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The Management of Construction a Project Lifecycle

The Management of Construction a Project Lifecycle

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Published by: muneeb2u on Jul 20, 2009
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08/06/2015

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The terms warrantyandguaranteetend to be used interchangeably in construction contracts to
designate the obligations the contractor assumes for repairing defects in its work for a specified
period after the commencement of beneficial occupancy. The general conditions cover the
overall obligation and the time period, called the defects liability period or the maintenance
period
. Common defects liability periods are 3 months (Standards New Zealand Paerewa
Aotearoa, 1998) and 1 year (American Institute of Architects, 1997) for the entire project, unless
certain portions of the work are required to have longer periods. These exceptions are given in
the special conditions and often require that the contractor furnish a written guarantee for these
elements. For example, a roofing contractor may be required to provide a written guarantee that
its work will be free of defects for 15 years, whereas a landscaper may have to warrant its trees
and other plantings for 2 years. The New Zealand Conditions of Contract for Building and Civil
Engineering Construction
(Standards New Zealand Paerewa Aotearoa, 1998) provide typical
language on this topic:

11.1.1 The period of defects liability for the contract works or any separable portion
shall commence on the date of practical completion of the contract works or
separable portion. The period of defects liability shall be three months unless some
other period is stated in the special conditions.

11.2.1 The contractor shall remedy defects arising before the end of the period of
defects liability in the contract works from defective workmanship or materials. The
engineer shall give notice in writing to the contractor during the period of defects
liability or within five working days thereafter of defects to be remedied.

11.2.2 The contractor shall not be liable for fair wear and tear during the period of
defects liability.

300The Management of Construction

This document also specifies that, if the contractor fails to complete the repairs within a
reasonable time, the owner is entitled to have the work done and charge the contractor for its
cost.

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