Warranties require contractors to guarantee all or portions of a construction project to be free of defects in materials and workmanship for a period of time. Contractors must correct deficiencies that occur during the warranty period.
- Quality and durability of selected work items guaranteed for a specific time
- Longer timeframe for acceptance means agency can ensure contractor is performing high-quality work
- Decreased inspection level on warranty projects allows states to allocate resources elsewhere
- Owner must ensure that warranty guidelines are reasonable and enforceable
- Warranty may not be collectable if guidelines are too restrictive or place undue burden on contractor
- Requires additional staffing to monitor the warranty after construction
New Mexico 44 from Bernalillow to Bloomfield is a 20-year warranty, the first of its kind in the U.S. For a one-time fee of $62 million, the state estimates it will save taxpayers $89 million in maintenance costs.