Benefits of Warranties to Indiana

Several states have experimented with performance warranties on hotmix asphalt (HMA) pavements. Generally, the quality of warranted HMA is perceived to be better. Also, it is believed that HMA extends pavement life. Various methods can be used to define the benefits of warranties. Benefits have to be related to the performance life of the pavement and the cost. This study documents the effectiveness of the Indiana 5-year performance warranties and demonstrates that projected lifetimes of the warranted HMA pavements are being extended an additional 9 years in evaluations of international roughness index (IRI) and rutting criteria over the typical design life of the pavements. The cost-effectiveness of the warranted pavements, even though the initial costs are 5% to 10% higher, is significant when one considers the extended life of the warranted pavements. Overall cost to maintain the network Interstate smoothness at a constant 2002 value is $ 1.08 billion with warranties and $ 1.47 billion for nonwarranty projects, or a savings for warranty projects of 27%. Warranty projects require fewer demands on budgets and provide for lower network IRI at the same effective age of the pavements. Indiana HMA warranties have accomplished the initial goals of both the Indiana Department of Transportation and the HMA industry by providing smoother and safer pavements with fewer defects over a longer period of time, which reduces delays and congestion. At the same time, the economic benefits of warranted pavements are significant.