Remedial Work Coverage
In some cases, you can run into project problems after the Wrap Up Liability has lapsed – this is where the Remedial Work Coverage extension comes into play. For example, a new condo unit owner reports that the hot and cold water faucets were installed in reverse order. The plumbing subcontractor returns to fix the problem and while welding the pipes, the drywall dust ignites and damages the tile work.
In this case, the Wrap Up Liability is no longer valid, but since the work is directly related to correcting deficiencies in the original project, Remedial Work Coverage would apply (within one year of the project completion).