Defects liability period DLP - Revision history

Designing Buildings at 07:32, 21 November 2022

2022-11-21T07:32:25Z

← Older revision		Revision as of 07:32, 21 November 2022
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−	[[File:Cracking.jpg]]	+	[[File:Cracking.jpg\|link=File:Cracking.jpg]]

	= What is the defects liability period? =		= What is the defects liability period? =
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	Some forms of contract (for example in the USA) allow for an alternative position of 'substantial completion'. The American Institute of Architects (AIA) defines this as: '[The] state in the progress of Work when the Work or designated portion thereof is sufficiently complete in accordance with the Contract Documents so the Owner can occupy or utilize the Work for its intended use.'		Some forms of contract (for example in the USA) allow for an alternative position of 'substantial completion'. The American Institute of Architects (AIA) defines this as: '[The] state in the progress of Work when the Work or designated portion thereof is sufficiently complete in accordance with the Contract Documents so the Owner can occupy or utilize the Work for its intended use.'
−
−	~~[[File:DBWCTA_C_link_defects_liability_period_ebook.png\|link=https://hubs.ly/H0NmDGw0]]~~

	= Related articles on Designing Buildings =		= Related articles on Designing Buildings =

Designing Buildings at 07:31, 21 November 2022

2022-11-21T07:31:56Z

← Older revision		Revision as of 07:31, 21 November 2022
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−	The defects liability period (now called the 'rectification period' in Joint Contracts Tribunal (JCT) contracts) begins upon certification of practical completion and typically lasts six to twelve months.	+	[[File:Cracking.jpg]]

−	~~During this period,~~ the ~~client reports any~~ defects that arise to the contract administrator who decides whether they are defects (i.e. works that are not in accordance with the contract), or whether they are in fact maintenance issues. If the contract administrator considers they are defects, then they may issue instructions to the contractor to make them good within a reasonable time.	+	= What is the defects liability period? =

−	~~NB: It~~ is actually the contractor's responsibility to identify and rectify defects, not the client's, so if the client does bring defects to the contractor's notice, they should make clear that this is not a comprehensive list of all defects	+	The defects liability period (now called the 'rectification period' in Joint Contracts Tribunal (JCT) contracts) is a period specified in construction contracts that begins on certification of practical completion and typically lasts six to twelve months. During this period, the client reports any defects that arise to the contract administrator who decides whether they are defects (i.e. works that are not in accordance with the contract), or whether they are maintenance issues. If the contract administrator considers they are defects, then they may issue instructions to the contractor to make them good within a reasonable time. Note, it is actually the contractor's responsibility to identify and rectify defects, not the client's, so if the client does bring defects to the contractor's notice, they should make clear that this is not a comprehensive list of all defects
		+
		+	Practical completion is the point at which construction work is certified as practically complete under the building contract. As well as signifying the beginning of the defects liability period, this has the effect of:
		+
		+	* Releasing half of the retention (an amount retained from payments due to the contractor to ensure they complete the works).
		+	* Ending the contractor's liability for liquidated damages.
		+	* Allowing the client to occupy the site.
		+
		+	For more information see: Practical completion.
		+
		+	= What happens at the end of the defects liability period? =

	At the end of the defects liability period, the contract administrator prepares a schedule of defects, listing those defects that have not yet been rectified, and agrees with the contractor the date by which they will be rectified. The contractor must in any event rectify them within a reasonable time.		At the end of the defects liability period, the contract administrator prepares a schedule of defects, listing those defects that have not yet been rectified, and agrees with the contractor the date by which they will be rectified. The contractor must in any event rectify them within a reasonable time.
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	When the contract administrator considers all the items on the schedule of defects have been rectified, they issue a certificate of making good defects. This has the effect of releasing the remainder of any retention and results in the final certificate being issued.		When the contract administrator considers all the items on the schedule of defects have been rectified, they issue a certificate of making good defects. This has the effect of releasing the remainder of any retention and results in the final certificate being issued.

−	~~It is important to note that the defects liability period is not a chance to correct problems apparent at practical completion, it is a period during which~~ the contractor ~~may be recalled~~ to ~~rectify defects which appear. If there are~~ defects ~~apparent before practical completion, then these should be rectified before a certificate of practical completion is issued.~~	+	= What happens if the contractor fails to make good defects? =

−	~~This can~~, ~~however~~, ~~put the contract administrator in~~ a ~~difficult position~~, ~~as both the contractor and the client~~ may be ~~keen~~ to ~~issue~~ the ~~certificate (so that the building can be handed over)~~ and ~~yet defects (more than a de minimis) are apparent in~~ the works~~. Issuing~~ the ~~certificate could render the contract administrator liable for problems that this causes for example in the calculation of liquidated damages~~.	+	If the contractor, having been given the opportunity to rectify defects, fails to do so within a reasonable time, they may be in breach of contract. In this situation others may be employed to rectify the defects, and the cost of such works deducted from the contractor's retention.

−	~~In practice, it is not unusual, particularly if it is in the client’s interests, for a certificate~~ of ~~practical completion to be issued with an attached list of minor omissions and~~ defects to be rectified in the defects period. An example of this would be if the certificate of practical completion might trigger tenants fit out and subsequent payment of rent, when it is in nobody’s interest to delay the programme just for delivery of a piece of door furniture or a replacement light fitting.	+	For more information see: Certificate of making good defects.

−	If the contract administrator is pressured to certify practical completion even though the works are not complete, they might consider informing the client in writing of the potential problems of doing so, obtaining written consent from the client to certify practical completion and obtaining agreement from the contractor that they will complete the works and rectify any defects~~. If the contract administrator is not confident about the potential problems this may cause, they may advise the client to seek legal advice.~~	+	= What happens after the defects liability period? =

−	~~-----~~	+	After the defects liability period, the building owner does not have a contractual right to insist that the contractor rectifies defects not notified during that period. The building owner must instead seek redress in an action for damages, for breach of contract, or for negligence. In the case of dwellings there is a statutory remedy provided by the Defective Premises Act 1972. These rights of action are not perpetual; actions for breach of contract are time barred after six years from the date of the breach (usually the completion of the building although with a failure of design the breach may have occurred earlier), or for a contract under seal, the period is 12 years
−	~~Notes:~~	+

−	~~Some forms~~ of contract ~~allow~~ for an ~~alternative position~~ of ~~'substantial~~ completion'.	+	For more information see: Latent defects.
		+
		+	= What defects should be rectified during the defects liability period? =
		+
		+	It is important to note that the defects liability period is not a chance to correct problems apparent at practical completion, it is a period during which the contractor may be recalled to rectify defects which appear after practical completion. If there are defects apparent before practical completion, then these should be rectified before a certificate of practical completion is issued.
		+
		+	This can, however, put the contract administrator in a difficult position, as both the contractor and the client may be keen to certify practical completion (so that the building can be handed over) and yet defects (more than a de minimis) may still be apparent in the works. Issuing the certificate could render the contract administrator liable for problems that this causes for example in the calculation of liquidated damages.
		+
		+	In practice therefore, it is not unusual, particularly if it is in the client’s interests, for a certificate of practical completion to be issued with an attached list of minor omissions and defects to be rectified in the defects period. An example of this would be if the certificate of practical completion might trigger tenants fit out and subsequent payment of rent, when it is in nobody’s interest to delay the programme just for delivery of a piece of door furniture or a replacement light fitting.
		+
		+	If the contract administrator is pressured to certify practical completion even though the works are not complete, they might consider informing the client in writing of the potential problems of doing so, obtaining written consent from the client to certify practical completion and obtaining agreement from the contractor that they will complete the works and rectify any defects. If the contract administrator is not confident about the potential problems this may cause, they may advise the client to seek legal advice.
		+
		+	For a more detailed analysis of what constitutes practical completion and when it can be certified, see: Practical completion.

	On construction management contracts, a separate certificate of practical completion must be issued for each trade contract. This means there may be a number of defects liability periods. The same is true on management contracts, where each works contract must be certified individually.		On construction management contracts, a separate certificate of practical completion must be issued for each trade contract. This means there may be a number of defects liability periods. The same is true on management contracts, where each works contract must be certified individually.

−	~~[https://centaur.reading.ac.uk/4307/1/Roles_in_construction_projects_v6c.pdf Roles~~ in ~~construction projects~~: ~~analysis and terminology~~]~~, by Hughes, W. and Murdoch, J. R, published~~ in ~~2001 by~~ the ~~University~~ of ~~Reading, suggests that~~ the ~~term ‘maintenance period’~~ is~~: ‘A misleading synonym for defects liability period (~~the ~~contractor is not usually obliged to maintain what has been built)~~.’	+	= What is substantial completion? =
		+
		+	Some forms of contract (for example in the USA) allow for an alternative position of 'substantial completion'. The American Institute of Architects (AIA) defines this as: '[The] state in the progress of Work when the Work or designated portion thereof is sufficiently complete in accordance with the Contract Documents so the Owner can occupy or utilize the Work for its intended use.'

	[[File:DBWCTA_C_link_defects_liability_period_ebook.png\|link=https://hubs.ly/H0NmDGw0]]		[[File:DBWCTA_C_link_defects_liability_period_ebook.png\|link=https://hubs.ly/H0NmDGw0]]
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	= Related articles on Designing Buildings =		= Related articles on Designing Buildings =

−	* Base construction.
	* Certificate of making good defects.		* Certificate of making good defects.
	* Completion date.		* Completion date.
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	* Latent defects.		* Latent defects.
	* Liquidated damages.		* Liquidated damages.
−	* Maintenance.
−	* Migration strategy.
−	* Making good.
−	* Opening up works for inspection and testing.
−	* Performance in use.
−	* Post project review.
	* Practical completion.		* Practical completion.
	* Remedial work.		* Remedial work.
	* Retention.		* Retention.
−	* Retention bond.
	* Schedule of defects.		* Schedule of defects.
	* Soft landings.		* Soft landings.
	* Substantial completion.		* Substantial completion.
−	* What is a final account.

	[[Category:DCN_Definition]] [[Category:DCN_Guidance]] [[Category:Construction_management]] [[Category:Procurement]]		[[Category:DCN_Definition]] [[Category:DCN_Guidance]] [[Category:Construction_management]] [[Category:Procurement]]

Designing Buildings at 10:58, 17 February 2022

2022-02-17T10:58:26Z

← Older revision		Revision as of 10:58, 17 February 2022
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	-----		-----
−	NB: ~~Some forms of contract allow for an alternative position of 'substantial completion'.~~	+	Notes:

−	~~NB: On construction management contracts, a separate certificate~~ of ~~practical completion must be issued~~ for ~~each trade contract. This means there may be a number~~ of ~~defects liability periods. The same is true on management contracts, where each works contract must be certified individually~~.	+	Some forms of contract allow for an alternative position of 'substantial completion'.

−	~~[[File:DBWCTA C link~~ defects liability ~~period ebook~~.~~png\|link=https://hubs~~.~~ly/H0NmDGw0]]~~	+	On construction management contracts, a separate certificate of practical completion must be issued for each trade contract. This means there may be a number of defects liability periods. The same is true on management contracts, where each works contract must be certified individually.

−	= Related articles on Designing Buildings ~~Wiki~~ =	+	[https://centaur.reading.ac.uk/4307/1/Roles_in_construction_projects_v6c.pdf Roles in construction projects: analysis and terminology], by Hughes, W. and Murdoch, J. R, published in 2001 by the University of Reading, suggests that the term ‘maintenance period’ is: ‘A misleading synonym for defects liability period (the contractor is not usually obliged to maintain what has been built).’
		+
		+	[[File:DBWCTA_C_link_defects_liability_period_ebook.png\|link=https://hubs.ly/H0NmDGw0]]
		+
		+	= Related articles on Designing Buildings =

	* Base construction.		* Base construction.

Designing Buildings at 10:35, 21 May 2021

2021-05-21T10:35:43Z

← Older revision		Revision as of 10:35, 21 May 2021
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	NB: On construction management contracts, a separate certificate of practical completion must be issued for each trade contract. This means there may be a number of defects liability periods. The same is true on management contracts, where each works contract must be certified individually.		NB: On construction management contracts, a separate certificate of practical completion must be issued for each trade contract. This means there may be a number of defects liability periods. The same is true on management contracts, where each works contract must be certified individually.
		+
		+	[[File:DBWCTA C link defects liability period ebook.png\|link=https://hubs.ly/H0NmDGw0]]

	= Related articles on Designing Buildings Wiki =		= Related articles on Designing Buildings Wiki =

Designing Buildings at 08:07, 1 October 2020

2020-10-01T08:07:34Z

← Older revision		Revision as of 08:07, 1 October 2020
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	NB: On construction management contracts, a separate certificate of practical completion must be issued for each trade contract. This means there may be a number of defects liability periods. The same is true on management contracts, where each works contract must be certified individually.		NB: On construction management contracts, a separate certificate of practical completion must be issued for each trade contract. This means there may be a number of defects liability periods. The same is true on management contracts, where each works contract must be certified individually.
−
−	~~[[File:C_link_defects_liability_period.png\|link=http://zpr.io/gk2be]]~~

	= Related articles on Designing Buildings Wiki =		= Related articles on Designing Buildings Wiki =

Designing Buildings at 06:38, 27 August 2020

2020-08-27T06:38:15Z

← Older revision		Revision as of 06:38, 27 August 2020
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	* What is a final account.		* What is a final account.

−	[[Category:Construction_management]] [[Category:Procurement]]	+	[[Category:DCN_Definition]] [[Category:DCN_Guidance]] [[Category:Construction_management]] [[Category:Procurement]]

Designing Buildings at 09:08, 8 March 2020

2020-03-08T09:08:44Z

← Older revision		Revision as of 09:08, 8 March 2020
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	* Defects.		* Defects.
	* Defects correction period (NEC).		* Defects correction period (NEC).
		+	* Defects list.
	* Extended aftercare.		* Extended aftercare.
	* Handover to client.		* Handover to client.

Editor at 10:49, 12 November 2019

2019-11-12T10:49:25Z

← Older revision		Revision as of 10:49, 12 November 2019
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	NB: On construction management contracts, a separate certificate of practical completion must be issued for each trade contract. This means there may be a number of defects liability periods. The same is true on management contracts, where each works contract must be certified individually.		NB: On construction management contracts, a separate certificate of practical completion must be issued for each trade contract. This means there may be a number of defects liability periods. The same is true on management contracts, where each works contract must be certified individually.

−	[[File:~~C link defects liability period~~.png\|link=http://zpr.io/gk2be]]	+	[[File:C_link_defects_liability_period.png\|link=http://zpr.io/gk2be]]

	= Related articles on Designing Buildings Wiki =		= Related articles on Designing Buildings Wiki =
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	* Soft landings.		* Soft landings.
	* Substantial completion.		* Substantial completion.
		+	* What is a final account.

	[[Category:Construction_management]] [[Category:Procurement]]		[[Category:Construction_management]] [[Category:Procurement]]

Designing Buildings at 13:35, 25 June 2019

2019-06-25T13:35:35Z

← Older revision		Revision as of 13:35, 25 June 2019
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	NB: On construction management contracts, a separate certificate of practical completion must be issued for each trade contract. This means there may be a number of defects liability periods. The same is true on management contracts, where each works contract must be certified individually.		NB: On construction management contracts, a separate certificate of practical completion must be issued for each trade contract. This means there may be a number of defects liability periods. The same is true on management contracts, where each works contract must be certified individually.

−	= ~~Find out more =~~	+	[[File:C link defects liability period.png\|link=http://zpr.io/gk2be]]

−	=== Related articles on Designing Buildings Wiki ===	+	= Related articles on Designing Buildings Wiki =

	* Base construction.		* Base construction.

109.148.98.212 at 05:42, 7 May 2019

2019-05-07T05:42:21Z

← Older revision		Revision as of 05:42, 7 May 2019
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	During this period, the client reports any defects that arise to the contract administrator who decides whether they are defects (i.e. works that are not in accordance with the contract), or whether they are in fact maintenance issues. If the contract administrator considers they are defects, then they may issue instructions to the contractor to make them good within a reasonable time.		During this period, the client reports any defects that arise to the contract administrator who decides whether they are defects (i.e. works that are not in accordance with the contract), or whether they are in fact maintenance issues. If the contract administrator considers they are defects, then they may issue instructions to the contractor to make them good within a reasonable time.

−	NB: It is actually the contractor's responsibility to identify and rectify defects, not the ~~clients~~, so if the client does bring defects to the contractor's notice, they should make clear that this is not a comprehensive list of all defects	+	NB: It is actually the contractor's responsibility to identify and rectify defects, not the client's, so if the client does bring defects to the contractor's notice, they should make clear that this is not a comprehensive list of all defects

	At the end of the defects liability period, the contract administrator prepares a schedule of defects, listing those defects that have not yet been rectified, and agrees with the contractor the date by which they will be rectified. The contractor must in any event rectify them within a reasonable time.		At the end of the defects liability period, the contract administrator prepares a schedule of defects, listing those defects that have not yet been rectified, and agrees with the contractor the date by which they will be rectified. The contractor must in any event rectify them within a reasonable time.