Defects Liability Period

What it covers

During the DLP, the contractor must remedy at their own cost any defects in the works that emerge — settlement cracks, mechanical failures, paint deterioration, water ingress, ironmongery failures, and similar. The standard is "defects in materials or workmanship" rather than damage caused by the client's use.

Defects identified during the period are notified to the contractor in writing. The contractor returns to site to rectify. Multiple visits are common; some contracts require the contractor to return monthly.

How it ends

At the end of the DLP, the contract administrator inspects the building and either issues a "schedule of defects" listing items still requiring remedy, or issues the Certificate of Making Good Defects confirming all defects are remedied. Once issued, the second half of retention is released to the contractor.

On UK projects with significant retention values, the period between PC and final retention release is a real cashflow event for the contractor. Consultancies should stay on top of inspections rather than letting the period drift unmanaged.

Common pitfalls

• Not maintaining a defects log during the period. Defects emerge throughout the 12 months and are easy to lose track of. A structured defects log linked to the project is essential.
• Mixing snags with defects. Snags are pre-PC items the contractor failed to complete; defects are post-PC items that emerged. They have different contractual treatments and shouldn't be mixed in the same list.
• Missing the end-of-DLP inspection deadline. If the consultant doesn't inspect at the end of the period, retention may be released without a proper Certificate of Making Good Defects, leaving the client without recourse for remaining defects.

Related

• What is practical completion? →
• What is snagging? →
• What is a final account? →