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Contractor glossary

Workmanship warranty

Updated

Definition

A workmanship warranty is your promise to fix, at no charge for a set period, problems caused by how you installed or did the work. It stands behind your labor; defects in the equipment or materials themselves fall under the manufacturer's warranty.

Also called: Labor warranty, Installation warranty

Two warranties on one job

Most installed work carries two separate promises, and customers rarely know which is which until something fails.

Your workmanship warranty Manufacturer's warranty
Who gives it You The company that made the product
What it covers Problems caused by your installation or repair Defects in the product itself, such as a failed compressor or a leaking tank
Terms Whatever you put in writing The maker's terms, which may require registration, correct installation or maintenance

The gap between them is where arguments start. A product warranty may cover a replacement part but not the labor to install it, or exclude failures caused by a bad install. Some manufacturers' extended warranties, offered through installers they certify, add labor or workmanship coverage; read those terms, since they decide which claims come back to you.

What to put in writing

Put the terms on the estimate the customer signs and repeat them on the final invoice:

  • Length and start date, such as two years from completion. If it starts only after final payment, say so.
  • What counts as a defect, in plain words for your trade: a roof leak traced to flashing or nailing, a refrigerant leak at a joint you brazed, a drip at a fitting you made.
  • Exclusions: storm or impact damage, other trades working on your installation, customer-supplied parts, misuse, missed maintenance.
  • What you'll do: inspect, then repair or redo the work, and whether you cover related damage such as a stained ceiling.
  • How to make a claim: who to contact and how fast you respond.
  • Whether it transfers to a new owner if the home sells.

Leaving it out doesn't make you safe: depending on your state, customers may still have rights under contract and consumer protection law. Have a lawyer review your wording once, then reuse it on every job.

Example: You replace a furnace and give a one-year labor warranty. Suppose the manufacturer covers parts for 10 years if the unit is registered. In month 18 the inducer motor fails. The maker supplies the motor, but your warranty has ended, so the two hours to swap it are billable. Had a loose wire from your install caused a no-heat call in month 6, that visit would have been yours to cover. Writing both warranties out up front prevents the argument. The numbers are made up for illustration.

It's a cost you can measure

Every warranty visit is a callback you pay for.

Example: Suppose you install 200 water heaters a year and 1 in 50 needs a free $150 return visit. That's $600 a year, or $3 per install to build into your price. The numbers are made up for illustration.

Track warranty calls by job, tech and product, and if the count climbs, look for the same skipped step, part or crew.

Common mistakes

  • Vague or blurred promises. "Lifetime" with no details, or a "10-year warranty" a homeowner reads as free fixes for a decade, invites arguments. State the years, and which warranty covers what.
  • Skipping registration. If a product warranty requires registration, register it or tell the customer in writing that it's on them, and keep the confirmation.
  • No install records. Photos, serial numbers and notes are how you tell a workmanship defect from storm damage or someone else's work.
  • Unlabeled goodwill. If you fix something free outside the warranty, call it goodwill so it doesn't become the new standard.

How it connects

A clear scope of work defines what you installed, and so what your warranty covers. The estimate shows the customer the terms before they agree, and a finished punch list gives the clock a clean start date. Ask your agent what your general liability insurance would pay if a defect in your work damaged the customer's property; the warranty repair itself is yours to carry.

Go deeper

Roofing guideHow to Write a Roofing EstimateWhat goes in a roofing estimate: squares with pitch and waste, line items adjusters expect, code items, decking allowances, photos, warranties and payment terms.HVAC guideHow to Write an HVAC EstimateHow to write HVAC repair estimates and replacement proposals: Manual J sizing, AHRI certificates, SEER2 ratings, line items, warranties and options.Plumbing guideHow to Invoice Plumbing JobsHow plumbers invoice service calls on site, after-hours work, flat-rate and hourly jobs, warranties, photos, progress billing and lien notices.Solar guideHow to Write a Solar ProposalBuild a solar proposal from 12 months of usage: production assumptions, equipment and warranties, price per watt, financing, incentives and honest savings.
CallbackA callback is a return visit to fix a problem with work you already finished, usually at no charge because something about the original job didn't hold up. Each one costs labor, drive time and often parts, plus the paying job that time slot could have held.Scope of workA scope of work is the written description of exactly what a job includes and what it excludes: the tasks, materials, quantities, locations and standards of finish. It's the part of an estimate or contract that defines what the price buys, so anything outside it needs a change order.EstimateAn estimate is a contractor's expected price for a job, based on the scope as it's understood before work starts. It tells the customer the price could change if the work turns out different, but whether it binds you depends on its wording, the customer's acceptance and your state's law.Punch listA punch list is the written list of small items still to finish or fix at the end of a job, such as touch-ups, missing trim or adjustments, that the contractor completes before the customer signs off on the work and pays the final balance.General liability insuranceGeneral liability insurance covers claims that your business injured someone who doesn't work for you or damaged their property, including the cost of defending the claim. It doesn't cover your own employees' injuries, your tools or vehicles, or redoing your own faulty work.

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