CALTRANS EXPERIENCE WITH WARRANTIES

WHY WARRANTY

The Right Strategy at the Right Time

•Shift Responsibility of Quality Control to Contractor

•State Responsibility to select good projects for warranty

•Failure Avoidance

Failure Avoidance

Repair work done by State Maintenance crews.

Severely Bleeding Pavement

Repair work done by State Maintenance crews.

Severely Bleeding Pavement

Repairs Done By the State after Contract Acceptance

• 20 projects in last 3 years failed to meet expectations

• Over $2.8 million in repairs by the state

• Pavement defects include chip seals and overlays

HISTORICAL PERSPECTIVE

• FIVE-YEAR WARRANTY REHAB PROJECT IN DISTRICT 2 (1993)

• THREE-YEAR WARRANTY REHAB PROJECT IN DISTRICT 11 (1994)

• SEVERAL FORM 42 MAINTENANCE PROJECTS (1998)

• 2 1/2-YEAR CAP-M WARRANTY PROJECT IN DISRICT 11 (1999)

HISTORICAL PERSPECTIVE

• TWO-YEAR WARRANTY MAINTENANCE PROJECT IN DISTRICT 2 (2001)

• ONE-YEAR WARRANTY MAINTENANCE PILOT PROGRAM (ON GOING)

• FIVE-YEAR WARRANTY REHABILITAION PILOT PROGRAM (ON GOING)

DISRICT 2 REHAB PROJECT

• Built in 1993• TWO INVOATIONS:

– Innovative SHRP Mix Design in One Direction– Reduced Thickness Design Over PCC

• Asphalt Rubber Hot Mix Gap Graded (RAC-G)• Five-Year Warranty• It is Now 5-Years after Warranty Period Expired • Performing Well• Mtce Cost Data is Limited to Minor Crack Seal• No Major Maintenance is Currently Planned

D2-Sha-5 (BUILT IN 1993)

ASPHALT RUBBER HOT MIX - GAP GRADED (RAC-G)

5 YEAR WARRANTY - 5 YEARS AFTER WARRANTY PERIOD

Sha-5-56.2/60.5

•• 1993 REHAB (Warranty)1993 REHAB (Warranty)

•• Maintenance Crack SealingMaintenance Crack Sealing

•• Road Currently in Good ConditionRoad Currently in Good Condition

Imperial-111-PM 38.0-40.8

(3 Year Warranty)

•Completed Construction 1994 (RAC Type-G)

•Awarded for $1.7 Million

•Preventive PME Chip Seal 2000

•Little or No Maintenance Costs prior to PM Chip

•Continuing to perform well

FORM 42 MAINTENANCE PROJECTS

•Several Projects By Emergency Contracts

– Built in 1998 •District 11 - AR Chip Seal (1 Year)•District 11 - AR Type G (2 Years)•District 11 - AR Type G (1 Year)• District 7 - AR Type G (1 Year)

– Performing Well

FORM-42 (2-yr Warranty)

San Diego-54-PM 14.8-16.1

Asphalt Rubber (Type G)

•Construction Completed 1998

•No Maintenance Cost to date

•Performing well

FORM-42 (1 year Warranty)

San Diego-94-PM 9.9-10.5

Asphalt Rubber (Type G)

•Construction Completed 1998

•No Maintenance Cost to date

•Little to no cracking present

•Good Candidate for addition PM Seal coat

FORM-42

Los Angeles-138-PM 0.0-2.6

Asphalt Rubber (Type-G)

•Project constructed in 1998•Continues to show excellent performance with little to no cracking

Form-42 (1-yr Warranty)

Imperial-78-PM 34.8-42.8

Asphalt Rubber Chip Seal

Form-42 (1-yr Warranty)

Imperial-78-PM 34.8-42.8

Asphalt Rubber Chip Seal

•Constructed in 1998•Note resistance to reflective cracking•Little to no cracking in the travelway.•Performing well

ONE-YEAR WARRANTY PILOT PROGRAM

• Purpose – Improve Quality of Surface Treatments

Without Significantly Increasing Initial Cost

– Shifting QC Responsibility to the Contractor

– Preventive Maintenance Projects

• Over 30 Projects are Planned• Warranty Pilot began 1998

ONE-YEAR WARRANTY PILOT PROGRAM

• Preventive Maintenance Strategies– Seals

• AR Chip Seal• Slurry & Microsurfacing• PME/PMA Chip Seal

– Overlays• Conventional AC – Dense Graded/Open

Graded/PBA• Rubberized AC – Open Graded/High Binder

– Experimental• Bonded Wearing Course/Various

ONE-YEAR WARRANTY PILOT PROGRAM

• Developed Specifications Jointly with Industry

• Preventative Maintenance Projects• Minimum Exclusions (Less than 15%)• Good Performance• No Claims

ONE-YEAR WARRANTY PILOT PROGRAM

• 6 Projects – Constructed & Out of Warranty Period

• 4 Projects – Constructed & Still in the Warranty Period

• 7 Projects – Bid & Pre-Construction Rating was Performed

• 7 Projects – Planned for 03/04 FY

ONE-YEAR PILOT PROJECT PROGRAM

• CONTINUOUS EVALUATION• FIELD PERFORMANCE• COST COMPARISON - WARRANTY PROJECTS VS.

NON-WARRANTY PROJECTS• COST DURING CONSTRUCTION - WARRANTY VS.

NON-WARRANTY• COST INCURRED BY CONSTRUCTION DURING

WARRANTY PERIOD• COST INCURRED BY MAINTENANCE DURING FIRST

YEAR AFTER CONSTRUCTION• COST PER LANE MILE - WARRANTY VS. NON-

WARRANTY

D6-Fre-5

OPEN GRADED ASPHALT RUBBER - HIG BINDERWarranty Started on 12/08/00

Lessons LearnedContractor Vs. Dept. of Transportation

SBD-5 [RAC High Binder (Type-O)]

• Quality Control (New Mix)– Numerous Trial Mix Designs – Aggregate Plant modified to keep up

with needed production– Temperature Sensitive and haul time

• Contractor Cost• increase material by $3.33 per ton• cost per lane mile $37,000/ln-MI

• Risks– State concurrence for exclusions– Mobilize Rubber plant for repairs– Possible demands for multi-repair

mobilization– Performance Measures– High Binder

• Transfer risk to contractor

• Select the right project to warranty

• Designers and Engineers need better understanding of specifications

• Exclusions shown on the plans

• Contractor and Engineer need more time to review project

• All projects need Pre and Post Evaluations

• Specs needed modification– rut depth specified

– exclusion from cracks

• Improved Materials and Workmanship– no claims and only minor repairs

Contractors State

D8- SBD Route 40

OPEN GRADED ASPHALT RUBBER - HIG BINDERWarranty Started on 7/19/01

Lessons LearnedContractor Vs. Dept. of Transportation

SBD- Route 40 [RAC High Binder (Type-O)]

• Request for exclusions

• Issues over the rut depth specified

• Contractor requested exclusion of all ruts. Average (rut depth 8-9mm)

• Issue with unknown stability of mix

• Existing pavement Crack issue• 30% of project was warranted

• Designers and Engineers need better understanding of specifications

• Exclusions shown on the plans• Contractor and Engineer need

more time to review project• All projects need Pre and Post

Evaluations• Specs needed modification

– rut depth specified

– exclusion from cracks

• 100% of project benefited from warranty

• No claims performing well.

Contractors State

ONE-YEAR PILOT PROJECT PROGRAM

– SOME FINDINGS:• PERFORMING WELL - NO WARRANTY

FAILURES • NO CLAIMS• COST INCREASE (4% TO 14%)• CONTRACTORS TOOK EXTRA EFFORT• NO PROBLEMS ENCOUNTERED WITH THE

SPECIFICATION

ONE-YEAR PILOT PROJECT PROGRAM

– SOME FINDINGS:• PERFORMING WELL - NO WARRANTY

FAILURES • NO CLAIMS• COST INCREDASE (4% TO 14%)• CONTRACTORS TOOK EXTRA EFFORT• NO PROBLEMS ENCOUNTERED WITH THE

SPECIFICATION

Contract Items for Preparatory Work

• Need good up-front engineering– Good strategies– Good estimates

• Need pay items– Dig outs– Grinding– Etc.

• Excluded work and work limits must be clear

Performance is a Department Goal

• Warranties require performance specifications– Means and methods specifications and

warranties aren’t compatible– “As directed by the Engineer” is out– “As needed to guarantee the work” is in

Quality Control is the Contractor’s Business

• Cultural shift for contractor and State• Contractors decide the outcome

– Chip seal spread rate– Atmospheric temperature during placement– Smoothness– Etc.

• How much control is needed to meet minimum quality for warranty period?

Work Completion/Warranty Switchover

• Need process to switch from completed work to warranty period– Performance bond to warranty bond– Construction to monitoring– Similar to plant establishment period?

Performance vs. Warranty Bonds

• AB 1745 Public contracts: bonds. – Would require a state department to

provide the contractor the option of either submitting a separate warranty bond to the department upon completion of the work or permitting the department to retain the contractor's performance and payment bonds until the end of the warranty period.

Who decides if warranty repair work is needed?

• Resident Engineer (RE)– REs continue to be the State’s

Representative during warranty period.– REs move on to other contracts

• Maintenance Supervisor?– Drive the roadway every day– Vested interest– Knowledgeable

FIVE-YEAR WARRANTY PILOT PROGRAM

• REHABILITAITON PROJECTS (10-YR DESIGN LIFE)• MINIMUM 15% ASPHALT RUBBER• THE SPEC IS OPEN TO ALL PROCESSES• FIVE PROJECTS• ONE PROJECT CONSTRUCTED IN D-7 ON ROUTE

150• FOUR PROJECTS WILL BE CONSTRUCTED IN 03/04

– D2 - Route 395– D6 - Route 33– D10 - Route 140– D11 - Route 75

How to get quality product by low bid?

• Improve up front engineering• Performance specifications• Warranty• Contractor’s prepare and follow

quality control plan

ALTERNATIVE ACCEPTANCE

DISTRICT 11 CAP-M PROJECT• Built in 1999 on ROUTE 8 - IMPERIAL COUNTY• CAP-M (5-YEAR DESIGN LIFE)• ASPHALT RUBBER HOT MIX - GAP GRADED

(RAC-G)• IT WAS NOT BID AS A WARRANTY PROJECT• CONTRACTOR FAILED COMPACTION• 2 1/2 WARRANTY PERIOD• CONTRACTOR CHOSE TO WARRANTY

PAVEMENT INSTEAD OF PAYING PENALTY• IT WILL BE OUT OF WARRANTY IN OCT 2003• performing Well

SUMMARY

• LIMITED EXPERIENCE WITH WARRANTIES• LIMITED NUMBER OF PROJECTS• REHAB AND MAINTENANCE PROJECTS• EXPERIMENTAL AND INNOVATIVE PROJECTS• TO ENSURE AGAINST FAILURE WHEN SPECS

ARE NOT MET DURING CONSTRUCTION• TO TRY A NEW REPAIR STRATEGY • TWO PILOT PROGRAMS:

– ONE-YEAR WARANTY ON PREVENTIVE MAINTENANCE PROJECTS

– 5-YEAR WARRANY ON RAC-G REHABILITATION PROJECTS