The LEVEL5 Construction Warranty Process Explained

When you embark on your next credit union or community bank branch construction project, you’re making an investment in your growth for years to come. That’s why you want to know that all aspects are completed correctly during the build process, so your facilities will work properly to meet your goals. 

Here, we want to break down our One Year Warranty process that’s offered on new branch Design-Build projects so you can better understand how your investment receives an extra layer of protection. Remember, each individual contract is different, but here we provide a general overview.  

Let’s jump in. 

When Does The Warranty Begin? 

Warranty start date can be determined by one or a combination of the following scenarios: 

A. When the building is occupied and used by the Owner for its intended purpose. Sometimes, owners move in before the final punch list is completed, but when this occurs, the owner gets Beneficial Occupancy and is utilizing the building systems. 

And/Or

B. When the final punch list is generated and then subsequently addressed and completed by the General Contractor and then when the Architect Officially Issues the Certificate of Substantial Completion (this is contingent upon the punch list being completed satisfactorily.)

If you’re unaware of what a punch list is, it’s a document created towards the completion of a project, which identifies work that has not met specifications of the contract. It is generated by a site walk-through with the LEVEL5 Superintendent, Project Manager, the Owner (You), and the Architect. 

Before a final payment is issued, the General Contractor must successfully resolve all outlined tasks.

The key to warranty is when the project is substantially complete and contracts vary as to the definition of Substantial Completion. Every contract can be different. From our perspective, the key is the definition of Substantial Completion. 

What Does The Warranty Cover

Speaking in the turnkey context, a warranty will essentially cover all aspects of the building’s structural quality, appearance, and function including, but not limited to: 

• Design flaws by the Architect 
• Mistakes made by any Contractors  
• Damage to items or spaces 
• Incorrect installation of equipment/malfunctioning equipment 
• Promised elements that were not delivered  

When orchestrating a project, we create subcontracts with Subcontractors.

Subcontractors are often referred to as Trades and are managed and directed by a General Contractor to complete specific aspects of your project. Some examples of common Subcontractors include the Electrician, Roofer, Landscaper, Window Installer, Brick Mason, etc… These subcontracts have a One Year Warranty, which runs concurrently with LEVEL5‘s overarching general contract.  

The General Contractor will typically dictate to Subcontractors when their One Year Warranty on work begins. Our contracts with them allow us to require that they solve any issues resulting from their work on the project.  

In addition to the One Year Warranty period, there are multiple separate Manufacturers’ Warranties running congruently from your project.

For example, the manufacturer of the roofing products, flooring materials, plumbing fixtures, HVAC systems, etc., usually provides a warranty on those materials. The warranty timeframe varies depending on the product, but works to cover factory defects if they occur. 

It’s crucial to note that warranties normally don’t cover problems that are a result of neglecting prescribed maintenance. Maintenance requirements are usually specified in close– out documents at the end of a project.   

The Final Step of The One Year Warranty  

The final step is to ensure all final warranty items are accounted for and solved for by the 12-month mark. 

This final walk-through is made 30 days before the One Year period ends and is typically attended by the Owner and our Project Manager.

If there are outstanding warranty items requiring a solution, our team quickly takes action to ensure that the proper party responsible resolves the issues as soon as possible.  

Contact us to learn more details on our extensive warranty. We work meticulously so that your final building is up to world-class standards, ready to meet the needs of your institution.