What is the difference between a guarantee and a warranty in construction?

A guarantee and a warranty are two important legal concepts in construction law in Texas. A guarantee is a promise made by the builder/contractor to the owner/client that the work will be completed in a certain timeframe and to a specified standard of quality, often with a financial penalty if the work is not done as promised. A warranty is a longer-term guarantee made by the builder/contractor to the owner/client that the work will remain of a certain quality for a certain timeframe, usually for at least one year. In Texas, a guarantee is typically created by the builder/contractor in the contract that is signed by both the builder/contractor and the owner/client. The guarantee promises that the work will be done on time and to a certain quality standard. If the work is not completed as promised, the owner/client can demand a financial penalty in compensation. On the other hand, a warranty is created by the builder/contractor’s workmanship and materials, and typically lasts for a specified period of time after the work is finished. During the warranty period, the builder/contractor is responsible for any problems resulting from their work and must remedy any defects. If the builder/contractor fails to fix any defects within the warranty period, the owner/client can file a lawsuit. Overall, the main difference between a guarantee and a warranty in construction law in Texas is that a guarantee is a promise made in the contract between the builder/contractor and the owner/client, while a warranty is a longer-term guarantee of the builder/contractor’s quality of workmanship and materials.

What is the difference between a guarantee and a warranty in construction?

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