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Innovative Contracting - Warranties
Description, benefits and drawbacks of warranties;  includes specifications, guidelines and warranty projects

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Specifications & Guidelines

Sample 2-year Bit

Sample Route & Seal

Sample Grading Warranty

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Warranty projects

Innovative Contracting

Guidelines

Report 2000-2005

 

Warranties

Description
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. 

Benefits

  • 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

Drawbacks

  • 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

Experience from other states

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.

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