Content
Warranty
This page is an extract from the full topic guidance on Warranty [62KB PDF]. It details any Constraints associated with warranty, provides a summary of the Authoritative Guidance and lists any essential reading, further reading or associated documents.
If you have any queries on this topic, please contact the Sponsor by email: DGDC CS-2B-Asst-Hd.
None.
Where goods are found to be defective upon delivery
either before or after acceptance, or services are not performed to the required
standard, Ministry of Defence (MOD) policy is to secure post delivery performance through reliance on
remedies implied by General Law or by use of an Express Warranty. The decision
on the type of remedy should be made by the acquisition team before placing a
contract, based upon the assessment of post delivery performance risks in the
procurement and support strategy for the particular requirement.
Express Warranties should be obtained from Contractors,
where they can offer value for money, in the procurement of technically complex
or safety critical goods. They are also likely to be of benefit where
militarised versions of commercial goods are procured from sectors of Industry
who offer Express Warranties as a matter of course.
The commercial aspects that need to be taken into
account in arriving at the decision on whether to rely on remedies implied by
General Law or an Express Warranty, and the factors to be addressed in drafting
an Express Warranty are provided in the Authoritative Guidance.
Risks should be allocated to the party best able to
manage them and invariably, in the case of post delivery performance, this is
the contractor.
Contract prices, whether secured through competition or
by negotiation in a non-competitive procurement, should reflect the agreed
apportionment of risk.
Effective systems must be in place to monitor, identify
and report on defects or poor performance. Clear evidence will be essential if
MOD is required to pursue any remedies, irrespective of whether they are implied
by General Law or available under an Express Warranty.
Associated Documents
Annex A - Express Warranty: Factors To Consider [31KB PDF]
Annex B - Example of an Express Warranty: Parts and Labour [47KB DOC]
Further Reading
Requests For Contract Action (RCA) topic
Termination Of Contract topic
Tender - Preparation topic
Tender - Assessment topic
Limiting/Excluding Liability For Risks topic
Commercial Risk topic
Indemnity Against Risks topic
Insurance Against Risks topic
Claims topic
