Internet Explorer 11 is not supported

For optimal browsing, we recommend Chrome, Firefox or Safari browsers.

New Mexico Grabs a Guarantee Against Road Wear and Tear

Some people buy an extended warranty for a car. New Mexico bought one for a highway.

Some people buy an extended warranty for a car. New Mexico bought one for a highway.

For $62 million, the state gets a 20-year performance warranty on a 120-mile stretch of highway. That amount is above and beyond the basic bid for widening New Mexico 44. State officials estimate that it would otherwise cost the state $151 million to properly maintain the four- lane road over 20 years.

Most road warranties are for three or five years and are part of the basic bid. But the early years are when the state is less likely to need a warranty, says John Fenner, adjutant secretary of the New Mexico Highway and Transportation Department. "It's with the 10- to 20-year warranty where you really get the value."

Critics say $62 million is an awful lot to pay for a warranty, particularly since the design is supposed to require less maintenance. And Attorney General Patricia Madrid has raised concerns about the unique warranty and about the fact that such a large contract had just one bidder.

The contractor, Koch Materials, is building the high-performance road with a different asphalt design and taking the risk that it will perform well. If it doesn't, Koch, which has already built roads with long-term warranties for four counties in three states--Illinois, Kansas and Missouri--is obligated to fix it and pay for the repairs.

Special Projects