Warranties and Warranty Clauses

General
With certain limitations, warranties may be specified for LG construction projects. Prior to 1991, the FHWA had a longstanding policy restricting the use of warranties on federal-aid projects to electrical and mechanical equipment. The rationale for the restriction was that such contract requirements may indirectly result in federal-aid funds participating in maintenance costs. The use of federal-aid funds for routine maintenance is prohibited by law.
23 CFR §635.413
addresses warranties related to projects on the national highway system (NHS). The regulation states warranty provisions shall be for a specific construction product or feature. Routine maintenance items are still ineligible.
The LG may include warranty provisions in NHS construction contracts in accordance with the guidelines listed in the
LGPM Guide
.
Federal Requirements
  1. 23 CFR §635.413
    – Allows the use of warranty provisions for a specific product or feature for projects on the NHS. Warranties for the entire project are not acceptable. Contractors may not be required to warrant items over which they do not have control.
  2. 23 CFR §635.413(e)
    – Allows for certain regulatory changes for design-build projects on the NHS, as appropriate.
    1. General project warranties may be used with limitations.
    2. Contracting entities may allow proposers to submit alternate warranty proposals for determination of best value.
State Requirements
  1. No comparable state statute.
Required Practices
In general, the LG must submit warranty procedures to TxDOT for approval. The
LGPM Guide
provides required practices and responsibilities.