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.
Samenvatting