Contractual relationship between parties

They are usually executed as a deed meaning that no consideration is required (no money has to change hands) and the limitation period increases from 6 years to 12 years.

Collateral Warranties are used when there is a need for a contractual relationship between parties involved in a building project and those who are not involved within the primary contract but have an interest in the building.

They are usually executed as a deed meaning that no consideration is required (no money has to change hands) and the limitation period increases from 6 years to 12 years.

If a dispute arises between the parties the usual course is to litigate through the courts, however due to a recent case (Parkwood Leisure Ltd v Laing O’Rourke Wales & West Ltd (2013) (TCC)) the beneficiaries of a collateral warranty may be able to refer their dispute to construction adjudication dependent on whether the collateral warranty is seen as a construction contract under the Housing, Grants, Construction and Regeneration Act 1996.

If you are interested in understanding how Taylor&Emmet can help you then please contact:

Richard Kay

Richard Kay

Partner - Commercial Property

0114 218 4331

Office: Bakewell

Email: richard.kay@tayloremmet.co.uk

Contact Richard Kay  or online enquiry form