Most residential contractors in Georgia never considered writing warranties for their work. Builders usually think of warranties as an extra responsibility with little payback: Better to ignore the issue and hope clients never give it a thought.
That’s about to change. Georgia Code Section 43-41-7 (the Written Warranty Act) now requires that residential contractors deliver a written warranty before starting work on any job valued at over $2,500. The Georgia legislature left it to the State Licensing Board for Residential and General Contractors to decide what has to be in that warranty. The Board’s regulation went into effect on August 4, 2008.
There are two ways to look at this. First, the Written Warranty Act is just another burden contractors have to carry (or find a way to avoid). Second, contractors could decide that the Written Warranty Act is an opportunity likely to make or save time and money.
When a customer buys a car or a set of tires or get your car serviced, you get a warranty as part of the deal. That warranty draws a line in the sand that identifies exactly what’s covered and what isn’t, reducing the margin for dispute. Car dealers and appliance manufacturers wouldn’t even consider doing business without a written warranty, (for their own protection). Licensed residential contractors need warranty protection even more than appliance dealers. Their risk of loss is even greater. A good contract with favorable warranty terms will reduce the risk they face.
And the Georgia Written Warranty Act makes it easy. The only iron-clad warranty rules:
1. It has to be in writing.
2. It has to explain what’s covered and what’s excluded.
3. It has to identify duration of the warranty.
4. It has to describe claim procedures and
5. response options.
6. And has to assign any manufacturer warranties. What a contractor says in his warranty on those six points is entirely up to the contractor. They can cover or exclude anything and for any period so long as the warranty touches all six points as listed above.
