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Agreements for lease for construction lawyers—collateral warranties and third party rights
Published by a LexisNexis Construction expert
Practice notesAgreements for lease for construction lawyers—collateral warranties and third party rights
Published by a LexisNexis Construction expert
Practice notesIn an agreement for lease which provides for construction works to be carried out, an obligation for the landlord to procure collateral warranties (or third party rights) in favour of the tenant is common practice. This Practice Note looks at why tenants will request collateral warranties, which parties typically provide warranties and the considerations for construction lawyers when negotiating the terms of the warranties and related provisions in the agreement for lease.
Why does the tenant require warranties?
Defects which arise following completion are a fairly common feature of construction projects. Many defects arise during the defects liability period and the contractor will generally be obliged to rectify them in accordance with the building contract (see Practice Note: Defects liability period and rectification of defects). However, other defects (which may be more serious) can often manifest themselves later on, ie when the contractor is no longer contractually obliged under the building contract to return to site to correct them, and after the landlord/developer's liability to the tenant under the agreement for lease for
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Practice notes 7
- Agreements for lease for construction lawyers
- Agreements for lease for construction lawyers—defects and dispute resolution
- Agreements for lease for construction lawyers—development obligations
- Agreements for lease for construction lawyers—tenant inspections
- Agreements for lease for construction lawyers—time issues
- Agreements for lease for construction lawyers—variations
- Insurance obligations in an agreement for lease
Q&As 1