What is the warranty guarantee? Latest regulations

In the construction field, warranty plays a key role in minimizing damage to complex and high-risk projects. So warranty regulations, how is it presented specifically in Vietnam? Please continue reading SeABank's article to find the answer!

What is the warranty guarantee?

According to Article 335 of the 2015 Civil Code, a guarantee is a third party that commits to performing/not performing the agreed obligations. A warranty is a commitment by the manufacturer or seller to repair or replace free components for the product or part of the product when it is defective within the prescribed time period.

Warranty guarantee is a service for organizations that need banks to ensure the full implementation of responsibilities related to product quality issues of the organization according to signed commitments.

Warranty helps businesses limit risks for projects.

Provisions on warranty guarantees in construction contracts

Regulations related to warranty guarantees in construction contracts have been specifically presented in typical legal documents such as Decree No. 37/2015/ND-CP and Circular No. 09/2016/TT-BTC specifically as follows:

Warranty Guarantee Duty 

Decree No. 37/2015/ND-CP stipulates that the responsibility for warranty guarantee under specific construction contracts:

• Contractor's responsibility: Guarantee the construction and equipment as committed and agreed in the contract.
• Special and Grade I construction works and construction items have a minimum warranty period of 24 months.
• Construction works and construction items at the remaining levels have a minimum warranty period of 12 months.
• Residential buildings must be warranted for at least 5 years.
• During the warranty period: From the time of receiving the contractor's notice of the construction repair request, the contractor must carry out the repair or may hire a third party to carry out the repair within 21 days.
• If the construction work has defects or damage that are not the contractor's fault or due to force majeure, the contractor has the right to refuse the warranty.
• When the contractor has completed its warranty responsibilities and the warranty period has ended, it must report the completion of the warranty work in writing and then send it to the contracting party. At the same time, the contracting party must confirm in writing to the contractor.

Regulations on warranty guarantees are stated in legal documents. 

Warranty level

For construction contracts, the fee will range from 2% - 10% of the contract value. In some cases, to reduce risks, the contract guarantee value can be increased but not exceeding 30% of the contract value and must be agreed by the individual with the authority to decide on the investment.

The warranty guarantee level is detailed depending on the specific case:

• Construction works and construction items at special level and level I: Warranty guarantee fee is at least 3% of contract value.
• Construction works and construction items at other levels: Minimum fee is 5% of contract value.

When is the warranty period for new construction calculated from?

According to Clause 5 and Clause 6 of Article 28 of Decree 06/2021/ND-CP, the warranty period for construction items and new construction/renovation/upgrade works is calculated from the time the investor accepts the work according to regulations but must ensure:

• Minimum 24 months for construction works and construction items at special level and level I.
• Minimum 12 months for projects at other levels.

Warranty period is calculated from the date of project acceptance. 

Prestigious warranty service at Seabank

To minimize the potential damage to complex projects, businesses often use warranty guarantee services at banks. For this reason, SeABank always provides customers with the most prestigious and quality warranty guarantee products.

In particular, the warranty guarantee product package at SeABank has many outstanding features and is highly competitive in the market such as:

• Benefits: The registration process and procedures are simple and quick.
• Target users: Have the purpose of requesting legal guarantee, have full financial capacity to perform obligations guaranteed by SeABank and have the capacity to bear responsibility as prescribed by civil law.
• Enhance reputation: Enhance the reputation and reputation of the business in ensuring the quality of products and services for partners. Help optimize capital because partners do not retain payments to ensure product quality.
• Dedicated consulting service: SeABank has a team of experts with extensive experience in the financial field, always ready to support and answer all questions of businesses and advise on choosing the most suitable solutions according to customers' needs.

SeABank is proud to be a service provider service Warranty guaranteed by customers

The warranty guarantee process at SeABank is committed to providing customers with a convenient and quality service. Hopefully the article has provided all the useful information related to the topic.warranty regulations for readers. If you are looking for a reputable warranty package provider, please contact SeABank immediately via hotline 1900.599.952 for direct consultation.