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Insolvency in the construction industry poses a significant risk, with projects that initially seem perfect turning into a perfect storm. Collateral warranties serve a crucial purpose in such situations, where the beneficiary of a construction project may be left without a contractual link to project stakeholders. Collateral warranties are contracts that ensure a party involved in the project has fulfilled its obligations under the building contract, subcontract, or professional appointment. In a typical construction project, collateral warranties are used to establish a connection between the client, main contractor, and subcontractors for added protection and assurance. Remember to like, subscribe, and hit the notification bell for new video updates every Wednesday.
