What is defect liability period?

What is defect liability period?

Defect Liability Period means the period of validity of the warranties given by the Contractor (commencing at Completion of the Project/Works, during which the Contractor is responsible for defects with respect to the Project/Works.

What is the meaning of defects liability?

Therefore, most standard forms of contract will include a defects liability clause which provides that the contractor will make good defects which appear within a pre-defined period following practical completion.

How do you calculate defect liability period?

The Defect Liability Period is defined as the period of time from the date you receive delivery of vacant possession and keys to your property, where the developer is responsible to fix any defects.

What is a 12 month defect period?

A period following practical completion (usually six or 12 months) during which a building contractor retains liability under a building contract for dealing with any defects which manifest themselves. Also known as a rectification period.

What happens after defect liability period?

Contractor : obliged and liable to rectify defects that appear between the period the Certificate of Practical Completion (CPC) is issued and the expiry of the DLP. In General : Instruction for rectifying defects, shrinkages or other faults can no longer be issued after 14 days from expiry of the DLP.

How long is the defect repair period?

There is an automatic 12-month ‘defect repair period’, during which builders have to fix any defects within a reasonable amount of time, that you have told them about in writing. The 12 month period starts on the date of completion of the building work.

Why is defects liability period 12 months?

Although there are exceptions, most building contracts in Australia prescribe a 12 month defects liability period. Again, this period represents a compromise. On the one hand, not all defects will be reasonably capable of detection at the time of practical completion.

What are the obligations of the contractor during defect liability period?

During the DLP, the Contractor is obliged and liable to rectify defects that appear between the period the Certificate of Practical Completion (CPC) is issued and the expiry of the DLP. Before answering this question, lets define defects or defective works.

How long does defect liability period last?

Typically, a defects liability period (DLP) is either 12 or 24 months from the date of practical completion. In some construction contracts, where a particular defect has been rectified within the DLP, a new DLP for that item will start from the time of the repair and continue for the same period as the original DLP.

What do I do if my new house has defects?

You would need to carry out a detailed inspection of the housing unit, make a list of all the defects and thereafter, submit a defect claim to the Developer.

How long is a tradesman liable for his work?

Most construction contracts provide for a ‘defects liability period’, which may run from 12 to 24 months after completion. Typically the contractor will be responsible for any defects which arise during this period.

What is the difference between defect liability period and warranty?

The defects liability period is a form of warranty that is guaranteed either by the retention of the contractor’s performance security and corresponding bank guarantee, at the end of the period of performance of the contract. These retentions are usually no more that 10% of the contract value. …

When does a contractor have a Defects Liability Period?

A defects liability period is a period of time following practical completion during which a contractor remains liable under the building contract for dealing with any defects which become apparent. Depending on the form of contract you are reading, it may also be referred to as a rectification period or defects correction period.

What happens during the Defects Liability Period ( DLP )?

During the defects liability period, typically: the contractor has the right to return to the site to rectify defects or complete unfinished work; the principal is entitled to continue holding security, to secure the contractor’s obligations in respect of incomplete or defective work; and

What is the defect liability period for a spa?

The standard SPA, governed by the Housing Development Act (HDA), has a defect liability period clause. “For residential property under construction, the SPA is regulated by the HDA. The defect liability period is 24 months from the delivery of vacant possession,” says Tan.

Can a defect be considered a breach of contract?

Defects can be considered as breach of contract. So if these defects are found within the agreed defects liability period, the principal has the right to damages. But surely, this must still be consulted with a building lawyer to confirm if that defect really qualifies as contract breach.