THE BEST PRACTICES OF WARRANTY SYSTEM: A REVIEW

Housing warranty is a system which provides protection to house buyers in the form of guarantee against defects, late delivery and project abandonment. Nowadays the application of warranty has become a necessity to many housing development projects throughout the world, not only to provide assurance to the customers but it is also used as a tool for marketing strategies. Realizing the need for housing sustainability by the public, the demands for housing warranty becomes more popular leading towards the implementation of various kinds of warranties and guarantees in order to suit with the types of housing development. However, a good warranty application could not be applied without some basis of good criteria. The aim of this paper is then to highlight the criteria of best practices in the general warranty system based on related literatures comprehensively while at the same time reviewing its application into various kinds of housing warranties which are available in the current market. By highlighting the best practices, a warranty can be designed in many ways to fit in with the objective and the target. Finally, it is hoped that this paper will conceptually provide some basis of reference or to become as a template especially for housing warranty to be more effective and practicable.