11 Ways to Minimize Warranty Expenses

Recently, I was checking updates on LinkedIn and saw a repost of an article that Tony Callahan, now Shea Homes’ VP of Corporate Purchasing, had written for Professional Builder magazine. He shared 11 tips for minimizing warranty expenses, one of the first business metrics we’ve been exploring through Cost of Quality research. 

There’s some good stuff in the article, including examples. Here’s the essence of each tip.  If this is a metric you want to move the needle on, I’d encourage you to take a deeper look

  1. Consider constructability and warrantability during the design process.
  2. Look for whole-house engineered solutions.
  3. Involve trades when developing construction documentation to ensure clarity.
  4. Be specific to protect yourself in subcontractor, supply and sales contracts.
  5. Use better materials – considering both first costs and replacement costs when making design decisions.
  6. Avoid the most common warranty expense: bad installation.
  7. Empower Construction Superintendents to identify issues before they are hidden.
  8. Equip them with checklists to ensure consistency.
  9. Educate your homeowners on proper maintenance.
  10. Track defects to identify and eliminate root causes.
  11. Get the fit and finish details right to avoid the snowball effect of scrutiny elsewhere.

Again, here’s the link to the full article on Professional Builder’s website.