Here are some questions to ask yourself to see if you can benefit from the PWC program:
- Do you provide a written warranty on your homes?
- If not, how do you define and limit your warranty responsibilities to the customer?
- Does your warranty include a detailed set of construction standards?
- If not, who will determine the standards?
- Have you ever had to deal with frivolous customer complaints?
- Who hasn’t! But you can reduce the likelihood of it happening.
- Have you ever been threatened or sued by a buyer over alleged construction defects?
- There may have been a way to avoid this.
- How do you resolve warranty disagreements?
- There is a way to reduce the prospect of litigation.
- Do you set aside funds for the repair of construction defects?
- Most states hold the builder responsible for structural problems years after the sale.
- Do you currently purchase an insured warranty for each new home you build?
- If so:
Is your insurer highly rated by any of the independent rating services?
Do you pay an annual renewal fee to your insured warranty program?
Does your warranty program charge you for the full cost of arbitrations?
Does your program have any provisions for your legal defense?
Do you use your warranty program affiliation as a sales tool?