Contract Warranties
Also known as: Warranty clause, warranty of supplies, warranty of construction
What you do here: Understand the warranty you're giving, price it, and flow matching warranties to your subs
At a Glance
- What it is
- A contractor's promise that the work conforms and is defect-free for a stated period after acceptance
- Common clauses
- FAR 52.246-17 (supplies), 52.246-18 (data), 52.246-19 (systems/equipment), 52.246-21 (construction)
- Governing authority
- FAR Subpart 46.7 (Warranties), prescribed at FAR 46.710
- The remedy it adds
- A right to repair, replacement, or correction after acceptance — beyond the latent-defect exceptions
- The cost side
- A warranty is a cost and a risk you carry after delivery — price it and flow it down to subs
What It Is
A warranty is a contractor's promise that its supplies or services will conform to the contract's requirements and remain free of defects for a defined period, and it gives the government a remedy if they don't. Warranties matter precisely because acceptance is otherwise conclusive: a warranty is one of the ways the government preserves a post-acceptance remedy beyond the narrow latent-defect / fraud / gross-mistake exceptions. FAR Subpart 46.7 governs the use of warranties and supplies the clauses — for example FAR 52.246-17 (Warranty of Supplies of a Noncomplex Nature), 52.246-18 (Warranty of Supplies of a Complex Nature), 52.246-19 (Warranty of Systems and Equipment Under Performance Specifications or Design Criteria), 52.246-20 (Warranty of Services), and 52.246-21 (Warranty of Construction). A typical warranty defines two things: the *scope* (what is promised — usually that the work conforms to the specs and is free from defects in material and workmanship) and the *duration* (how long the promise runs after acceptance or delivery). If a warranted defect appears within the period, the government can typically require the contractor to repair, replace, or correct it — or have it done and charge the contractor. FAR policy is that warranties should be used only when their benefit outweighs their cost, because a broader or longer warranty raises the contractor's price. Construction warranties (52.246-21) commonly run one year, and commercial-item contracts often rely on the contractor's standard commercial warranty (consistent with FAR 52.212-4). For the contractor, the warranty is a defined, post-delivery liability: you're on the hook to fix warranted defects for the whole period, so you need to know exactly what you promised.
When You See It
- When the contract includes a FAR Subpart 46.7 warranty clause (supplies, data, systems, services, or construction).
- When a warranted defect appears within the warranty period after acceptance or delivery.
- On construction contracts, which commonly carry a one-year warranty of construction (52.246-21).
- On commercial-item buys, where the contractor's standard commercial warranty often applies (with 52.212-4).
Key Features
| Feature | What It Means |
|---|---|
| A post-acceptance remedy | A warranty preserves a government remedy after acceptance, beyond the narrow latent-defect / fraud / gross-mistake exceptions. |
| Scope and duration | Every warranty defines what's promised (conformance, freedom from defects) and for how long after acceptance or delivery. |
| Repair, replace, or correct | If a warranted defect appears in the period, the government can require the contractor to fix it — or have it fixed and charge the contractor. |
| Used only when worth it | FAR policy limits warranties to situations where the benefit outweighs the added cost, because a warranty raises the price. |
| Commercial and construction variants | Commercial buys often rely on the contractor's standard commercial warranty; construction commonly carries a one-year warranty (52.246-21). |
The SDVOSB Angle
A warranty is a liability you carry on your books after the job is 'done,' so a small SDVOSB has to treat it as both a cost and a risk. Price it: a one-year construction warranty or a multi-year equipment warranty means you may be sending crews back at your expense long after you've booked the revenue, and that reserve belongs in your bid, not your surprise. Read the scope and duration precisely — a broad 'free from all defects' warranty is very different from 'defects in material and workmanship,' and the difference is real dollars. Most importantly, flow matching (or longer) warranties down to the subcontractors and suppliers who actually produced the work, so a warranty claim against you can be back-charged to the responsible party — otherwise a similarly situated sub's warranty defect becomes the prime's uncompensated repair. On commercial items, know which warranty governs (your standard commercial warranty vs. a FAR clause) so you're not promising more than you intended.
How to Handle It
- Identify the exact warranty clause and read its scope (what's promised) and duration (how long) before you bid.
- Price the warranty reserve into your proposal — future repair/replacement is a real, deferred cost.
- Flow matching or longer warranties down to subcontractors and suppliers who produced the warranted work.
- Track warranty periods and keep records, so you can tell a valid in-period claim from an out-of-period one.
- On commercial items, confirm whether your standard commercial warranty or a FAR warranty clause governs.
Watch Out For
- Bidding without a warranty reserve, so post-acceptance repairs come straight out of already-booked profit.
- Misreading warranty scope — 'free from all defects' is far broader than 'defects in material and workmanship.'
- Failing to flow warranties down, leaving the prime to absorb a sub's or supplier's warranty defect.
- Honoring an out-of-period or out-of-scope warranty demand you weren't actually obligated to cover.
Run the Numbers
Frequently Asked
What is a warranty on a federal contract?
A warranty is a contractor's promise that its supplies or services will conform to the contract's requirements and be free of defects for a defined period after acceptance or delivery. Governed by FAR Subpart 46.7, it's imposed through clauses such as FAR 52.246-17 (noncomplex supplies), 52.246-19 (systems and equipment), 52.246-20 (services), and 52.246-21 (construction). A warranty gives the government a post-acceptance remedy — repair, replacement, or correction — that goes beyond the narrow latent-defect, fraud, and gross-mistake exceptions.
How long is a federal construction warranty?
The standard Warranty of Construction clause, FAR 52.246-21, commonly provides a one-year warranty running from the date the government accepts the work (or a designated portion), during which the contractor must remedy defects in materials or workmanship and any failure to conform to the contract. Specific contracts can specify different or additional warranty periods for particular components. Because you may have to send crews back at your own expense within that period, the warranty cost belongs in your bid.
Does a warranty replace the government's inspection and acceptance rights?
No — it adds to them. The government still inspects before acceptance and can reject nonconforming work, and after acceptance it retains the latent-defect, fraud, and gross-mistake exceptions. A warranty is an additional, contract-specific promise that gives the government a further remedy for defects that appear within the warranty period. FAR policy is to use warranties only when the benefit outweighs the added cost, because a broader or longer warranty raises the contractor's price.
Primary Sources
- FAR Subpart 46.7 — Warranties
- FAR 52.246-21 — Warranty of Construction
- FAR 52.246-17 — Warranty of Supplies of a Noncomplex Nature
Plain-English reference, not legal advice. Quality, inspection, acceptance, and warranty rules are fact-specific, and the FAR and agency supplements are amended from time to time — always read the current FAR text, follow the inspection and acceptance requirements in your specific contract clauses, confirm the requirements with the contracting officer, and consult qualified counsel before relying on an inspection, acceptance, rejection, or warranty position.
Change log (1)
- LaunchedPublished the federal contract quality assurance, inspection & acceptance reference covering how the government checks, rejects, accepts, and warrants an SDVOSB's work on a set-aside — government contract quality assurance (FAR Part 46), the Inspection of Supplies (52.246-2), Services (52.246-4), and Construction (52.246-12) clauses, higher-level quality requirements / ISO 9001 & AS9100 (52.246-11), acceptance and its near-finality (FAR Subpart 46.5), the rejection and correction of nonconforming work (FAR 46.407), the latent-defect / fraud / gross-mistake exceptions to conclusive acceptance, and contract warranties (FAR Subpart 46.7 / 52.246-17 to -21) — each with an at-a-glance quick-facts card, a when-you-see-it list, a key-features table, an SDVOSB-specific angle, a how-to-handle-it checklist, watch-outs, FAQPage, Article, Dataset, and BreadcrumbList structured data, primary-source FAR citations, and cross-links into the glossary, regulation explainers, clauses, forms, contract types, payment methods, protest & dispute forums, how-to guides, FAQ, and the limitations-on-subcontracting and price-to-win calculators.