U.S. Department of Transportation
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Construction Program Guide


Warranties have been successfully used, in other countries and by some States on non-Federal projects, to protect investments from early failure. Prior to 1991, the FHWA had a longstanding policy that restricts 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, and the use of Federal-aid funds for routine maintenance is prohibited by law. However, the Agency utilized the public notice / public comment process to develop and implement a rule making for warranties in 1995.

The regulation applies to projects on the National Highway System. Contracting agencies may use their own warranty procedures on non-National Highway System projects.

Authority/Legal Basis

  • 23 USC 116 Maintenance indicates that that it is the State DOT's responsibility to provide for maintenance of a project built with Federal-aid funds.
  • On this basis, FHWA's policy does not allow Federal-aid participation in routine maintenance (operations such as: snow removal, graffiti removal, grass cutting, etc.); however, paragraph (d) of Section 116 provides the authority for Federal-aid participation in preventive maintenance costs. Thus by statute, routine maintenance can be included in warranty provisions.


General Information


Updated: 08/24/2016
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