In the hurry to sign up to a new deal often much of the attention focuses on the principal contract: whether this is the main contract between the contractor and the employer, or the subcontract between supply chain member and main contractor. At the edges of the deal are an equally important set of agreements - collateral warranties - which are sometimes overlooked. Despite being treated as the bridesmaid, rather than the bride, collateral warranties have an important role to play and carry with them significant risks and obligations of their own. There have also been a number of court decisions from last year that have thrown some of these risks and obligations under the judicial spotlight which it may be helpful to consider. In the highways sector, the majority of projects (in the UK and common law jurisdictions, anyway) will typically require the provision of collateral warranties. They are a standard feature of many of the standard form term maintenance contracts and a pre-requisite for the majority of professional appointments by which designers and other professional consultants are employed.
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