Defects liability period Definition

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What does Defects liability period mean?

The duration, usually expressed as a period of time for which the contractor will remain responsible for correcting defects free of charge which arise from his workmanship.

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This period is frequently expressed as being '12 months from Practical Completion' or '12 months from taking over of the works' the duration will depend upon the nature of the project and the length of time within which it can be reasonably said that defects would make themselves apparent

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Completing the JCT 2016 Intermediate Building Contract Particulars—checklist

Completing the JCT 2016 Intermediate Building Contract Particulars—checklist The Agreement, Recitals, Articles and Contract Particulars at the start of a JCT contract set out the project specific details for the particular works to be carried out. It is very important that these are fully completed and that the details are correct to avoid ambiguity and disputes regarding what is required. This Checklist provides practical guidance as to how to complete the details including links to relevant Practice Notes which provide detailed information on the areas covered. It is aimed at those who are relatively new to dealing with JCT contracts. An employer will often arrange for the architect/contract administrator or other consultant to complete the particulars at the start of the contract and will then ask its lawyer to check the contract before the parties execute it. Alternatively, a lawyer may be asked to fill in all of the details but they will need input from the client or its consultants as to the details to be inserted. This Checklist...

Completing the JCT 2016 Minor Works Building Contract Particulars—checklist

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Defects liability period and rectification of defects

It is common in construction projects for defects to manifest or appear in the works. Most construction contracts require the contractor to return to site to rectify (also known as ‘make good’) defects which arise or are discovered during a specified period after practical completion of the works. This is typically referred to in the construction industry as the defects liability period (DLP), although the JCT contracts refer to it as the rectification period, NEC uses the term defects date and FIDIC refers to it as the defects notification period.What is a defect?As the DLP relates to the rectification of ‘defects’, it is important to consider what this term covers. ‘Defect’ is not a term of art and there is no ‘standard’ definition of what constitutes a defect in building works. However, in broad terms, a defect is work which does not meet the standard or a specification required by the building contract. This can be due to fault(s) in the work, materials or design, or shortcomings in the quality...

What is practical completion?

Practical completion marks the end of the construction period of a project, when the works are 'finished' and the employer can occupy and/or use them. Practical completion also typically marks the start of the defects liability period/maintenance period.As explained below, practical completion is an important stage in a construction project because it has significant commercial, contractual, financial and practical implications for both the employer and the contractor. Whether a construction project has, in fact, achieved practical completion is a frequent source of disagreement and disputes within the construction industry.Practical completion is also known as ‘substantial completion’ or simply ‘completion’ in some contracts.What does 'practical completion' mean?Many problems that occur on construction projects in relation to practical completion arise out of the difficulty in knowing what the term practical completion means.It is quite typical for the expression 'practical completion' to be used in building contracts with little or no clarification as to what it is intended to mean, ie what state the contract requires the works to have reached in order...

Discover our 74 Practice Notes on Defects liability period

Schedule of services—Structural Engineer (traditional procurement)

Schedule of services—Structural Engineer (traditional procurement) Schedule of services—structural engineer (traditional procurement) The Consultant shall: General responsibilities (Stages 0–7) • [act as Lead Consultant in relation to the Project, which shall include: • advising in relation to the scopes of services for other members of the Design Team • advising on the need for other specialist consultants that may be required to complete the Project (and their scopes of services) • directing other consultants forming the Design Team • co-ordinating and integrating the design of the Project as a whole • arranging and chairing regular design meetings to facilitate the conduct of the Project and ensure that minutes are taken and circulated afterwards • facilitating communication between the Client and the Design Team] • [perform services as Principal Designer for the purposes of the Construction (Design and Management) Regulations 2015 to ensure best practice at all times in respect of safety in design OR interact and liaise as required with the Principal Designer and ensure best practice at all...

Report on construction documentation

Report on construction documentation [insert name of property] Executive summary [insert a general summary of the construction documents/highlight any key areas of concern] Building contract and related documents Save where otherwise indicated below, the Building contract, consultant’s appointments and collateral warranties are generally in line with what we would expect to see on the market, in particular containing the following: 1) a requirement to carry out the Works/provide the Services using a standard of reasonable skill and care to be expected of a qualified professional or contractor experienced in working on projects similar to the Works; 2) an obligation not to specify or use harmful or deleterious materials when carrying out the Works; 3) an obligation to provide an irrevocable and royalty-free copyright licence for use of any and all documents and materials produced by the Contractor/Consultants during the course of the Works, with such licence also being capable of being assigned or transferred to third parties without restriction; 4) a requirement to maintain professional indemnity insurance to...

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What is decennial insurance?

What is decennial insurance? Decennial insurance is insurance that can be taken out by those responsible for the design and construction of buildings to cover the costs associated with the total or partial collapse of a building after completion or the discovery of latent/structural defects that compromise the building's safety or stability. Decennial liability originated in France in the early 1800s and has been enshrined in the French Civil Code ever since. The name derives from the fact that it imposed a ten-year liability, after completion of a project, on contractors and designers responsible for the design and construction of a building. Decennial liability acknowledges that the costs arising out of the complete or partial collapse of a building could be huge and may not be covered by other insurances. Cover under this type of insurance can include not just reinstatement of the building but also loss of use and/or loss of profits. Decennial liability is typically a form of strict liability, ie no proof is required...

Is there any case law or guidance on claiming damages (including loss of profit) in a defects claim where the parties are using an NEC contract?

Is there any case law or guidance on claiming damages (including loss of profit) in a defects claim where the parties are using an NEC contract? When determining what damages an employer may claim, it is necessary to consider general principles regarding damages. As set out in Practice Note: Quantum in construction claims, the normal function of damages for breach of contract is compensatory—the aim is to compensate the loss suffered by the claimant and place it in the same position, so far as money can do so, as it would have been in had the contract been performed. The extent to which a type of loss, such as loss of profits, may be recoverable is primarily governed by the concepts of causation and remoteness (although other factors, such as whether the claimant has mitigated its loss, will also be relevant). Accordingly, a claimant must first show: • there is a causal link between the breach (eg the defect) and the loss suffered • that the...

See the 9 Q&As about Defects liability period

Revisiting URS Corporation v BDW Trading—claims by developers under the Defective Premises Act 1972

Construction analysis: In this article, we revisit the Court of Appeal’s judgment in URS Corporation v BDW Trading, looking at what the court’s decision may mean for developers involved in historic defect claims, with a particular focus on the Defective Premises Act 1972 (DPA 1972).

Related adjudications on defect claims did not concern the same dispute (Lewisham Homes v Breyer Group)

Construction analysis: The Technology and Construction Court (TCC) rejected an argument that an adjudicator had purported to decide substantially the same dispute as one determined in a previous adjudication. The first adjudication concerned the employer’s entitlement to a payment on account, in respect of defects in the contractor’s work. The second adjudication concerned the employer’s entitlement to a final award of damages, which was significantly different from the matter of its right to a payment on account. Note that this judgment is dated 14 April 2021, but was only made available (on BAILII) on 29 June 2021.

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