LegalAI[Space]

Construction · Construction fee-earner, funder's counsel, developer client

Check collateral warranties and third party rights

A funder is taking security over a completed development and wants to know whether it has a route of recourse against the design team. The review maps every warranty and third party right in the package and shows where the chain breaks.

First draft
A rights map across the whole package comes back from one grid run before the funding drawdown.

The problem

Warranty packages are assembled over years by different people and nobody holds the complete picture. A subcontractor who designed the cladding may have given a warranty to the developer and not to the funder, a net contribution clause can cut recovery to a fraction, and a step-in right that requires the beneficiary to assume all obligations is not always the protection it looks like.
  1. Step 01 of 05

    Load the package

    The building contract, the consultant appointments, every executed collateral warranty and the funding agreement go on one matter.

    Matters · Project Halcyon · SPA warranties and disclosureOpen

    Project Halcyon: SPA warranties and disclosure

    Buy-side warranty review, disclosure analysis and cited due-diligence grid.

    Client
    Halcyon Bidco Ltd
    Reference
    WC-2026-0412
    Practice area
    Corporate / M&A
    Jurisdiction
    England and Wales
    Responsible partner
    E. Vance
    No conflict check on file.

    Chat, on this matter

    Compare warranties with the disclosure letter.

    Three high-priority exceptions require action: the unregistered charge, the change-of-control right and the tribunal claim.

    Send a message… (@ to mention tools)BalancedPrepare for
    1. 25 Aug

      Disclosure exceptions matrix

      Chat

    2. 21 Aug

      Disclosure exceptions matrix

      Run · completed · 560 credits

    3. 18 Aug

      Project Halcyon: Disclosure Letter

      Document · indexed

    4. 16 Aug

      Project Halcyon: Share Purchase Agreement

      Document · indexed

    5. 4 Aug

      Matter opened

      Opened

  2. Step 02 of 05

    Build the rights columns

    Columns cover the warrantor, the beneficiary, the standard of care, net contribution, step-in, assignment limits and the limitation period on the face of the document.

    Document Review · Hartwell matter · contract screen0/12 filled
    DocumentParties and effective dateTEXTTerm and renewalTEXTLimitation of liabilityTEXTGoverning lawTEXT
    nda-hartwell-meridian.txt
    saas-agreement-northgate.txt
    board-minutes-hartwell.txt
  3. Step 03 of 05

    Run the package

    Every document is answered against every column, with the quoted clause behind each cell, and the parties who gave no warranty at all identified from the contract chain.

    Document Review · Hartwell matter · contract screen0/12 filled
    DocumentParties and effective dateTEXTTerm and renewalTEXTLimitation of liabilityTEXTGoverning lawTEXT
    nda-hartwell-meridian.txt
    saas-agreement-northgate.txt
    board-minutes-hartwell.txt
  4. Step 04 of 05

    Read the breaks in the chain

    The cladding subcontractor warranted to the developer only, and two consultant warranties limit assignment to a single transfer that has already been used.

    Document Review · Hartwell matter · contract screen0/12 filled
    DocumentParties and effective dateTEXTTerm and renewalTEXTLimitation of liabilityTEXTGoverning lawTEXT
    nda-hartwell-meridian.txt
    saas-agreement-northgate.txt
    board-minutes-hartwell.txt
  5. Step 05 of 05

    Take the pre-drawdown list

    Action items cover the warranties to obtain, the consents to request for a further assignment and the net contribution clauses to price into the funder's view.

    Agents · Contract Agent · Employment Contract Compliance ReviewCompleted
    • Replace the UK/Ireland/EU non-compete with a 3 to 6 month restriction tied to competing corporate-law work.

    • Replace blanket data consent with a lawful-basis clause and a separate monitoring notice.

    • Remove the five-day carry-over cap and reference the statutory carry-over rules.

    • Narrow the client non-solicit to clients dealt with in the final 12 months.

    • Add an explicit working-time opt-out withdrawal mechanism.

    • Confirm the bonus clause states the discretion is exercised in good faith.

What comes back

A document, not a transcript.

  • A rights map showing who has recourse against whom across the whole package.
  • The two breaks in the chain, including the subcontractor warranty that never reached the funder.
  • Assignment limits identified where a permitted transfer has already been used up.
  • A pre-drawdown list of warranties to obtain and consents to request.

Authorities it checks

  • Contracts (Rights of Third Parties) Act 1999
  • Defective Premises Act 1972, s 1
  • Building Safety Act 2022, s 135
Every source it may cite

What it does not do

  • It does not obtain missing warranties or approach the consultants and subcontractors.
  • It does not value the recovery a net contribution clause would leave; it identifies the clause and its effect.
  • It reports the limitation period on the face of each document and does not decide when a cause of action accrued.

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