A751™–2019, Invitation and Instructions to Vendors for Quotations for Furniture, Furnishings, and Equipment
As well as the following free guides:
• Guide for Supplementary Conditions (A503™–2017)