Defects Under The NEC 3

Nec3 uses the word ‘defect’ with a strictly limited and defined meaning. It refers only
to defects which are in some way the fault of the Contractor and for which the
Contractor is contractually responsible.

Whats A Defect??????

Clause 11.2 states a defect is…..

 A part of the works not in accordance with the Works Info.
 A part of the works not in accordance with law, or contractor’s design.

The Contract is generally silent on defect for which the employer is responsible and
the intention is probably that the PM should give instructions dealing with such
defects.

Latent Defects which are defects apparent after the issue of the defects certificate (as
the defect could not be uncovered during a routine inspection process but could have
appeared from the use of the structure) are dealt with under clause 43.3 which
basically states that the Employer is still covered under common law for latent defects
even though a defects certificate has been issued.

Clauses 40-45 of the NEC3 are the defects and testing clauses. Clause 40.7 is for
options C-D & E where the costs for repeat tests/inspections due to defects are
disallowable.

Exceptions………..

If the Contractor’s Design is limited to reasonable skill & care ((((option clause
X15))) and he can prove he used RS&C…….then any defect arising as a consequence
of design is not classified as a defect and therefore any costs associated with
rectifying it will be deemed a Compensation Event……………….