What is Warranty Contracting?    

It is a contracting procedure that allows the owner to receive some verification of the services to be received.  In highway construction this allows for the warranty of the roadway, structure, or item of work over a specified period in which the owner has allocated.  The warranty is a guarantee of the integrity of a product and of the makers' responsibility for the repair or replacement of deficiencies.  It is an absolute liability on the part of the warrantor, and the contract is void unless it is strictly and literally performed.  It binds a party to the terms of the contract. 

 
 Why use Warranty Contracting?   

Less owner risk  
Creates an incentive for overall project quality  
Allows for a definite time establishment for the project life    

How Are Warranty Contracts Calculated?  

Warranty contracts are based on the amount of time an owner wants the work being done to last.  For instance, a warranty for a 
pavement overlay may be for one year, whereas, a warranty for the construction of a bridge may be twenty years.    

Criteria for Selection  

The project has a specified life expectancy. 
As a general rule, warranty provisions should be for specific construction products or features.  Warranty requirements should not 
be used to place an undue obligation on the contractor for items over which the contractor has no control.