WARRANTIES TO REWORK ROAD INDUSTRY

The European practice of requiring warranties for all road construction and paving projects, from federal interstate-type projects to state and local projects, is dicussed and compared with practice in the U.S. In Europe, warranties are accepted by the owner and the contractor as well as the insurer. They are typically 5 years in duration, and usually prorated and vigorously adhered to by contractors, insurers, and owners. Contractors in the U.S. have expressed willingness to extend their warranties but want to do their own quality control, want broad specifications, and require the state to restrict its quality assurance activity. All these requirements are fulfilled in Europe. More effective screening of bidders will be necessary to reduce the risk that owners will face in the new scenario.