User avatar G
Guest

What is construction Defect Liability Period - DLP

This article explores the defects liability period in FIDIC contracts, comparing it to statutory periods in civil law countries. It discusses the contractor's obligations, retention money, and the potential for latent defects.

Defect Liability Period   Dlp
Defect Liability Period Dlp
English version

Under FIDIC conditions, the Defects liability period usually lasts one year but may extend to two years for certain projects. During this period the contractor must not only complete any remaining outstanding items of work as stated in the taking-over certificate but also remedy any defects which may have appeared. The contractor’s obligations in regard to these matters are typically secured by the first half of the retention money and the performance security. The expiration of the Defects liability does not, however, relieve the contractor of further liability for defects, nor does it affect his obligation to rectify them. The contractor remains liable to the employer for any defects that may arise subsequently (commonly referred to as ‘latent defects’) for the entire duration of the applicable statute period. However, an important distinction from the employer’s point of vue is that the contractor’s responsibility to repair latent defects is no longer protected by either the retention money, or the performance security. Consequently, unless the contractor can be persuaded to correct the defect voluntarily, the employer would normally have to pursue him and/or his assets wherever they can be located in order to obtain redress.

In some civil law countries, such as France, local statutes or public policies may impose absolute liability upon the contractor for a specified number of year after substantial completion of the project and the issue of a taking-over certificate. In France, this period lasts 10 years, during which the contractor is required to insure against his liability. The act of public works in state x appears to have contained a comparable warranty or guarantee provision, although only for 5 years. In international construction contracts, there is sometimes confusion about the relationship between the Defects liability periods in a FIDIC contract and the mandatory statutory periods. This may be due either to a failure to distinguish clearly between a contractual and a statutory warranty period, or to an incorrect translation into another language, resulting in a dispute over the time at which the second half of the retainer money should be released, i.e. after the expiration of a one or two year Defects liability period, or after the expiration of a much longer statutory period.

Elie Saad's photo
Elie Saad
Sep 15, 2024
1
78
1.74k+
775

Related Checklists


Final Cleaning and Debris Removal Inspection Checklist
✅ 11 items
Final cleaning and debris removal are critical steps at the end of a construction project. This phase ensures the site is safe, aesthetically pleasing, and ready for use. Our checklist covers the key tasks and inspections needed to verify that all construction debris is removed, surfaces are cleaned, and any remaining issues are addressed. Completing these tasks not only enhances the appearance and safety of a site but also prevents future maintenance problems. Users can interact with this checklist online, mark tasks as complete, add comments, and export the finished report with a QR code for authenticity.
Painting Surface Prep and Primer Inspection
✅ 11 items
Ensuring a flawless paint job begins long before the first brush stroke. Proper surface preparation and primer application are crucial steps that determine the longevity and appearance of the final coat. This checklist provides a structured approach to inspecting these preliminary stages, focusing on cleanliness, surface defects, primer application, and drying times. Use this checklist to guide inspections and ensure that all necessary steps are completed to the highest standards, minimizing the risk of costly rework and enhancing the quality of the finished product.
Steel Material & Fabrication Inspection Checklist | Ensure Safety
✅ 15 items
Ensuring the quality and safety of steel materials and their fabrication is crucial before erection in any construction project. This comprehensive checklist provides detailed steps to assess the integrity, compliance, and suitability of steel components. By following this guide, inspectors and construction professionals can identify potential issues early, ensure adherence to industry standards, and ultimately contribute to the longevity and safety of the structure being erected.
Comprehensive Structural Steel Welding and Bolting Inspection
✅ 14 items
Structural steel welding and bolting inspections are critical in ensuring the integrity and safety of steel structures. This process involves a thorough examination of welds and bolts, either visually or using Non-Destructive Testing (NDT) methods if required. The inspection aims to identify any defects or issues that might compromise the structural stability. This checklist is essential for quality assurance, helping prevent costly repairs and ensuring compliance with safety standards. Users can interact with this checklist by ticking items, adding comments, and exporting the completed report as a PDF or Excel document, complete with a unique QR code for authentication.
Carpentry and Joinery Installation Inspection Checklist
✅ 15 items
This Carpentry and Joinery Installation Inspection Checklist is designed to guide construction professionals in assessing the quality and accuracy of carpentry and joinery work on site. Whether you are a site manager, a quality assurance inspector, or a skilled tradesperson, this checklist provides a structured approach to ensuring installations meet industry standards and client specifications. It covers essential aspects such as materials, workmanship, safety, and compliance, helping you to identify and address potential issues before they escalate. Proper inspections not only enhance the durability and safety of the structures but also ensure customer satisfaction and project success.

Related Articles


Construction Project Retention
⏳ 3 min read
Retention In Construction: Formulas, Bonds & Accounting Guide
Learn how construction retention works with clear formulas, bond types, accounting entries, and examples. Ensure cash flow and quality in your projects.
How To Create a Project Cash Flow For Contractors
⏳ 6 min read
Learn How To Create a Comprehensive Cash Flow For Construction Projects. Introducing Cashflowpot
Learn how to create a comprehensive cash flow for construction projects, including key contract conditions, subcontractor retention, work in excess of billing (WIEB), advance payments, and indirect costs. This step-by-step guide helps contractors manage project cash flows efficiently.
Plumbing Defects
⏳ 1 min read
Top Plumbing Defects
Explore the most frequent plumbing issues encountered during construction projects and learn effective strategies to address them, minimizing damage and costs.
Quollnet Cashflow
⏳ 2 min read
How To Use Quollnet To Predict Construction Project Cashflow
Quollnet project cashflow simulates real-life project work progress to generate cashflow projections. Enter project cost, advance payment, duration, retention, and more to forecast your cashflow.
The Inspector Nightmare
⏳ 2 min read
Snag List Is The Inspector Nightmare In Defect Detection, Collection And Distribution
Imagine the chaos of a construction project without a reliable snag list management tool. Learn how the Snaghere app can save inspectors from the pitfalls of manual tracking, missed deadlines, and compromised quality control.