Long-Term Warranty Contracts - Risk or Reward?

Author(s)
Holt, A. & Hein, D.K.
Year
Abstract

Many agencies across North America are looking for new and innovative ways to deliver transportation projects. These include design/build, public/private/partnerships and long-term warranty contracts. Increasingly, these projects include a transfer of risk for the quality of the final product from the owner to the contactor. This is a logical progression in the as the contractor is typically in the best position to manage this risk. Long-term warranties are usually structured so that the contractor is responsible for the quality of the construction for an extended period in the order of 5 to 10 years. This is a substantial change for contractors who have in the past been typically used to warranties of only 1 to 2 years. This paper examines the risks and rewards of long-term warranty contracts from both the contractor and owner perspectives and provides recommendations for both sides to ensure that the process results in a cost-effective, high quality facility final product. For the covering abstract of this conference see ITRD number E216597.

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Publication

Library number
C 44405 (In: C 44349 CD-ROM) /10 / ITRD E217408
Source

In: Transportation: a key to a sustainable future : proceedings of the 2008 Annual Conference and Exhibition of the Transportation Association of Canada (TAC), Toronto, Ontario, from September 21 to 24, 2008, 10 p., 5 ref.

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This publication is one of our other publications, and part of our extensive collection of road safety literature, that also includes the SWOV publications.