This article seeks to explain the defect liability period, including the various considerations that need to be taken into account when negotiating it. With this information, civil engineers can properly assess their obligations and ensure the best outcome for their clients.
The defect liability period is the period following the completion of a construction project during which the contractor is responsible for any defects that may emerge. The length of the period is typically negotiated between the contractor and the client and will vary depending on the project in question. It’s important to note that the defects liability period only applies to defects that are the result of the contractor’s workmanship – it does not cover defects that are beyond the contractor’s control, such as those that arise from the use of faulty materials.
Factors Affecting Defect Liability Period
When negotiating the period, several factors need to be taken into account.
The first is the nature of the project – for example, a complex project with a large number of subcontractors is more likely to result in defects than a simple project with only a few contractors.
The second is the level of risk involved – a project with a high level of risk is likely to have a longer defect liability period than a low-risk project.
The third factor is the client’s expectations – if the client is expecting a high level of quality, they will likely want a longer defects liability period than a client who is expecting a lower level of quality
Ultimately, the negotiation of the defect liability period is a balancing act between the interests of the client and the contractor. The key for civil engineers is to ensure that their obligations are properly assessed and that the interests of their clients are represented. With a clear understanding of the defect liability period, civil engineers can help to ensure the best possible outcome for all parties involved.
Important Facts on Defects Liability Period
- Complete outstanding work and rectify defects
The contractor needs to complete any work on the date of the taking-over certificate. This work shall be completed within the reasonable time specified by the engineers for the project.
Further, all the defects, damage to the properties, etc. shall be completed before completing the defect liability period.
- Cost of Rectifying Defects
All the costs incurred by the contractor for rectifying the defect shall be borne by him. However, any changes made by the engineer or the client, which are not covered by the original scope of work of the contractor, are not the responsibility of the contractor. Any cost for this kind of work shall be borne by the employer.
- Extension of the Defect Liability Period
There are provisions in the contracts to extend the defect liability period. This may be for part of the work that may not be completed at the time of taking over by the employer. The extension is solely based on the conditions stipulated in the condition of the contracts.
- Failure of the Contractor to Rectify Defects
If the contractor fails to complete the defects in the reasonable time given to him, he will be notified giving time to complete the work. If the contractor is not carrying out the remedy to defects, the client himself can attend work and claim it from the contractor. The retention with the employer could be used to claim that cost.
Connection with Retention
Retention is reduced from each interim payment kept with the employers to make sure the contractor proceeds with the work according to the contract agreement. Generally, the retention is released at the end of this period. However, as agreed by both parties, sometimes, when the contractor produces some guarantee, retention is released before completing the defect liability period.
In certain contracts, 50% of the retention is released at the physical completion of the project and the other half will be released at the end of the defect liability period.
