Book Description

The implementation of warranty provisions in construction contracts is considered an innovative contracting practice that is used by many highway agencies including the Ohio Department of Transportation (ODOT). The major underlying benefits of warranty provisions from the perspective of state DOTs include increased quality of the products, lower maintenance and project life-cycle costs, protection against early project failures, and reduction in site inspection. However, there are several problems that arise from the use of warranty provisions such as an increase in the initial bid price as compared to similar but non-warranty projects, a reduction in the number of small contractors bidding on these projects, the unwillingness of surety companies to issue long term bonds, and the possible increase in contract disputes and litigation.