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CALTRANS EXPERIENCE WITH WARRANTIES. WHY WARRANTY The Right Strategy at the Right Time Shift Responsibility of Quality Control to Contractor State Responsibility.

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Presentation on theme: "CALTRANS EXPERIENCE WITH WARRANTIES. WHY WARRANTY The Right Strategy at the Right Time Shift Responsibility of Quality Control to Contractor State Responsibility."— Presentation transcript:

1 CALTRANS EXPERIENCE WITH WARRANTIES

2 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

3 Repair work done by State Maintenance crews. Severely Bleeding Pavement Repair work done by State Maintenance crews. Severely Bleeding Pavement

4 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

5 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)

6 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)

7 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

8 D2-Sha-5 (BUILT IN 1993) ASPHALT RUBBER HOT MIX - GAP GRADED (RAC-G) 5 YEAR WARRANTY - 5 YEARS AFTER WARRANTY PERIOD

9 Imperial-111-PM (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

10 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

11 FORM-42 (2-yr Warranty) San Diego-54-PM Asphalt Rubber (Type G) Construction Completed 1998 No Maintenance Cost to date Performing well

12 FORM-42 (1 year Warranty) San Diego-94-PM Asphalt Rubber (Type G) Construction Completed 1998 No Maintenance Cost to date Little to no cracking present Good Candidate for addition PM Seal coat

13 FORM-42 Los Angeles-138-PM Asphalt Rubber (Type-G) Project constructed in 1998 Continues to show excellent performance with little to no cracking

14 Form-42 (1-yr Warranty) Imperial-78-PM Asphalt Rubber Chip Seal

15 Form-42 (1-yr Warranty) Imperial-78-PM Asphalt Rubber Chip Seal Constructed in 1998 Note resistance to reflective cracking Little to no cracking in the travelway. Performing well

16 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

17 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

18 ONE-YEAR WARRANTY PILOT PROGRAM Developed Specifications Jointly with Industry Preventative Maintenance Projects Minimum Exclusions (Less than 15%) Good Performance No Claims

19 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

20 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

21 D6-Fre-5 OPEN GRADED ASPHALT RUBBER - HIG BINDER Warranty Started on 12/08/00

22 Lessons Learned Contractor 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 ContractorsState

23 D8- SBD Route 40 OPEN GRADED ASPHALT RUBBER - HIG BINDER Warranty Started on 7/19/01

24 Lessons Learned Contractor 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. ContractorsState

25 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

26 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

27 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

28 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

29 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?

30 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?

31 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.

32 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

33 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

34 How to get quality product by low bid? Improve up front engineering Performance specifications Warranty Contractor’s prepare and follow quality control plan

35 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

36 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


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