An Evaluation of the Cost-Effectiveness of Warranty Contracts in Indiana

An Evaluation of the Cost-Effectiveness of Warranty Contracts in Indiana
Author: Priyanka Singh
Publisher:
Total Pages:
Release: 2005-02-01
Genre: Transportation
ISBN: 9781622602513

In a bid to ensure cost-effective highway construction practices, highway agencies constantly seek ways to accelerate project design and delivery through implementation of innovative contracting and procurement practices. The concept of warranties, which is one of such promising practices, involves a shift of the burden of construction quality control, product performance and product maintenance from the owner to the contractor. As such, warranty projects are expected to enhance product quality and service life, and ultimately, reduced life-cycle cost. The expected benefits of warranty projects, however, could be offset by their historically higher construction costs. It is therefore necessary to evaluate the costs and benefits of warranty contracts vis-à-vis traditional contracts so that the more cost-effective practice can be identified. The present study reviewed the state of warranty practice in highway pavement construction in Indiana and elsewhere, collects data on warranty and traditional contracts, and carried out statistical analyses to evaluate the relative costs, effectiveness and cost-effectiveness of these two alternative contracting practices. Effectiveness was measured in terms of average pavement condition and pavement service life, and costs were expressed in annualized costs per lane-mile. All costs were adjusted for inflation and economy of scale. The study confirmed that the warranty contracts generally have higher agency costs than traditional contracts, but produced pavements that were superior to their traditional counterparts in terms in average pavement condition (rutting, cracking and roughness) and service life. It was determined that the typical projected treatment life of warranty contract pavement was 25 years while similar traditional contract pavements had a service life of 15 years. The study results suggest that the superiority of warranty projects over traditional projects is more discernible when both cost and effectiveness are viewed over the entire life of the pavement treatment.

Warranties

Warranties
Author: James R. Brennan
Publisher: McGraw Hill Professional
Total Pages: 370
Release: 1994
Genre: Business & Economics
ISBN: 9780070075672

A comprehensive overview of the warranty process including warranty principles, types, requirements, analyses, negotiation and implementation. The book's focus is on warranty usage in the commercial and military sector with the goal of ensuring quality, failure-free repair product delivery. Performance guarentees are covered along with warranty legislation including: Federal Trade Commission Improvement Act; Uniform Commercial Code; and Military Weapon System Warranties.

The Evaluation of Warranty Provisions on ODOT Construction Projects

The Evaluation of Warranty Provisions on ODOT Construction Projects
Author:
Publisher:
Total Pages: 238
Release: 2003
Genre: Road construction contracts
ISBN:

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.

Warranty Cost Analysis

Warranty Cost Analysis
Author: Wallace Blischke
Publisher: CRC Press
Total Pages: 752
Release: 1993-09-17
Genre: Technology & Engineering
ISBN: 9780824789114

Considers cost and optimization problems from the manufacturer's and the buyer's points of view. The work discusses a variety of warranty policies and the mathematical models for the analysis of related engineering and management issues. All standard consumer product warranties are covered.

Guidelines for the Use of Pavement Warranties on Highway Construction Projects

Guidelines for the Use of Pavement Warranties on Highway Construction Projects
Author: Sidney Scott
Publisher: Transportation Research Board
Total Pages: 64
Release: 2011
Genre: Law
ISBN: 0309213304

TRB’s National Cooperative Highway Research Program (NCHRP) Report 699: Guidelines for the Use of Pavement Warranties on Highway Construction Projects is designed to help guide state departments of transportation (DOTs) in establishing pavement warranty programs.

Drafting Effective Contracts: A Practitioner's Guide, 3rd Edition

Drafting Effective Contracts: A Practitioner's Guide, 3rd Edition
Author: Dodd, Feldman, Nimmer
Publisher: Wolters Kluwer
Total Pages: 2300
Release: 2019-12-17
Genre: Law
ISBN: 1543812503

The professional's favored tool for over a decade, this backbone reference provides a comprehensive set of drafting elements that can be used from contract to contract. Move step-by-step through the contract-creation process --from conducting the initial client meeting to closing the deal, with detailed discussions of the eleven, essential drafting elements, parties, recitals, subject, consideration, warranties and representations, risk allocation, conditions, performance, dates and term, boilerplate, and signatures. A favorite reference tool for professional drafters for over a decade, Drafting Effective Contracts combines a clear analysis of how effective agreements are structured with a practical breakdown of the essential elements of any contract-- giving you the best way to draft contracts. This completely updated practical reference guide presents a consistent structural analysis and a comprehensive set of drafting elements that can be used from contract to contract. You are led step-by-step through the process by which contracts are created, given clear sample contract provisions, and offered direction around the obstacles that may be encountered in drafting agreements for goods and services, promissory notes, guaranties, and secured transactions. Drafting Effective Contracts provides a complete handbook for drafting legal agreements that work. For starters, you get a practical and comprehensive approach to the overall contract process--from conducting the initial client meeting to closing the deal. You'll find a detailed discussion of the 11 drafting elements that every contract may have: Parties Recitals Subject Consideration Warranties and Representations Risk Allocation Conditions Performance Dates and Term Boilerplate Signatures After you get a solid explanation of these essential elements and how they're assembled to create effective contracts, you get key strategies for negotiating the agreement and closing the deal. You get an overview of the legal concepts that underpin various types of agreements --such as promissory notes, guaranties, security agreements, and agreements for the sale of goods and services. Then you'll see how to apply the drafting elements to create the finished contract. You also get an array of sample agreements and contracts as well as statutory material. Only Drafting Effective Contracts combines the best benefits of a forms book and a treatise to give you the most complete tool for building effective legal agreements.

Evaluation of and Recommended Change to the Reliability Improvement Warranty (RIW) Guidelines

Evaluation of and Recommended Change to the Reliability Improvement Warranty (RIW) Guidelines
Author: Mark C. Jacobson
Publisher:
Total Pages: 101
Release: 1979
Genre:
ISBN:

The reliability improvement warranty is a relatively new acquisition technique in government contracting. To encourage effective use of the technique, HQ USAF Directorate of Procurement Policy (LGP) published the pamphlet entitled Interim Guidelines Reliability Improvement Warranty (RIW) in July, 1974. This pamphlet provided guidance in the areas of application criteria, funding, provisions, determination of cost effectiveness, and general implementation and administrative information. Since the guidelines had not been revised since publication, the researchers' objectives were to determine if the guidelines were adequate and to obtain recommendations for improving those guidelines, if necessary. To meet those objectives, 24 individuals knowledgeable in the area of RIW were interviewed. Their perceptions were gathered through ten scaled response questions that addressed main areas within the guidelines. The distribution of responses were tested via the Kolmogorov-Smirnov two sample test to determine the adequacy of the area. Interviewees also recommended changes to correct perceived problem areas via open ended response questions. The researchers concluded the guidelines were inadequate in a number of areas, e.g., evaluation of candidates, example clauses, administrative concerns and cost-benefit analysis among others. Suggestions for increased detail, more examples, deeper rationale and organization into a regulation were made. (Author).

Reshaping Markets

Reshaping Markets
Author: Bertram Lomfeld
Publisher: Cambridge University Press
Total Pages: 387
Release: 2016-04-15
Genre: Business & Economics
ISBN: 1107095905

Using an interdisciplinary approach, this book explains the role of private law in governing markets.