Despite Warranty, New Mexico Shells Out For Road Repair
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, http://www.abqjournal.com
Copyright 2013 The Associated Press.