A Warranty That Works

If a plumbing company across town offers an out-of-this-world warranty as part of its marketing strategy to attract new business, should you? Before trying to trump a competitor with a longer, more elaborate warranty, there are a few things to consider.

The Real Costs
Jim Criniti, general manager and president of Zoom Plumbing and Drain Services Inc. in Oreland, Pa., sees no problem with offering and marketing a super-sized warranty, if a company can afford to do so.

"If you've calculated your call back rates on a particular task, such as replacing a faucet—and it doesn't really cost you anything to increase the warranty—then I don't think it hurts profitability," Criniti says. "I just don't really know if many contractors take the time to do that."

To determine whether a more extensive warranty makes good business sense, invest in technology that tracks specific job tasks and offers the capability to run history reports on the number and nature of call backs.

The Task
Most plumbing warranties vary depending on the service. Criniti offers a six-month warranty on labor for a faucet or toilet replacement. Drain cleaning, however, comes with a 30-day warranty, and if the company runs a hand snake or uses a plunger to clear a toilet, the warranty is even shorter. "We offer a 24-hour warranty because someone could just ball up a whole bunch of paper and flush it two seconds after you walk out the door," he says. If a marketing campaign touts a six-month warranty for fixture replacement, make sure drain-cleaning clients are clear on how long they are covered.

Is It Necessary?
Despite the trend toward using warranties as part of a marketing strategy, many in the industry feel they are a non-issue for most consumers, who read the fine print on the invoice only after an issue arises. "I don't think it's a big factor [for homeowners]," Criniti says. "People still have a hard time getting someone to answer the phone, show up for the appointment and do a good job. [A warranty] is the icing on the cake, but it may not be the thing that sells it."

Whether a plumbing contractor views a warranty simply as a promise to stand behind products and services or as a marketing opportunity, there are several areas the agreement needs to address.

What a Warranty Does (and Does Not) Cover
Generally speaking, a warranty should specify that all work will be installed or applied in a "good and workmanlike manner equal to or greater than local industry standards" and that all materials or equipment will be installed according to the manufacturer's installation instructions, says Van White, a Portland, Ore.-based attorney who drafts construction agreements. "The warranties that should be assigned to the owner by the contractor are the manufacturer's warranties for the products and equipment provided and installed. Otherwise, the warranties for the work itself should have already been established in the agreement between the owner and contractor and do not need to be assigned," he says.

Because plumbing system abuse is prevalent, always add a provision that specifies that the warranty is only valid when the property is subject to normal use and care by the owner and has been properly maintained.

Define the Period of Coverage
More often than not, if a plumbing contractor markets the company's warranty, he is touting the longer timeframe. Unlike with new automobiles, there is no standard warranty in the plumbing industry. Gary Javore, a construction attorney from San Antonio, Texas, describes a basic warranty for repair work as 30 days. "Of course, the longer your timeframe the more risk you have of a claim," Javore says.

Spell Out How to Get Service
A plumbing contractor may want to require that any warranty requests be addressed in writing. Also include that the work must be completed during normal working hours. Further temper the warranty by specifying that it is only valid when the owner has fully complied with all terms, conditions and payment provisions of the contract.

Consider State Law
Plumbing contractors and their clients also need to know how their state laws affect warranties. While many states may not have specific statutory warranties for plumbing work, most states have them for the sale of goods. There also may be "implied warranties" such as unspoken, unwritten promises, created by state law, which go from the seller to the customer.

What to Leave Out
There are a few things that should be left out of every warranty. Vague, deceptive or misleading terms are a definite no-no. A contractor also should be careful that his warranty does not overstate the service that will actually be provided, White says. "His client deserves to get a warranty, and it's important for the owner to know it's there, but the contractor's company has to be physically capable of promptly addressing legitimate warranty issues that come up long after the contractor left the project," he says.