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savings in maintenance costs and life-cycle costs (including All interviewed firms believed in providing a quality pave-
road-user cost savings resulting from to reduced lane occu- ment marking job, and their comments supported the notion
pancy through the warranty period). Other benefits cited by that quality-oriented firms perform their projects to the same
individual agencies included the potential for greater con- high standards and levels of commitment regardless of whether
tractor innovation, the regarding of warranties as a logical or not the projects involve a warranty. Nonetheless, they
component of comprehensive departmental outsourcing, a believed that warranties helped impose a level playing field for
reduced administrative and staffing burden for the agency, an bidding among all participating contractors. The firms sup-
opportunity to generate pavement marking performance data ported warranties with strong but reasonable specifications
(which could also be used for product performance compar- that are dependably enforced for reasons of both quality of
isons), and a perceived positive effect of risk sharing. result and fair competition. This approach was believed to pro-
mote use of quality products and proper installation proce-
dures that yielded brighter, more durable, more consistently
REASONS FOR NOT USING WARRANTIES performing markings, with attendant benefits to the highway
agency and the traveling public. Materials manufacturers
Among the 25 agencies that do not now use warranties, 15
interpreted project quality in terms of their own ability to exer-
indicated no plans to implement such warranties in the fore-
cise appropriate management and control of the several facets
seeable future. The major impediments to pavement marking
of jobs they were involved in. They believed that one-source
warranty use reported by these agencies were the greater
accountability was the best approach to achieve project objec-
administrative burden in monitoring contractor compliance
tives, avoid finger-pointing, and yield the desired savings in
with specifications, potentially higher bid prices, and possible
life-cycle costs with benefits to agency and public. Several
increases in disputes or litigation with contractors. Other
firms saw warranties as a wave of the future and believed
drawbacks that were cited included administrative difficulties
strongly in their value and benefit, even though they entail
associated with using U.S. federal-aid funding on projects if
risks that will be discussed here.
sole-sourcing pavement marking work and keeping contracts
open on federal-aid projects while the warranty remains in
One firm had a somewhat different, but still supportive,
force. Three agencies cited an agency culture and practice that
view of warranties as but one approach among several options
encouraged closing out construction projects as quickly as
to provide quality performance cost-effectively. Although
possible, rather than an opposition to warranties per se. These
this firm had nothing against warranties per se, it believed that
agencies favored effective enforcement of project specifica-
agencies need not rely solely on warranties if high-quality
tions in lieu of warranties as the currently preferred approach
materials, strong but reasonable and achievable (not onerous)
to managing pavement marking performance and the risk of
specifications, and correct installation methods were called
premature failure. Any inclination by these agencies to con-
for and provided. Good techniques and products that are avail-
sider pavement marking warranties in the future would be
able today can readily achieve longer, higher-performance ser-
addressed, but with care and deliberation.
vice lives; for example, use of recessed markings in Northern
climates; high-quality, durable marking materials; correct
Ten of the agencies that do not now use warranties
placement and application of materials (e.g., glass beads in
expressed an open mind toward possible future use and wel-
paint); and increased specification and measurement of wet
comed additional information to help in their decision. These
retroreflectivity. A strong relationship between materials sup-
respondents believed that all of the categories of information
plier and contractor is very helpful toward these ends, in the
listed in the survey questionnaire would be useful in their
view of this contractor.
assessments (refer to Figure 15 in chapter three).
Notwithstanding their general support for warranties, the
VIEWS OF PRIVATE SECTOR FIRMS interviewed firms collectively identified a number of risks
that contractors and materials manufacturers may face on a
Private sector perspectives were obtained through interviews warranted project, and ways to mitigate them. The risks are
with seven U.S. and Canadian pavement marking contractors categorized here for ease in explanation, but are actually
and two marking materials manufacturers. Most of these firms interconnected and somewhat overlapping, and one type of
had performed work involving warranties; all were familiar risk can lead to another. Contractors and materials suppliers
with performance-based specifications and spoke from expe- must deal with the total situation when deciding whether and
rience. Although the contractors worked in different geo- how to bid the job. The types of risk are as follows:
graphic regions and dealt with a range of pavement marking
materials, their willing participation in the project interviews · Technical risks typically caused by a failure to use the
may have represented a self-selected sample. Attempts to right material or application method for the job, resulting
obtain a wider range of views from firms of different charac- in a pavement marking that fails to perform as intended.
teristics, or those less inclined toward warranties, were not Technical risks may arise because of deficiencies in con-
successful. Supplementary findings from other studies were tractor knowledge and preparation, subpar execution at
gathered to fill this gap. the jobsite, faults in the specifications themselves or with
