1. MICHIGAN EXPERIENCE WITH WARRANTY WORK

2. Warranty Program History Why Warranties ? Warranty Specifications Experience & Lessons Learned

3. Risk Transfer

4. Pavement Warranty Summary (1996 – 2002) 473 = Capital Preventive Maintenance (CPM) 131 = Rehabilitation & Reconstruction (R&R)

5. Warranty Contracts

6. 2002 Warranties Over 90% of CPM Program Over 50% of R&R Program

7. Warranty Duration 2 or 3 Years (CPM) 5 Years (R&R)

8. 2-Year CPM Warranty Chip seals Micro-Surfacing Crack Treatment Concrete Joint Resealing

9. 3-Year CPM Warranty Non-Structural HMA Overlays Cold Mill and HMA Resurfacing Hot In-place HMA Recycling Concrete Pavement Repairs

10. 5-Year Rehab Warranty Multiple Course HMA Overlays on - Rubblized Concrete Repaired HMA or Concrete Crush & Shape Base

11. 5-Year New & Reconstruct Warranty HMA Pavements Concrete Pavements

12. Why Warranties ? Quality Control (QC) Transferred to Contractors Agency Staff Reduction National Initiative from Method Specifications to Performance Specifications

13. Contractor Responsibility for Materials and Workmanship Impacts Pavement Performance

14. Contractor Benefits Encourages Contractor Innovation Enhances Contractor Knowledge About the Product

15. Agency Benefits Increased Pavement Performance Reduced Pavement Life Cycle Cost

16. Project Life Cycle Cost

17. Pavement Remaining Life Categories Percent of Network Pavement (0-2)(3-7)(8-12)(13-17)(18-22)(23-27) 19% 10% 40% 8% 6% 17% Current Condition (Years)

18. Yearly Distribution Pavement Remaining Life Categories Percent of Network Pavement (3-7)(8-12)(13-17)(18-22)(23-27) (Years) (0-2) 1 3 8 13 18 23

19. Ideal Condition Pavement Remaining Life Categories Percent of Network Pavement (0-2)(3-7)(8-12)(13-17)(18-22)(23-27) (Years) 11% 17% 20% 18% 16%

20. Warranty Specifications

21. Quality Data Specification Development Project Monitoring

22. Spec Development Process Performance Measures Must Be Linked to Warranty Length Performance Thresholds Must Be Based on Actual Pavements Contractor is Involved as Partner

23. Warranty Spec Components Initial Acceptance Warranty Bond Rights and Responsibilities Performance Thresholds Corrective Action Conflict Resolution Process

24. Initial Acceptance Form Signed by Department and Contractor Acceptance Date of Construction Linked to “Open to Traffic” Linked to Pavement Acceptance Starts Warranty Period

25. Bond CPM 100% of the warranted work R&R 5% of the contract amount or fixed $ amount

26. Rights and Responsibilities of the Department Approve Materials, Methods and Schedule for Corrective Work Perform Routine Maintenance Involve Third Party for Emergency Repairs Notify Contractor when Pavement Condition Exceeds the Performance Thresholds

27. Rights and Responsibilities of the Contractor Provide Written Work Plan for Corrective Action Follow Agency Permit Process Complete All Corrective Work Before Warranty Expires

28. Performance Thresholds Condition Parameters Segment Length Contractor Caused Condition

29. General Condition Parameters (Asphalt) Transverse Cracking Longitudinal Cracking/Open Joint De-Bonding Raveling Flushing Rutting Ride Quality

31. Flushing

32. Rutting

34. Conflict Resolution Process Five Member Team Two Department Two Contractor One Mutually Selected Never Invoked To Date

35. Warranty Call Backs CPM < 5% Repair Work Cash Settlement R&R < 2% Repair Work

36. Experience After 5 Years Reduced Agency Inspection Costs Unknown “Actual” Overhead Cost No Effect on Bid Costs Unknown Gains in Remaining Service Life Improved Workmanship with some Contractors Premature Distress not Eliminated Transfer of Risk is in Process

37. Lessons Learned Proper Project Scoping is Key Documentation Becomes More Important Need for Tougher Pre-Qualification Standards for Contractors Agency Responsibility has Shifted Some Contractors won’t Bid Warranty Work Warranties are here to stay

38. THE NEXT STEPS

39. NATIONAL CENTER for PAVEMENT PRESERVATION

40. National Center for Pavement Preservation

41. Foundation for Pavement Preservation Foundation for Pavement Preservation National Center for Pavement Preservation Engineering Research Bldg 2857 West Jolly Road Okemos, MI 48864 Telephone (517) 432-8220

42. The Objectives -  Outreach  Education  Research  Outreach  Education  Research - in Pavement Preservation

43.  Research Facilitate Applied Research Projects. Oversee Pooled Fund Studies. Serve as a Partner in National Research Studies. Facilitate Applied Research Projects. Oversee Pooled Fund Studies. Serve as a Partner in National Research Studies.

44.  Outreach Assist Highway Agencies with the Development of Specifications, Guidelines, and Project Selection. Integrate Pavement Preservation Activities with Pavement Management Systems. Provide Administrative Functions for the Midwestern Pavement Preservation Partnership. Assist Highway Agencies with the Development of Specifications, Guidelines, and Project Selection. Integrate Pavement Preservation Activities with Pavement Management Systems. Provide Administrative Functions for the Midwestern Pavement Preservation Partnership.

45.  Outreach Serve as a Consultant for Pavement Cost-Effectiveness Studies. Promote and Promulgate Pavement Preservation Principles at Conferences, Trade Shows, etc. Maintain a Technical Resource Library. Serve as a Consultant for Pavement Cost-Effectiveness Studies. Promote and Promulgate Pavement Preservation Principles at Conferences, Trade Shows, etc. Maintain a Technical Resource Library.

46.  Education Offer Continuing Education Units in Cooperation with MSU. Develop Courses in Cooperation with MSU. Meet Specific Client Training Needs with Custom-Design, On-Site Programs. Offer Continuing Education Units in Cooperation with MSU. Develop Courses in Cooperation with MSU. Meet Specific Client Training Needs with Custom-Design, On-Site Programs.

47.  Education Develop and Offer Center- Sponsored Training at MSU Develop Technical Briefings Host Web-Related, Pavement Preservation Information Develop and Offer Center- Sponsored Training at MSU Develop Technical Briefings Host Web-Related, Pavement Preservation Information