Warranty Work
Definition
Warranty work is labor or parts replacement performed at no cost to the customer because the issue is covered under a prior repair, install, or manufacturer warranty.
What Warranty Work Means for Your Business
What it means
Warranty work is the work you already paid for once. Sometimes the shop eats the labor, sometimes the manufacturer reimburses for parts, and sometimes both.
Why it matters
Warranty work is unavoidable but dangerous. If you do not track it, it silently drags margin down. If you bill it badly, the manufacturer rejects your claims and you never get reimbursed.
How contractors use it
Shops log every warranty job separately in the system, attach the original work order, and file manufacturer claims promptly. Good software auto-flags work still under warranty when a customer books a new service call.
Real-World Example
An HVAC shop installed 420 new systems last year with 10-year parts warranties. They filed $38,000 in manufacturer warranty claims and got reimbursed $35,200, versus $8,500 the year before when they did not track it.
Related Terms
Callback
A callback is a return trip to a customer's location to fix work that was not completed correctly on a previous visit.
Work Order
A work order is the digital or paper document that authorizes and records the work performed on a specific service call.
First-Call Resolution
First-call resolution is the percentage of service calls that are fully fixed on the technician's first visit, with no return trip required.
Service Agreement
A service agreement is a written contract between a contractor and customer that defines the scope, price, and terms of ongoing service work.
Proof of Completion
Proof of completion is the documented evidence, usually photos, notes, and signatures, that confirms a service job was finished and delivered to the customer's satisfaction.
Put This Into Practice with Free Software
Kaldr Tech handles warranty work and everything else you need to run your shop. $0/month, 3.5% + 30¢ per transaction.