School of Engineering & Technology

Forensic Structural Engineering

General Conditions of Contract :
DEFECTS LIABILITY PERIOD
Course : Prevention and Resolution of Construction Disputes
(RDMCE13)
Prepared by : Andharia Priyam (101EGMTCE2021001)

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What is Defects Liability Period?
o Defects Liability Period in relation to a work means the specified
period from the date of Substantial Completion Certificate upto
the date of issue of Final Certificate during which the Contractor
stands responsible for rectifying all defects that may appear in
the works executed by the him in pursuance of the contract.

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What is Defects Liability Period?
o When the work is substantially complete, a certificate is issued,
known variously as a certificate of substantial completion,
certificate of practical completion or taking-over certificate.
o At this point a period commences during which time certain
defects may be the responsibility of the contractor. This period is
variously known as defects liability period, defects correction
period or maintenance period.

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What is Defects Liability Period?
o This period is usually of six or twelve months. During this period,
the contractor has the right to remedy any defects that become
apparent in the completed building. Without such a right, the
client would be entitled to employ other people, and charge the
contractor for the work.
o Any defects, shrinkages or other faults arising during this period
due to defective materials or workmanship must be put right by
the contractor at its own expense.

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What is Defects Liability Period?
o The contractual procedure for dealing with defects arising during
the Defects Liability Period is that the contract administrator
should issue a schedule of defects to the contractor not later than
fourteen days after the end of the defects liability period, and the
contractor then has a reasonable time to put them right.

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What is Defects Liability Period?
o Once this has been done, the contract administrator will issue a
‘Certificate of Completion of Making Good Defects’, following
which the contractor becomes entitled to the remaining part of
the retention money.
o It may be noted that, if no schedule of defects is issued, the
employer retains the right to claim damages for breach of
contract.

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What is Defects Liability Period?
o If any defect or defects are not rectified within length of
time specified in the notice, the Client shall be at liberty to
rectify the defect or defects as the case may be at risk and
cost to the Contractor.
o The cost of such rectification shall be recovered from amount
of Retention Money available with the Client or from any
amount due to the Contractor.

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What is Defects Liability Period?
o It is also worth noting that defects liability clauses do not act as
exclusion clauses. If a defect is not included on a schedule of
defects, and is not noticed by the contractor or contract
administrator before the end of the period, the contractor is still
liable for it.
o After the period has expired, the contractor has no right to return
to the site to repair the defect, but is liable to the client for
damages.

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Defects Liability Period Clause from a
tender document from AMC
o The tender document is for Construction of Diaphragm Wall,
Anchor Slab and Earth filling with Infrastructure Services At Indira
Bridge on East Bank of Sabarmati.
o The clause for Defects Liability Period is stated under the Section
titled as Finishing the Contract in General Conditions of the
Contract.

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Defects Liability Period Clause from a
tender document from AMC
54.4.1 Defects Liability : “ Defects Liability Period “ as stated in the
Contract data means the period calculated from:
i. The date of completion of the works certified by the
Engineer.
ii. The respective dates in case different dates of completion of
the part works are certified by the Engineer.

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Defects Liability Period Clause from a
tender document from AMC
54.4.2 Completion of outstanding work and remedying defects:
a) The Contractor shall complete the outstanding work with due
diligence all such work as listed by the Engineer at the time of issue
of “Taking over Certificate “ and also
b) Execute all such work of amendment, reconstruction and
remedying defects, shrinkages or other faults as the Engineer may,
during the Defects Liability period or within 14 days of its
expiration, as a result of an inspection made by or on behalf of the
Engineer, prior to its expiration, instruct the Contractor to execute.

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Defects Liability Period Clause from a
tender document from AMC
54.4.3 Costs of remedying defects:
Costs of all works referred to in clause 54.4.2 above shall be borne
by the Contractor, unless otherwise expressly stated in the contract.

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Comparison of the conditions related to
Defects Liability Period given by Different
Institutions
1. FIDIC
2. CPWD
3. AIA
4. JCT (Joint Contracts Tribunal)

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FIDIC - 2017
CL 1.1.27 :
o “Defects Notification Period” or “DNP” means the period for
notifying defects and/or damage in the Works or a Section or a
Part under Sub-Clause 11.1 [Completion of Outstanding Work and
Remedying Defects], as stated in the Contract Data (if not stated,
one year), and as may be extended under Sub-Clause 11.3
[Extension of Defects Notification Period].
o This period is calculated from the Date of Completion of the
Works or Section or Part.

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FIDIC - 2017
CL 11.1 Completion of Outstanding Work and Remedying Defects:
o In order to complete a Work or a section or a Part according to
the requirements given in the contract, the Contractor shall:
a) complete any work which is outstanding on the relevant Date of
Completion, within the time(s) stated in the Taking-Over
Certificate or such other reasonable time as instructed by the
Engineer; and

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FIDIC - 2017
b) execute all work required to remedy defects or damage, of
which a Notice is given to the Contractor by (or on behalf of) the
Employer on or before the expiry date of the DNP for the Works
or Section or Part.
If a defect appears (including if the Works fail to pass the Tests after
Completion, if any) or damage occurs during the relevant DNP, a
Notice shall be given to the Contractor accordingly, by (or on behalf
of) the Employer.

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FIDIC - 2017
Promptly thereafter:
o the Contractor and the Employer’s Personnel shall jointly inspect
the defect or damage;
o the Contractor shall then prepare and submit a proposal for
necessary remedial work; and
o The Engineer may Review this proposal, and may give a Notice to
the Contractor stating the extent to which the proposed work, if
carried out, would not result in the Plant, Materials, Contractor’s
design (if any) or workmanship complying with the Contract.

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FIDIC - 2017
o After receiving such a Notice the Contractor shall promptly submit
a revised proposal to the Engineer. If the Engineer gives no such
Notice within 14 days after receiving the Contractor’s proposal (or
revised proposal), the Engineer shall be deemed to have given a
Notice of No-objection.
o If the Contractor fails to promptly submit a proposal (or revised
proposal) for remedial work, or fails to carry out the proposed
remedial work to which the Engineer has given (or is deemed to
have given) a Notice of No-objection, the contractor shall be liable
for rejection stated in the conditions of contract.

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FIDIC - 2017
CL 11.2 Cost of Remedying Defects:
All work under Sub-Clause 11.1 shall be executed at the risk and
cost of the Contractor, if and to the extent that the work is
applicable to:
a) design (if any) of the Works for which the Contractor is
responsible;
b) Plant, Materials or workmanship not being in accordance with
the Contract;
c) improper operation or maintenance which was applicable to
matters for which the Contractor is responsible; or
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FIDIC - 2017
d) failure by the Contractor to comply with any other obligation
under the Contract.
If the Contractor considers that the work is applicable to any other
cause, the Contractor shall promptly give a Notice to the Engineer
and the Engineer shall proceed to agree or determine the cause.
If it is agreed or determined that the work is applicable to a cause
other than those listed above, Variation shall apply as if such work
had been instructed by the Engineer.

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FIDIC - 2017
CL 11.3 Extension of Defects Notification Period:
The Employer shall be entitled to an extension of the DNP for the
Works, or a Section or a Part:
a) if and to the extent that the Works, Section, Part or a major item of
Plant cannot be used for the intended purpose(s) by reason of a
defect or damage; and
b) subject to Claims For Payment and/or EOT (Extension of Time).
However, a DNP shall not be extended by more than a period of two
years after the expiry of the DNP stated in the Contract Data.

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FIDIC - 2017
CL 11.4 Failure to Remedy Defects
o If the remedying of any defect or damage is unduly delayed by
the Contractor, a date may be fixed by (or on behalf of) the
Employer, on or by which the defect or damage is to be
remedied.
o A Notice of this fixed date shall be given to the Contractor by (or
on behalf of) the Employer, which Notice shall allow the
Contractor reasonable time to remedy the defect or damage.

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FIDIC - 2017
o If the Contractor fails to remedy the defect or damage by the date
stated in this Notice and this remedial work was to be executed
at the cost of the Contractor, the Employer may:
a) carry out the work or have the work carried out by others, in the
manner required under the Contract and at the Contractor’s
cost, but the Contractor shall have no responsibility for this
work.
b) accept the damaged or defective work, in which case the
Employer shall be entitled to a reduction in the Contract Price.

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FIDIC - 2017
c) require the Engineer to treat any part of the Works which cannot
be used for its intended purpose(s) under the Contract by reason
of this failure as an omission, as if such omission had been
instructed.
d) terminate the Contract as a whole with immediate effect. The
Employer shall then be entitled to recover from the Contractor
all sums paid for the Works, plus financing charges and any costs
incurred in dismantling the same, clearing the Site and returning
Plant and Materials to the Contractor.

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CPWD
o CLAUSE 17 : If any damage shall happen to the work while in
progress, from any cause whatever or if any defect, shrinkage or
other faults appear in the work within twelve months (six months
in the case of work costing Rs. Ten lacs and below except road
work) after a certificate final or otherwise of its completion shall
have been given by the Engineer in- Charge, the contractor shall
upon receipt of a notice in writing on that behalf make the same
good at his own expense or in default the Engineer-in-Charge
cause the same to be made good by other workmen and deduct
the expense from any sums that may be due or at any

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CPWD
time thereafter may become due to the contractor, or from his
security deposit.
o The security deposit of the contractor shall not be refunded
before the expiry of twelve months (six months in the case of
work costing Rs. Ten lakhs and below except road work) after the
issue of the certificate final or otherwise, of completion of work,
or till the final bill has been prepared and passed whichever is
later.

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CPWD
o Provided that in the case of road work, if in the opinion of the
Engineer-in-Charge, half of the security deposit is sufficient, to
meet all liabilities of the contractor under this contract, half of
the security deposit will be refundable after six months and the
remaining half after twelve months of the issue of the said
certificate of completion or till the final bill has been prepared
and passed whichever is later.

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AIA – A201 2017
CL 12.2.2 Correction of Work after Substantial Completion
o If, within one year after the date of substantial completion of the
work or designated portion thereof or after the date of
commencement of warranty or by terms of any applicable special
warranty required by the contract documents, any of the work is
found to be not in accordance with the requirements of the
contract documents, the contractor shall correct it promptly after
receipt of notice from the owner to do so, unless the owner has
previously given the contractor a written acceptance of such
condition.

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AIA – A201 2017
o The owner shall give such notice promptly after discovery of the
condition.
o During the one year for correction of work, if the owner fails to
notify the contractor and gives contractor an opportunity to make
the correction, the owner turn down the right to require correction
by the contractor and to make a claim for breach of warranty.
o If the contractor fails to correct nonconforming work within a
reasonable time during that. After receipt of notice from the owner
or architect, the owner may correct it.

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AIA – A201 2017
CL 12.2.2.2 : The one year period for correction of work, shall be
extended with respect to portions of work, first performed after
substantial completion by the period of time between substantial
completion and that should completion of that portion of the work.
CL 12.2.3 : The contractor shall remove from the site portions of the
work that are not in accordance with the requirements of the
contract documents and are neither corrected by the contractor nor
accepted by the owner.

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AIA – A201 2017
CL 12.2.4 : The Contractor shall bear the cost of correcting destroyed
or damaged construction of the owner or separate contractors,
whether completed or partially completed, caused by the
Contractor’s Correction of removal of work that is not in accordance
with the requirements of the contract documents.

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JCT
CL 3.5 Rectification Period: The Rectification Period is to be stated in
the Contract Particulars. If none is stated, it is to be six months and
the period begins to run after the day named in the Practical
Completion Certificate.
o During this period the Contractor is responsible for making good
defects attributable to quality of materials and standards of
workmanship being otherwise than specified in the Contract.
o The Architect is empowered to issue instructions to the
Contractor requiring the making good of such defects. He may
carry out investigations to identify defects by using his powers to
inspect and test.
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JCT
o While with other instructions the Contractor is to comply Partial
Possession, an instruction in this case is to be complied with within a
reasonable time after its receipt.
o Also, there is an option, which requires the consent of the Employer,
to abandon the instruction, thereby leaving the defect unremedied,
and to make an appropriate deduction from the Contract Sum.
o The last instruction of the Architect requiring the making good of
defects is that its should take the form of a Schedule of Defects
which the Contractor must make good.

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JCT
o This Schedule is referred to in the construction industry as the
‘final snagging list ’ .
o The Architect has up to 14 days after the expiry of the
Rectification Period to issue this Schedule. After the delivery of
this schedule or after the expiry of the 14 days from the end of
the Rectification Period, the Architect has no further powers to
order the making good of defects.

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JCT
o If the contractor failed to comply, as a simple matter of
contractual analysis, the Employer would be entitled, even after
the Rectification Period, to have the work done by a third party
and to recover the costs incurred from the Contractor.
o Such costs may even include costs of the Employer’s managerial
time expended in getting the work done by the third party.

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References
1. Tender Document by AMC – Construction of Diaphragm wall,
anchor slabs and Earth filling with infrastructure services at
Indira Bridge on East Bank of River Sabarmati.
2. Construction Contracts – Law and Management by John
Murdoch and Will Hughes
3. International Construction Contracts A Handbook By William
Godwin
4. The JCT 05 Standard Building Contract Law and Administration

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References
5. Conditions of Contract for Construction – FIDIC Redbook 2017
6. AIA A201 – 2017 General Conditions of Contract for Construction
7. GENERAL CONDITIONS OF CONTRACT 2019 CONSTRUCTION
WORKS - CPWD

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