ABSTRACT

Most offshore construction contracts will contain what is described as either a 'warranty' or a 'guarantee' clause in which certain undertakings are made by the Contractor about the condition of the work and obligations imposed on it in relation to the same. In the context of offshore construction, both words denote only one thing that is a limitation of the Contractor's liability for defective work. The main purpose of a Contractor providing a warranty in relation to the work is in order for the Contractor to ensure that its liability for the work following delivery is limited to a fixed period, and to the specific obligations provided in the warranty clause. Depending on the nature of the work, offshore construction contracts would normally fall within either of two categories: a contract for the sale of goods or one for the supply of goods and services.