National Roofing Legal Resource Center

Contract provision addresses payment to roofing contractor as a condition precedent to warranty work

This contract provision may be helpful for contractors working on residential properties. If the contractor does not get paid in full, he or she may not want to honor the warranty until the client pays. This provision makes the client's full payment to the contractor a condition precedent to the contractor having to complete warranty work for the client. This provision also prevents the contractor from being liable for any damages suffered by the client arising from the contractor not completing warranty work before the client has paid. Warranty documents often have language stating the warranty is not effective until the contractor has been paid in full, but including this provision in the contract helps contractors reinforce the requirement for full payment before the warranty obligation arises. The contractor should give the client the warranty before final payment to achieve final completion and the ability to sue for payment, if necessary.

Payment to Roofing Contractor is a Condition Precedent to Warranty Work: Customer's full payment to roofing contractor is an express condition precedent to roofing contractor’s obligation to perform warranty work. Roofing contractor is not obligated to perform warranty work if roofing contractor has not been paid. Nevertheless, the warranty period runs from the date roofing contractor completed the roof installation. Roofing contractor has no liability for damages, including but not limited to property, consequential and replacement damages, arising from roofing contractor not performing warranty work because of client's failure to pay contractor in full. Contractor's warranty period to client will not be extended because of client's failure to pay contractor in full.


6/28/2019



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