When you're trying to decide which company to hire for your major home improvement projects, many different factors can affect your decision. People often evaluate a company's quotation based on price, reputation, or products to be used.
But before you decide which contractor to choose, one of the most important things to understand is warranty. Unfortunately, this can also be the item that is least understood.
There are two components to a warrantymaterial and labour.
The material warranty applies to the products used for the project. Material warranties can be confusing, particularly for items such as furnaces. Since a furnace consists of many different mechanical and electronic parts, some of the furnace parts have different warranty periods than others; a furnace heat exchanger will probably have a longer warranty period than the furnace control board, for example.
Some items will not be covered under the warranty for a product. If fiberglass roofing shingles fade because of exposure to the elements, fading will not typically be covered within the product warranty.
Make sure you know what is and what is not covered under the material portion of the warranty. Material warranties are provided and backed by the product manufacturer, so be aware, in many cases you will have to deal directly with the manufacturer to resolve product warranty issues.
The labour warranty will cover workmanship issues. Many renovation contractors offer an industry-standard two-year labour warranty. The workmanship warranty standard does vary between industries, though. Some companies will offer a one-year workmanship warranty on jobs such as appliance repairs, exterior painting and so on. This means the installer or contractor should take care of any costs associated with installation issues within the specific time frame.
Warranties are important because they are a guarantee which specifies how long the contractors' workmanship or the products used in the project are supposed to perform as required.
Many companies advertise a lifetime guarantee or warranty.Sometimes it is just thata warranty that guarantees the project for life, covering all materials and labour.
You must keep in mind that lifetime warranty doesn't always mean that a product is guaranteed to perform the same in the first year as it will in the twentieth. Often lifetime warranties are pro-rated, which means that each year into the warranty period, the warranty coverage is reduced. This is similar to the wear warranty in the automotive tire industry.
For example, in the roofing industry a lifetime warranty has a term of 50 years. In year ten, the warranty coverage for the product is 20% less than in first year, meaning that you would receive 80% of the value of the product if you had a warranty claim in the tenth year. Warranty coverage is pro-rated over the 50 year term, which means that each year into the warranty period, the coverage amount decreases by 2%. These details are usually explained in the small print on the contract, so be sure to read your contract thoroughly. If you have any concerns regarding the warranty, address them with your contractor before you sign a contract.
If a company you have dealt with happens to go out of business, more often than not you will be out of luck with respect to the labour or workmanship component of the warranty; however the warranties provided by the product manufactures should still be in place.
In the end, a warranty is only as good as the company that stands behind it, so make sure you choose a reputable contractor and supplier that have a proven track record in the industry. Do your due diligence and obtain the proper contractor referral for your home improvements.
