Repair of defects in newly constructed motorways within the warranty period

Construction contracts stipulate an 18–60 month warranty period as well as a bank guarantee of similar duration in order to ascertain adequate fulfilment of obligations. The bank guarantee is usually equal to 5% of the total investment value. After the expiration of the warranty period the legal institution of assurance takes place: this assures that should any defects appear in newly constructed motorway sections which are clearly the result of faulty implementation, the repairs will not mean extra expense for taxpayers or those using the toll motorway during the 10 years following the transfer. After the warranty period the client or operator is required to gather evidence and bear the expenses of proving that the defect is the result of unsatisfactory implementation on the constructor’s behalf. (The whole of the guarantee period is comprised of the warranty and assurance periods.)

Operating tasks include inspections conducted at pre-scheduled intervals, which are conducted by the competent motorway engineering bureaus. The inspections reveal potential defects occurring in the roads or the associated buildings. These inspections are complemented by annual guarantee-related audits, the times of which are fixed during the transfer procedure. All those involved (implementing agent, engineer, investor, operator and authorities) partake in the procedure.

Each independent (meaning separate investment) motorway section usually has a warranty period between 18–60 months (depending on the provisions of the contract between the Investor and the Implementing agent). Experience shows that there are several hundred flaws discovered and reported during this time, the number is of course influenced by a multitude of factors (e.g.: length of the section, ground conditions, environmental factors, number of replaced public utilities, number of installed objects, rest areas and other constructions, etc.). However, the defects are typically small in size and their value only amounts to 1% of the investment sum, but since the price of repairs conducted within the warranty period is not tied to a formal bid, the actual value cannot be determined. As provisions of correcting the defects, the investor and the technical auditor determine technical parameters and approve used technologies.

The implementing agent still has obligations after the expiration of the warranty period, as the general assurance regulations apply.

In general, construction companies with references in motorway construction, which are acknowledged on an international level, do indeed satisfy warranty demands formulated by the client-investor-operator (sometimes even going beyond client demands).

Otherwise – in the case of negative experiences of the investor or operator - the company may lose the bidding competition without positive references and certification.