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MICHIGAN EXPERIENCE WITH WARRANTY WORK

MICHIGAN EXPERIENCE WITH WARRANTY WORK. Warranty Program History Why Warranties ? Warranty Specifications Experience & Lessons Learned. Risk Transfer. Pavement Warranty Summary (1996 – 2002). 473 = Capital Preventive Maintenance (CPM)

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MICHIGAN EXPERIENCE WITH WARRANTY WORK

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

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

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

  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

  30. Flushing

  31. Rutting

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

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

  34. 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

  35. 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

  36. THE NEXT STEPS

  37. NATIONAL CENTERforPAVEMENT PRESERVATION

  38. National Center for Pavement Preservation

  39. National Center for Pavement PreservationEngineering Research Bldg2857 West Jolly Road Okemos, MI 48864Telephone (517) 432-8220 Foundation for Pavement Preservation

  40. The Objectives- • Outreach • Education • Research - in Pavement Preservation

  41. Research • Facilitate Applied Research Projects. • Oversee Pooled Fund Studies. • Serve as a Partner in National Research Studies.

  42. 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.

  43. 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.

  44. 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.

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

  46. The End

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