Contracts in the construction industry have become more prevalent in the last couple of decades. Moreover buyers in the construction industry rely heavily on the length of the contracts and warranties for the purchase of any product or service. The warranty/contract is an agreement between the buyer and the manufacturer laying out the conditions of a certain product or service to be provided. The contract/warranty is supposed to minimize the risk of buyers when purchasing a service or product but that is rarely the case.

Contracts & Warranties

The only time a contract is used is when something has gone wrong with a project or product. At this time, the buyer refers to the contract to force the contractor to provide what is in the contract. In this situation both parties end up spending an exorbitant amount of money in hiring lawyers, doing paperwork, and disputing in court. There are no “winners” in these types of situations. In most cases, the contract or warranty doesn’t guarantee anything. The contract is only as good as the contractor that signed it.

One of the manufacturers in the construction industry, in order to differentiate themselves from other manufacturers, approached the researchers to implement a system that can better assist and serve their end users beyond just providing a warranty.

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Using Satisfaction Ratings Instead of Contracts to Minimize Risk

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