Sometimes the law imposes implied warranties that can be disclaimed, or, in the case of residential contracts, some implied warranties are inherent and cannot be waived. Whether you are a contractor or a project owner, understanding these issues during contract formation, execution, and beyond is critical. The issues surrounding implied warranties most often arise in the context of residential construction.
There are generally two implied warranties that apply to residential construction cases: The Implied Warranty of Habitability and The Implied Warranty of Good Workmanship. The Implied Warranty of Good Workmanship provides a warranty to the owner of a construction project, repair or modification of existing property that it will be performed in a “good and workmanlike manner.” “Good and workmanlike” means the quality of work must be equal to the work performed by someone who has “the knowledge, training, or experience necessary for the successful practice of a trade or occupation” when judged by someone who is “capable of judging such work.” The Implied Warranty of Habitability provides that the good and workmanlike performance of the builder must result in a building that is habitable for residential use and that is safe, sanitary, and fit for human habitation at the time of the sale of a new house. Unlike the Implied Warranty of Good Workmanship, it cannot be waived by the contract and is inherent in the residential construction project.