What is Warranty Period?

    Updated: 28 March 2026

    A warranty period is the period after delivery or completion during which the supplier is obliged to repair defects at no cost. The period starts at the moment of acceptance or completion and ends on the date specified in the contract. During the warranty period, the supplier bears the risk for hidden defects. After expiry, the burden of proof and the cost of repairs shift to the buyer.

    How does warranty period work?

    The warranty period is one of the most important protective mechanisms for the buyer in a contract. Without specific warranty agreements, the statutory framework of non-conformity applies, but that offers less clarity than an explicitly agreed warranty period with concrete conditions.

    The length of warranty periods varies significantly by sector and type of product or service. In the IT sector, a warranty of 3 to 12 months on custom software is common. In construction, standard-form contracts provide a maintenance period of 30 days after completion, but the hidden defects provision runs for 5 years after completion. For machinery and installations, a warranty period of 12 to 24 months is standard.

    What the warranty covers is important. A warranty on an installation worth EUR 75,000 may be limited to material defects (the supplier replaces faulty parts) or may also cover labour, travel costs, and consequential damages. The broader the coverage, the better your protection as a buyer.

    In practice, the transfer of warranty rights is a point of attention. If you purchase a commercial property with a recently replaced heating system, you want the installer's warranty to transfer with the sale. This requires a written transfer or a clause in the original contract that permits assignment of warranty rights.

    The warranty period is separate from the statutory limitation period. Even after the warranty period expires, you may still be able to claim non-conformity under certain circumstances, but the burden of proof then falls on you.

    Why does this matter for SMBs?

    Warranty periods that are not actively monitored expire unnoticed. Loio (2026) reports that 71 percent of contracts are not monitored for compliance after signing. This applies to warranty provisions as well: if you do not track when a warranty expires, you may report a defect too late and lose your right to free repair.

    For SMBs with capital-intensive investments in machinery, software, or property, monitoring warranty periods is directly financially relevant. A defect in a EUR 60,000 installation reported one month too late can cost thousands in repair expenses that the supplier would otherwise have been obliged to cover.

    How to manage this correctly

    • 1Explicitly record the warranty period, coverage (materials, labour, travel costs), and the defect reporting procedure in the contract
    • 2Register the start and end date of each warranty period in your contract management system and set reminders at 90 and 30 days before expiry
    • 3Document defects in writing with photos and a description, and report them immediately to the supplier with a reference to the warranty clause
    • 4When purchasing second-hand equipment, check whether the original manufacturer warranty is transferable
    • 5Pair the warranty period with a maintenance contract that starts when the warranty expires

    Related research

    SME Contract Management Statistics (2026): 28 Data Points on Cost Savings, Risk & AI Adoption

    Sources

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