Understanding the Warranty Period

Most commercial construction contracts include a one-year limited warranty covering materials, workmanship, and select system performance. This period begins at substantial completion and is intended to give the owner time to operate the building, identify emerging issues, and document them for correction at the contractor’s expense.

However, identifying issues within that window requires intentional effort. Deferred maintenance, tenant activity, or early turnover to property management teams often means that smaller deficiencies go unnoticed until after the warranty expires—at which point remediation costs fall entirely on the owner.

Why a Warranty Inspection Is Essential

A formal warranty inspection is a structured review—typically led by an independent architect, engineer, or building consultant—that evaluates the property’s condition, systems performance, and any warranty-related concerns before the coverage period ends. Performing this inspection offers several key benefits:

Protects the Owner’s Investment

Construction warranties are contractual rights. Failing to identify and report issues before expiration effectively forfeits that value. A documented inspection ensures all observed defects are reported while the contractor is still responsible for correction—protecting ownership from future repair expenses.

Reveals Hidden or Latent Defects

Some issues only become apparent months after occupancy—such as HVAC imbalances, water intrusion, roof membrane failures, or façade leaks. A comprehensive inspection can uncover these emerging conditions through targeted testing, thermal imaging, or detailed systems review.

Validates Building Performance

Warranty inspections help verify that mechanical, electrical, and plumbing (MEP) systems are functioning as designed and that energy performance aligns with design intent. This is especially important for LEED-certified or energy-efficient properties, where underperformance can erode operating margins.

Creates Accountability and Documentation

The resulting warranty inspection report serves as a clear, timestamped record of building condition. It can be used to formally notify the contractor of deficiencies, support warranty claims, and provide documentation for insurers, lenders, and future buyers.

Improves Long-Term Maintenance Planning

A thorough inspection not only identifies warranty items but also highlights near-term maintenance needs beyond warranty coverage. Owners can use this insight to develop capital plans and preventive maintenance schedules, improving lifecycle performance.

Timing and Best Practices

The optimal time to perform a warranty inspection is two to three months before the expiration of the warranty period. This provides adequate time to document findings, issue notices, and coordinate repairs while the contractor remains contractually obligated.

Best practices include:

Engaging an independent building consultant or engineer, not just relying on the property manager or contractor.

Reviewing as-built drawings, commissioning reports, and O&M manuals for consistency with field conditions.

Including roofing, envelope, site drainage, MEP systems, fire/life safety systems, and common areas in the inspection scope.

Documenting all findings with photographs, locations, and clear repair recommendations.