ABSTRACT
Collateral warranties are agreements which are associated with another 'primary' contract. They often contain obligations such as using materials of an appropriate quality and carrying out work in a professional, workmanlike manner. One of the key objections to warranties is that they are often drafted without any reference to the obligations under the subcontract for the actual works. As a result, warranties often place greater or conflicting obligations upon the Subcontractor. One of the most common obligations in warranties is the requirement to obtain insurance cover for anything up to 12 years and, in some cases, beyond that. Under the standard warranties, the Sub-Contractor warrants that he has exercised all reasonable skill and care in the design of the subcontract works. Warranties often provide for rights of unlimited assignment without the consent of the Subcontractor.
