Oral guarantees made by the contractor are not considered warranties. 18.104.22.168 Types of Warranties Government warranty clauses provide for various types of warranties, which generally fall into the following categories: Failure-free or hardware warranty. The contractor accepts the responsibility to correct any failure or defect that occurs during a specific or measured amount of use or operation. For example, see FAR 52.246-17, Warranty of Supplies of a Noncomplex Nature. Correction of deficiencies warranty. The contractor agrees to correct any deficiency in design, material, or workmanship that becomes apparent during testing or early operation and that results in the specific items performing below the contract standard. For example, see FAR 52.246-19, Warranty of Systems and Equipment under Performance Specifications or Design Criteria. LESSON 3: MANAGING CONTRACT PERFORMANCE © Management Concepts. See inside front cover for additional information. 3-13
Supply warranty. The contractor is obligated to replace or reperform work on contract items if defects in material or workmanship are found to have existed at the time of acceptance. It is similar to a consumer warranty for commercial products. For example, see FAR 52.246-18, Warranty of Supplies of a Complex Nature. Service warranty. The contractor agrees to reperform defective services if defects in workmanship existed at the time of acceptance. It is similar to a repair warranty in a retail establishment. For example, see FAR 52.246-20, Warranty of Services. Construction. The contractor agrees to remedy any defect in equipment, material, design furnished, or workmanship performed. The warranty period is one year from the date of final acceptance (or from the date the government takes possession, if the government takes possession of any part of the work before final acceptance). For example, see FAR 52.246-21, Warranty of Construction. If warranties are included in a contract (except contracts for commercial items), all implied warranties of merchantability and fitness for a particular purpose are excluded by the use of specific language in the clause. 22.214.171.124 Warranties for Commercial Item Contracts Generally, the government receives at least the same warranty terms, including offers of extended warranties, offered to the general public in customary commercial practice. Warranties must be included in the contract by addendum. (FAR 12.404) Implied warranties exist for commercial item contracts. FAR 52.212-4, Contract Terms and Conditions — Commercial Items, ensures that the contractor will warrant and imply that items delivered under a contract are merchantable and fit for use for the particular purpose for which the government acquired them. If customary practice excludes or limits an implied warranty in the provisions of an express warranty, the contracting officer must ensure that the express warranty provides for the repair or replacement of defective items discovered within a reasonable period of time or acceptance. (FAR 12.404)
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- Fall '16