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Topics: Business Case, Consulting, Quality
What is the difference between Guarantee and Warranty, and as owner what is better to get?
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Difference between Guarantee and Warranty for products and services need to understand,


Also if owner / customer or his representative need to prefer one than the other
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A Guarantee is usually free and mostly given by a manufacturer for limited time on certain item while Warranty is like an insurance policy where you need to pay a premium, sometimes they call it also extended guarantee but it covers wider range of issues than a guarantee and acts like legal contract.

In terms of which one is preferable, it all depends on what coverage the owner is looking for and if this specific risk he is concerned about is covered under a guarantee or warranty. Usually for high risk projects, most of the time you go to a Warranty.
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Guarantee refers to the performance postsale . It means that the manufacturer stands behind the product like a guarantor to a loan. It is a formal promise, like a contract, that if the performance is below par, the goods will be repaired or replaced or the money refunded.

Warranty relates to the sale of goods and will say that it is of a particular standard. A warranty is a promise that refers to more tangible things, like parts of the product or machine. It promises that the motor in a juicer will function smoothly for a year or two. If it doesn't , the manufacturer will repair or replace the motor. Both relate to performance and, in a sense, overlap. To illustrate, a burglar alarm product that offers a facility to link your alarm to the police for a higher fee, is offering you a warranty. But there is no guarantee that the police will come!

Guarantee is preferable if it is clearly mentioned, like bank guarantee, guarantee of equipment during defect liability period in EPC projects .
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1 reply by Rami Kaibni
Jan 19, 2016 2:35 PM
Rami Kaibni
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@Pankaj: Actually, with all my respect to your opinion of course, I totally disagree with you this as I think they are completely the opposite than what you've mentioned.
Network:118484



Jan 19, 2016 1:10 PM
Replying to PANKAJ KUMAR JOSHI
...
Guarantee refers to the performance postsale . It means that the manufacturer stands behind the product like a guarantor to a loan. It is a formal promise, like a contract, that if the performance is below par, the goods will be repaired or replaced or the money refunded.

Warranty relates to the sale of goods and will say that it is of a particular standard. A warranty is a promise that refers to more tangible things, like parts of the product or machine. It promises that the motor in a juicer will function smoothly for a year or two. If it doesn't , the manufacturer will repair or replace the motor. Both relate to performance and, in a sense, overlap. To illustrate, a burglar alarm product that offers a facility to link your alarm to the police for a higher fee, is offering you a warranty. But there is no guarantee that the police will come!

Guarantee is preferable if it is clearly mentioned, like bank guarantee, guarantee of equipment during defect liability period in EPC projects .
@Pankaj: Actually, with all my respect to your opinion of course, I totally disagree with you this as I think they are completely the opposite than what you've mentioned.
Network:96089



guarantee
"a formal assurance that certain conditions will be fulfilled, especially that a product will be of a specified quality"

warranty
"a written guarantee promising to repair or replace an article if necessary within a specified period."

A warranty is a type of guarantee; not only does the seller promise its product will work (guarantee), but it's willing to fix it or replace it if it doesn't (warranty).
Network:7205



@ Rami : I think the Stephane has put the correct definition of guarantee and warranty. However I explain you the case when you buy a juicer from market manufacturer guarantee for the the product is an assurance given. But if he warranty motor in the juicer, it means written guarantee that the juicer motor will be replaced if any problem happens in stipulated period.

Normally in our EPC projects we have written guarantee which is considered as 100% replacement of any failed item.
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1 reply by Rami Kaibni
Jan 20, 2016 2:48 AM
Rami Kaibni
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@Pankaj: I totally understand this but the juicer example does not really exactly apply in real projects. What Stephane put is correct and this is the exact meaning but when you translate this into projects, sometimes you buy Insurance Warranty's for a example but you can't buy insurance guarantee. When it comes to projects, the specific meaning of Guarantee / Warranty take a little bit of a divergance. Refer to the below:

http://www.access-legal.co.uk/free-legal-g...tm#.Vp86e688Kh8

Moreover, I would like you to kindly highlight to me what is wrong, if any, with the explanation I put above. I would like to know for my own knowledge if I did oversee something. Thanks !
Network:118484



Jan 20, 2016 2:36 AM
Replying to PANKAJ KUMAR JOSHI
...
@ Rami : I think the Stephane has put the correct definition of guarantee and warranty. However I explain you the case when you buy a juicer from market manufacturer guarantee for the the product is an assurance given. But if he warranty motor in the juicer, it means written guarantee that the juicer motor will be replaced if any problem happens in stipulated period.

Normally in our EPC projects we have written guarantee which is considered as 100% replacement of any failed item.
@Pankaj: I totally understand this but the juicer example does not really exactly apply in real projects. What Stephane put is correct and this is the exact meaning but when you translate this into projects, sometimes you buy Insurance Warranty's for a example but you can't buy insurance guarantee. When it comes to projects, the specific meaning of Guarantee / Warranty take a little bit of a divergance. Refer to the below:

http://www.access-legal.co.uk/free-legal-g...tm#.Vp86e688Kh8

Moreover, I would like you to kindly highlight to me what is wrong, if any, with the explanation I put above. I would like to know for my own knowledge if I did oversee something. Thanks !
Network:7205



Warranties are specific in product. Earlier product manufacturer use to give guarantee which means a replacement of product if it some part is defective (in many case). Later they replace it with warranty which is specific. Insurance warranty is also one example you have put rightly, it will cover guarantee the things mentioned in agreement. But when you say guarantee it is mostly 100% for that item. Bank guarantee for performance of project is best example we can see, it is mostly unconditional else it will become warranty.

I am copying the example of motorbike from the link you sent for better understanding:

Most warranties will be specific to the item they are covering. For example, if you get new brakes on your motorbike, the work and materials may be guaranteed to work for a specified number of miles or a certain time period. If an item is 'sold as seen' it is unlikely to be covered by a warranty.
Not all warranties are the same and most will have limitations. These limitations may be in relation to time or use of the product. In addition, they may also only cover certain things, for example motorbike warranties for instance, may not include things like tyres or brakes. Most vehicle warranties do specify exactly which parts are covered.
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1 reply by Rami Kaibni
Jan 20, 2016 2:59 PM
Rami Kaibni
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I understand this fully and it is somehow right and it is in line with what I've mentioned so I believe we are on the same page here.
Network:118484



Jan 20, 2016 3:02 AM
Replying to PANKAJ KUMAR JOSHI
...
Warranties are specific in product. Earlier product manufacturer use to give guarantee which means a replacement of product if it some part is defective (in many case). Later they replace it with warranty which is specific. Insurance warranty is also one example you have put rightly, it will cover guarantee the things mentioned in agreement. But when you say guarantee it is mostly 100% for that item. Bank guarantee for performance of project is best example we can see, it is mostly unconditional else it will become warranty.

I am copying the example of motorbike from the link you sent for better understanding:

Most warranties will be specific to the item they are covering. For example, if you get new brakes on your motorbike, the work and materials may be guaranteed to work for a specified number of miles or a certain time period. If an item is 'sold as seen' it is unlikely to be covered by a warranty.
Not all warranties are the same and most will have limitations. These limitations may be in relation to time or use of the product. In addition, they may also only cover certain things, for example motorbike warranties for instance, may not include things like tyres or brakes. Most vehicle warranties do specify exactly which parts are covered.
I understand this fully and it is somehow right and it is in line with what I've mentioned so I believe we are on the same page here.
Network:83438



I am following the discussion nd agree with what has been said. Warranty is a kind of guarantee but then Guarantee alone without any commitment is just an assurance promise with no supporting action. The liability in case of pure guarantee is all on seller and it could be much beyond the confines of Warranty.

If I have a one year warranty on a project then I will fix anything (or whatever is mentioned in the warranty document) for that one year and will not be liable for anything more than that.

If there is a general Guarantee that this product will never fail, then all future liabilities will automatically become the responsibility of the seller. If ever the product fails, seller will not only repair, replace or mend it, but will also pay for accruing damages as claimed.

Warranty is limited, Guarantee is unlimited.

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