Mumbai University > CIVIL > Sem 7 > Quantity survey Estimation and valuation

Marks: 5 M

Year: Dec 2013

A defects liability period is a set period of time after a construction project has been completed during which a contractor has the right to return to the site to remedy defects. A typical defects liability period lasts for 12 months.

Purpose of a Defects Liability Period:

1. Defects liability periods also known as rectification provisions can be benefit to both parties
2. For the contractor, it is likely to be more economical and efficient for it to carry out remedial works itself then to pay the costs of another contractor hired by the employer. From the employer’s perspective, it will not need to hire an alternative contractor to carry out the work, to carry out the work itself and reclaim the cost.
3. If there is a contractual right for the contractor to rectify defects, and the employer either does not notify the contractor that rectification is needed or refuses access to the site, then the employer may be in breach of contract.
4. Employers should therefore give careful consideration to the provisions in the contract before hiring a new contractor to carry out remedial works.
5. If the contractor’s original work was of a low standard then the employer can argue that it was reasonable to refuse to let the same contractor return to the site.
6. In deciding whether it is reasonable to refuse to let the contractor return to the site the court can take into account a breakdown in the relationship between the two parties.