Defects liability period DLP

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.

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 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.

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.

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.

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.

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.