Contractor Warranty 2026: A Guide to Choosing a Reputable Contractor & Legal Rights

Material	Manufacturer Warranty Scope	Contractor Warranty Scope
Roofing (tiles/sheet metal)	Material quality	Installation and construction
Wall paint	Color durability, peeling	Painting workmanship
Tiles	Tile quality	Tiling and adhesive installation

Criteria	Workmanship	Materials	Systems
Scope	Construction work	Materials + installation	Complete systems
Duration	12–36 months	Depends on material type	12 months or more
Responsibility	100% contractor	Contractor + manufacturer	Contractor + manufacturer
Cost	Free of charge	Free of charge	May incur additional fees

	Warranty	Maintenance
Purpose	Repair defects due to construction/materials	Maintain normal operation
Cost	Free (per contract)	Paid by project owner
Duration	Within warranty period	Entire project lifecycle
Example	Repair wall cracks caused by faulty construction	Repainting walls after many years

Legal Regulations on Warranties in Vietnam [Updated 2026]

Warranty Periods under Decree 06/2021

MINIMUM WARRANTY DURATION REQUIREMENTS:

Projects using state capital:

• Special-grade and Grade I projects: 24 months (from the date of acceptance)

• Grade II, III, and IV projects: 12 months

• Technological equipment: According to the manufacturer’s warranty period; contracts must not specify a shorter duration than this period
  (In practice, most equipment carries a warranty of 12 months or more)

The warranty duration for individual work items (roofing, walls, floors, electrical and plumbing systems, finishes, etc.) is agreed upon by the parties in the contract. However, market practice typically ranges from 12–24 months.

Privately funded projects:

For projects using private capital, the warranty period is determined by contractual agreement. Nevertheless, it is strongly recommended to reference the state-capital framework to ensure adequate protection of the project owner’s interests. Importantly, the warranty duration should not fall below commonly accepted industry standards and professional norms.

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Mandatory Warranty Amounts

WARRANTY SECURITY AMOUNTS

(under Decree 06/2021/NĐ-CP)

For projects using state capital (public investment or state capital outside public investment), the minimum warranty security amount prescribed by Decree 06/2021/NĐ-CP is:

• 3% of the contract value for special-grade and Grade I projects;

• 5% of the contract value for all other project grades.

For projects using other sources of capital, the warranty amount is agreed upon by the parties and may reference the 3–5% framework above.

For private projects:

The warranty amount is determined by contractual agreement; however, referencing this framework is advisable to better protect the project owner.

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Forms of Warranty Security

Cash retention (most common)

• Advantages: Simple and easy to control

• Disadvantages: Impacts the contractor’s cash flow

Bank guarantee

• Advantages: Contractor capital is not tied up

• Disadvantages: Bank guarantee fees apply

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Comparison with International Practices

Vietnam’s regulations prescribe relatively long warranty periods compared to many other countries. Developed countries typically apply shorter warranty periods (often 12 months) but provide longer statutes of repose or limitation periods for legal claims.

Selected international references:

• United States: Standard 1-year warranty; statute of repose ranges from 4–12 years depending on state

• Australia: Warranty period of 6–12 months; limitation period of 6–7 years

• United Kingdom: 12 months Defects Liability Period; 6 years under the Limitation Act

• Singapore: 12-month warranty; 6-year limitation period

These figures are for reference only and may vary by jurisdiction, contract type (contract vs. deed), and regulatory period.

Assessment:
Vietnam offers longer warranty periods than international averages, reflecting stronger protection for project owners. However, long-term limitation rules remain less clearly defined, which is an important point to note.

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Contractor Warranty Claim Process [6 Steps]

A standard contractor warranty claim process consists of six steps, with timelines varying depending on complexity:

Detection → Notification → Inspection → Repair → Acceptance → Completion

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Step 1 — Detecting and Recording the Defect

Common signs requiring warranty service:

• Cracked walls, settled floors

• Roof or wall water leakage

• Electrical or plumbing equipment failure

• Abnormal paint peeling

Effective documentation methods:

• Take detailed photos/videos from multiple angles

• Clearly record the date of discovery

• Describe the location and severity of the defect

• Retain all related documents (contracts, acceptance records)

NOTE: Early detection leads to simpler handling and lower costs.

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Step 2 — Notifying the Contractor (CRITICAL)

Notification timeframe:

Notification periods typically range from 7–14 days under common contractual practice. If the contract does not specify a timeframe, a reasonable period based on actual circumstances applies. Late notification may allow the contractor to refuse warranty service on the grounds that the cause could not be determined in time.

Notification method:

📧 SAMPLE WARRANTY REQUEST LETTER

To: [Contractor name]
Project: [Project name]
Contract No.: [Contract number] dated [Signing date]

We have identified the following defects:

[Detailed description of the issue]
[Location]
[Date of discovery]

We kindly request that your company:

• Assign specialists to conduct an inspection within 7 days

• Propose a corrective solution

• Carry out repairs in accordance with the warranty commitment

Attachments: Supporting photos and videos

Sincerely,
[Project owner name]
[Date sent]

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Steps 3–6 — Inspection → Repair → Acceptance → Completion

PRACTICAL WORKFLOW:

STEP 3: INSPECTION

• Contractor assigns technicians to conduct an inspection

• Determine the cause: construction, materials, or usage

• Prepare an inspection report (signed by both parties)

• Propose repair methods and timelines

If the contractor does not respond:

• Send a second reminder letter (with confirmation)

• Consider using the retained warranty funds to hire a third party

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STEP 4: REPAIR EXECUTION

The execution timeline depends on the severity of the defect and work complexity. The contractor bears 100% of the cost if the defect falls within its responsibility. The project owner has the right to supervise and reject the work if quality standards are not met.

TIP: Require periodic progress reports to facilitate monitoring.

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STEP 5: ACCEPTANCE OF REPAIR RESULTS

• Inspect repair quality

• Ensure no adverse impact on other work items

• Prepare an acceptance record (signed by both parties)

• If unsatisfactory → request rework

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STEP 6: COMPLETION & CONFIRMATION

• Confirm warranty completion

• Archive all records (critical for future reference)

• Warranty for repaired items may be extended

How to Select a Reputable Contractor Based on Warranty Policy

10 Contractor Evaluation Criteria (Checklist)

CONTRACTOR EVALUATION CHECKLIST

LEGAL DOCUMENTATION

• Valid business registration

• Construction capability certificates

• Professional liability insurance

• Proper tax registration

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CLEAR WARRANTY POLICY

• Warranty duration ≥ statutory requirements

• Detailed warranty scope (itemized by work category)

• Simple and transparent warranty claim process

• Clearly committed response timelines

AVOID:

• Overly vague clauses such as “warranty by agreement”

• Warranty periods shorter than statutory requirements

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EXPERIENCE & TRACK RECORD

• Many years of industry operation

• Multiple completed similar projects

• Verifiable client references

• Few warranty-related disputes

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FINANCIAL CAPACITY

• Charter capital appropriate to project scale

• Transparent financial statements

• Ability to provide warranty security or guarantees

Why this matters:
Contractors with weak financial capacity may struggle to fulfill warranty obligations.

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DEDICATED WARRANTY TEAM

• Separate warranty service department

• Warranty hotline

• Fast response times

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MANAGEMENT TECHNOLOGY

• Warranty management system in place

• Online progress tracking

• Convenient defect reporting applications

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TRANSPARENT CONTRACT TERMS

• Detailed warranty clauses

• No hidden免责 clauses or liability exclusions

• Warranty acceptance record templates included

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CUSTOMER FEEDBACK

• Positive reviews from previous clients

• Real-world feedback on warranty service

• Client testimonials available

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CERTIFICATIONS & AWARDS

• ISO 9001 (Quality Management)

• Industry association memberships

• Recognized awards (if any)

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CONSULTATION ATTITUDE

• Clear explanation of warranty procedures

• Willingness to reasonably adjust terms

• No avoidance of questions

• Sharing past warranty-handling experience

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5 MUST-ASK QUESTIONS Before Signing the Contract

QUESTION 1:

“What is the SPECIFIC warranty duration for my project?”

• Good answer: Clear warranty periods stated for each work item

• Red flag: Vague answers without specific durations

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QUESTION 2:

“What is the warranty claim process?”

• Good answer: Clearly described steps with specific timelines

• Red flag: Overly complex procedures with excessive formalities

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QUESTION 3:

“How many warranty claims have you handled?”

• Good answer: Transparent, quantifiable data

• Red flag: Vague responses without concrete figures

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QUESTION 4:

“If your company encounters financial difficulty, does the warranty remain valid?”

• Good answer: Clear safeguards such as insurance or bank guarantees

• Red flag: No contingency measures

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QUESTION 5:

“May I contact some previous clients to ask about warranty service?”

• Good answer: Willing to provide references

• Red flag: Refusal or citing confidentiality without alternatives

Note: Warranty packages are internal company policies and are not statutory requirements.

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Handling Contractor Warranty Refusals [Legal Rights]

Cases Where Contractors ARE ALLOWED to Refuse

LEGITIMATE GROUNDS:

Design-related defects (not construction-related)
If the issue arises from design errors, the construction contractor is not responsible. Liability rests with the design consultant.

Improper use
If the project owner uses the building beyond its design load or original intended purpose, the contractor may lawfully refuse warranty service.

Force majeure
Events such as earthquakes, floods, or fires fall outside the contractor’s warranty obligations.

Third-party intervention
If the project owner engages another party to modify or intervene during the warranty period, the original contractor may refuse warranty service.

Warranty expiration
Once the contractual warranty period expires, the contractor is no longer obligated to provide free repairs.

Failure to perform periodic maintenance
If periodic maintenance is contractually required but not performed by the project owner, the contractor may refuse warranty service.

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Cases Where Contractors are NOT ALLOWED to Refuse

UNJUSTIFIED GROUNDS:

“Late notification”
If the contract does not specify a notification deadline, a reasonable timeframe under common practice applies.

“Lack of manpower”
Warranty obligations remain valid regardless of the contractor’s staffing situation.

“Manufacturer warranty has expired”

• If the defect is due to installation → contractor remains fully responsible

• If the defect is material-related and the manufacturer warranty has expired → resolve according to contract terms

“Repair cost is too high”
Financial reasons do not justify refusal when the defect falls within the contractor’s responsibility.

ACTION:
Resubmit the warranty request in writing with delivery confirmation. If refusal persists, proceed to dispute resolution steps.

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4 Effective Dispute Resolution Steps

🔧 STEP 1: DIRECT NEGOTIATION

Prepare the following:

• Original contract

• Acceptance records

• Photo/video evidence

• Previously sent warranty request letters

Meet directly with an authorized decision-maker to explain the issue, cite contractual clauses, and propose solutions. This is the most critical step and often resolves the majority of disputes.

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STEP 2: THIRD-PARTY MEDIATION

Mediation bodies include:

• Local Departments of Construction

• Commercial Mediation Centers

• Professional associations (if the contractor is a member)

Process:
Submit mediation request → Attend mediation session → Expert proposes resolution → Sign mediation record if agreed.

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STEP 3: ARBITRATION

Suitable when:

• Dispute value is high

• Fast resolution is required

• Confidentiality is desired

Costs include arbitration fees and legal fees if applicable.

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STEP 4: LITIGATION

The final option when all prior steps fail. Consider carefully:

• High costs

• Prolonged timelines

• Probability of success

NOTE: Legal consultation is strongly recommended before initiating litigation.

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Conclusion

Contractor warranties are not merely contractual clauses; they are a critical mechanism for protecting project owners’ rights. Understanding the three main warranty types (workmanship, materials, systems), mastering legal requirements on warranty duration and warranty security under Decree 06/2021/NĐ-CP, and knowing how to select reputable contractors will give you confidence in every investment decision.

Being familiar with the six-step warranty claim process and knowing how to respond when a contractor refuses warranty service enables proactive handling in all situations. Remember: early detection, timely notification, and thorough documentation are the keys to effectively safeguarding your interests.

Disclaimer: This article is for general reference only and does not replace case-specific legal advice.

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About VRenergy

VRenergy is a reputable solar EPC contractor in Vietnam with many years of experience delivering solar power projects for both residential and industrial clients. We are committed to transparent and clearly defined warranty policies in full compliance with Vietnamese regulations:

• Workmanship warranty: In accordance with Decree 06/2021/NĐ-CP

• Equipment warranty: Based on commitments from internationally recognized manufacturers

• Customer support: Dedicated technical teams ready to assist

• Warranty process: Simple, transparent, and fast

📞 Contact us for a free consultation
🌐 Learn more about our services