The defects liability period (DLP) starts when the work is completed or handed over and runs for the period stated in the contract. During it, the contractor must return and repair defects that appear, such as cracks, leaks or faulty fittings, at its own cost.
Part of the retention money or a performance guarantee is usually held until the DLP ends, so the client has security for those repairs. Once the period ends and defects are cleared, the balance is released as the contract provides.
Record the DLP start and end date for every contract and subcontract. Keep a log of defects reported, when they were attended to, and sign-off, so the release is not delayed by an argument about old complaints. Clear records also show which defects were caused by the contractor and which by misuse after handover.
