| Most residential contractors in Georgia never | | | | even more than appliance dealers. Their risk of |
| considered writing warranties for their work. | | | | loss is even greater. A good contract with |
| Builders usually think of warranties as an extra | | | | favorable warranty terms will reduce the risk |
| responsibility with little payback: Better to ignore | | | | they face. |
| the issue and hope clients never give it a thought. | | | | And the Georgia Written Warranty Act makes it |
| That's about to change. Georgia Code Section | | | | easy. The only iron-clad warranty rules: |
| 43-41-7 (the Written Warranty Act) now requires | | | | 1. It has to be in writing. |
| that residential contractors deliver a written | | | | 2. It has to explain what's covered and what's |
| warranty before starting work on any job valued | | | | excluded. |
| at over $2,500. The Georgia legislature left it to | | | | 3. It has to identify duration of the warranty. |
| the State Licensing Board for Residential and | | | | 4. It has to describe claim procedures and |
| General Contractors to decide what has to be in | | | | 5. response options. |
| that warranty. The Board's regulation went into | | | | 6. And has to assign any manufacturer warranties. |
| effect on August 4, 2008. | | | | What a contractor says in his warranty on those |
| There are two ways to look at this. First, the | | | | six points is entirely up to the contractor. They |
| Written Warranty Act is just another burden | | | | can cover or exclude anything and for any period |
| contractors have to carry (or find a way to | | | | so long as the warranty touches all six points as |
| avoid). Second, contractors could decide that the | | | | listed above. |
| Written Warranty Act is an opportunity likely to | | | | There's a certain symmetry to this new law. For |
| make or save time and money. | | | | several years, Georgia's Right to Repair Act has |
| When a customer buys a car or a set of tires or | | | | protected residential contractors from suit over |
| get your car serviced, you get a warranty as | | | | claimed construction defects. Before filing suit, the |
| part of the deal. That warranty draws a line in the | | | | home owner has to work through a 90-day |
| sand that identifies exactly what's covered and | | | | settlement procedure. |
| what isn't, reducing the margin for dispute. Car | | | | So now the scales are in balance: Obligations of |
| dealers and appliance manufacturers wouldn't even | | | | the homeowner under the Right to Repair Act |
| consider doing business without a written | | | | weigh against obligations of the contractor under |
| warranty, (for their own protection). Licensed | | | | the Written Warranty Act. In a way, it makes |
| residential contractors need warranty protection | | | | perfect sense. |
