Decking Labor and Product Replacement Warranties / InsuranceTechnically deck builders are not on the line in terms of warranty with 
Posted by Bobby Parks |
October 27th, 2010
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If you want to start a heated debate amongst deck builders, assemble 30
from any part of the country in a room, walk out to the center of the
floor and ask them to state their opinions regarding alternative decking
or real wood – then move out of the way quickly. You’re going to hear
strongly held opinions split down the middle. Proponents believe
alternatives offer lower maintenance solutions than wood and avoid the
problems associated with it. Many of the naysayer are earlier generation
builders who experienced problems or newer ones that have heard too much
about alternatives. This group believes it’s too risky to bet their
reputations.
Technically deck builders are not on the line in terms of warranty with
any alternative decking or railing product. But contractor’s reputations
are on the line every time a product is recommended or installed. If a
failure occurs, the manufacturer is responsible for warranty obligations
which are for replacement material only. Customers are responsible for
removal, disposal, and new installation expenses.
The reality is only a small percentage of decking products actually fail
and in many cases where they do, manufacturers protect their preferred
contractors by covering all or most cost. To a large degree it’s a
perception issue – problems are bigger and more widespread than they
are. Contractors who have all their eggs in a basket using a product
that has problems risk having a tainted reputation and customer base.
“Labor Replacement Warranties / Insurance” even purchasable warranties
would create a comfort level for reluctant users and increase usage and
market penetration for alternative products. This could be tied to
“proper installation” and available to “certified contractors”. I
believe contractors would be glad to build a little extra money into the
sales price to cover this expense. It would be a huge selling feature.
To go in front of a customer and point out that most decking product
warranties only cover product replacement but another offers you an
“umbrella policy” will sway prospects into customers and make their
decisions easier. All things being equal with product lines, contractors
will migrate to the safer sounding option. Manufacturers that offer this
in my opinion will gain market share given time.
I brought this up last year at the Principia Partners Conference in
Baltimore and found out afterwards GAF, the manufacturer of Correct Deck
CX had begun this type of program. They provide a 5 year material
/labor replacement warranty. I hope that this approach influences others
to adopt similar policies.
It’s my understanding that cap-stock decking products will begin to
dominate the market and over the next couple of years composite options
will be reduced. I believe this is a big move in the right direction and
this improved version should offer less risk. Why couldn’t the labor
warranties be tied to this line of materials?
I don’t claim to know the complications involved but it does seem to me
that even if third parties were to sell and cover the program, that
there’s money to be made. I know many of the people involved in the
alternative decking industry and they are great people. I’ve always had
the impression of their sincerity to continue to improve their product
offerings. If an acceptable percentage was charged to the contractor or
built into the sales price, at least in the upper end lines, this would
keep manufacturers from having to pay out of pocket to protect preferred
contractors. How could this not be a money maker and a win -win for all
involved?
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