Despite Warranty, New Mexico Shells Out For Road Repair

Apr 7, 2013

The state of New Mexico has had to pay nearly $14 million in unexpected repair costs for a stretch of U.S. 550 due to a liability limit that was included in a 20-year warranty on the reconstruction and widening of the highway between San Ysidro and Bloomfield.

The Albuquerque Journal reports that the state so far has picked up about one-third of the $41 million spent to maintain the road under the warranty, which took effect in 2001.

The loophole is expected to cost the state another $10 million before the warranty expires in eight years.

The state shelled out $62 million for the warranty.

The liability limit was tied to the escalating cost of asphalt materials and was included in the warranty coverage guaranteed by a private contractor.


Information from: Albuquerque Journal,

Copyright 2013 The Associated Press.