The RIAI contract provides that collateral agreements in this form published by the RIAI Construction Industry Federation and Society of Chartered Surveyors acting jointly and current at the designated date may be required as in between the employer and nominated subcontractors.\u00a0 The terms are deemed to be amended and supplemented to entitle the employer to give effect to the terms of the collateral agreement.<\/p>\n
Under the relevant collateral warranty, the subcontractor warrants that it has exercised and will exercise all reasonable skill in the design of the subcontract works in so far as they have been designed by the contractor.\u00a0 It warrants that it has exercised and will exercise reasonable care and skill in selecting materials and goods, where he has so selected them, under the subcontract.\u00a0 Finally, it warrants the exercise of reasonable care and skill in the satisfaction of any performance specification or requirement in so far as it is included or referred to in the tender as part of the description of the subcontractor’s work.<\/p>\n
The employer undertakes to pay the subcontractor directly in relation to both interim and final payments, if the contractor defaults in payment.\u00a0The collateral agreement provides that the subcontractor is to pay compensation in the event of a termination of the subcontract, including additional costs and re-nomination.\u00a0 It provides that the tender of the subcontractor shall not contain exclusions or limitations of his liability to the contractor.<\/p>\n
The collateral contract may be bonded or guaranteed to protect against the risk of the subcontractor’s insolvency.\u00a0 The bond would pay up to a percentage of the contract sum only.\u00a0The main contract may itself be bonded.<\/p>\n\n
\n <\/div>\n\n","protected":false},"excerpt":{"rendered":"
Nature of Collateral Warranties Collateral warranties are commonly given in construction projects.\u00a0 A collateral warranty is a contractual obligation, usually undertaken by a consultant, contractor or subcontractor to a third-party with whom he does not have a direct contractual relationship.\u00a0 Contractual warranties will typically be required by the terms of the tender. The contractual warranty […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"footnotes":""},"categories":[44],"tags":[],"_links":{"self":[{"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/posts\/484"}],"collection":[{"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/comments?post=484"}],"version-history":[{"count":6,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/posts\/484\/revisions"}],"predecessor-version":[{"id":493,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/posts\/484\/revisions\/493"}],"wp:attachment":[{"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/media?parent=484"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/categories?post=484"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/tags?post=484"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}