The Replacement of Warranties with Logic and Common Sense

Abstract

Many problems are caused by owners specifying project technical requirements to expert vendors, then picking the low-price vendor, assuming that all the vendors are providing the same quality of product. Research over the last 20 years has identified that when working with highly technical areas, this practice brings high risk to the owner because the vendors do not have the expertise to understand the requirements. The Alpha sprayed polyurethane foam (SPF) roof system has brought the Dallas Independent School District (DISD) high value but also occasional risk caused by the low-price vendor. The authors are proposing that DISD’s effort to buy the Alpha SPF roof system through the low-price competition will cause DISD risk. A new approach is proposed to DISD: the Alpha SPF roof system only be used as an alternate value added option. This approach assumes that the only way the Alpha SPF system can be procured is if it is in the best interest of the owner due to dominant value. This approach minimizes the risk that DISD has encountered from low-price contractors who have not been able to minimize risk through the use of expertise and experience because their low-price was directly related to practices which are related to a lack of experience and expertise.