Understanding Contracting Warranties

Carlsbad, CA, June 2, 2015—When you're getting ready to build or remodel, many things are buzzing through your brain: building design, budgeting, and whether or not the new deck will be ready for summer. However, the last thing on your mind may also be the most important: the contractor's warranty.

A contractor's warranty ensures quality workmanship and required repairs if faulty products or workmanship is discovered, explains Isabel Alvarez, REALTOR® at CENTURY 21 Award. While not every state requires by law that a contractor doles one out, you can always request one, and a contractor who shies from providing a warranty may be a red flag.

“When your contractor confirms they do offer a warranty, ask to see a copy of the written provisions to make sure you have sufficient protection from defective work,” suggests Isabel. You may want to become familiar with your state law, if applicable.

But what should you look for in your contractor's warranty? Several things, according to Isabel. “A well written warranty document detailing specific information should be provided and incorporated as an addendum to the construction contract.” Information should also be provided as to the procedure to follow for prompt warranty services, as well as what happens should a dispute arise over warranty issues.

Some contracts include allowances, which should be reviewed together.

“Rather than price specific products or materials, many contractors prefer to use product allowances,” explains Isabel. A building allowance is an amount included in the contract to be used toward the purchase of these products and materials as they are selected by the consumer.

Typical categories where allowances might be used include flooring, cabinets, and lighting fixtures. Allowances allow homeowners more time to finalize exact selections as the project progresses, and they can simplify the cost control process. The disadvantage, however, is that the cost of final selections can easily exceed the amount of money allowed, resulting in significant extra charges to the homeowner.

“Shop for each allowance category before you finalize the allowance amounts provided in the contract,” suggests Isabel. This way, you can budget for additional funds or adjust allowances to better reflect the actual monies required.

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For more remodeling information, please contact Isabel Alvarez at isabelalvarez@century21award.com, (760) 207-2831, or www.century21award.com/agents/IsabelAlvarez

For additional real estate information, please contact CENTURY 21 Award at info@century21award.com, (800) 293-1657, or CENTURY 21 Award.