4 Ways to Prevent Skyrocketing Warranty Costs

4 Ways to Prevent Skyrocketing Warranty Costs


Warranty expenses are painful, especially when the claims could’ve been avoidable in the first place. You paid the subcontractor to perform the work during the construction process and then paid again to have the work fixed.

Had the error been caught during the construction process (and it should have been), the added warranty expense could’ve been prevented.

1. Don’t let punch items pile up

Many companies experiencing a high volume of warranty claims don’t have a system in place to keep track of deficiencies. Issues are written on paper lists, typed into emails, recorded into spreadsheets, which creates confusion. Superintendents lose track of which items are fixed and are still pending. Items get missed or lost. This lack of a standardized system results in problems after the project delivery.

A digital system to manage punch list items allows the superintendent and subcontractor to work together. The superintendent can add an issue on the jobsite directly through their phone, and include photos, notes, and location.

The subcontractor can respond to the assigned issue, including their own notes and photos and marking the issue fixed and ready for reinspection. The system keeps tracks of all issues, open and fixed, and nothing falls through the crack.

2. Prevent incomplete or incorrect work from happening in the first place

A digital system provides a platform for subcontractors to document their work. They can use a checklist to ensure all work is complete and take photos to prove that work is correct and meets the quality standards.

3. Use checklist inspections to ensure work is completed correctly

Don't assume that your superintendents will recall every detail of a subcontractor’s work  that needs to be inspected. Create checklists for key phases of construction, such as concrete, framing, and HVAC.

These checklists can verify that common recurring issues are double checked in every home, ensuring that installation and workmanship errors aren’t generating warranty problems for the customer to find.

If your superintendents aren't already using checklists for their quality inspections, a digital program can help implement that process immediately.

4. Track deficiencies to eliminate avoidable, recurring errors

A database allows you to track and analyze warranty defects on a granular level. Look at recurring issues across projects and by the trade, the material, and superintendent.

If you have multiple trades within a category, a digital system allows you to compare them by percentage of the work that is completed correctly. You can weed out underperforming subcontractors as well as pinpoint underlying causes for recurring problems, then devise and apply solutions.

FTQ360 is a digital solution to improve first time quality and eliminate warranty expenses. The app allows superintendents to manage punch lists and perform quality inspections on their mobile device.

Subcontractors can document and photograph their work to verify that it is correct and complete.

And the company can track deficiencies to eliminate avoidable, recurring issues that cause warranty problems.

Learn how contractors are using FTQ360 tools to help reduce skyrocketing warranty costs

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