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In the construction industry, insolvency poses significant risks, where seemingly ideal projects can swiftly turn problematic. Beneficiaries may find themselves without contractual connections to project stakeholders, highlighting the importance of collateral warranties. This video tutorial explores collateral warranties, defined by Hill Dickinson as contracts where a party involved in the construction assures a third-party beneficiary that it has met obligations under its aligned building contract, subcontract, or professional appointment. An example is presented involving a typical construction project with clients, main contractors, and subcontractors, illustrating when collateral warranties become necessary. Viewers are encouraged to like, subscribe, and activate notifications for weekly content.