Defects Liability Period: What It Covers and What It Does Not

The defects liability period is a stated time after practical completion during which the contractor must return and make good defects that appear in their work. It is not a maintenance agreement and not a warranty on everything in the building — it covers defects arising from the contractor's work, not wear, misuse or items with their own manufacturer warranty.

By Dhruv Agarwal · · 2 min read

Why it matters on a project

Buildings reveal their defects over time, not on handover day. A facade that leaks only in driving rain, air conditioning that cannot cope on the hottest week, a floor that lifts after a few months of traffic — none of these show up at a snagging inspection.

The defects liability period exists to keep the contractor responsible for long enough that those things emerge while someone is still obliged to fix them.

What sits inside and outside it

InsideOutside
Faulty workmanship in the contractor's scopeNormal wear and tear
Materials not as specifiedDamage caused by the occupier
Installation defectsClient alterations after handover
Items that fail because they were fitted wronglyConsumables — lamps, filters, batteries
Work that does not perform as the contract requiredRoutine maintenance the client agreed to do

The boundary is the usual source of dispute, and it is decided by the contract, not by general fairness.

Length is a commercial decision, not a standard

Periods vary by contract and by trade — and different elements can carry different periods within the same project, particularly where a specialist subcontractor or a manufacturer's terms apply.

Two things worth thinking about when the length is set:

  • Does it span the season that will test the building? A period ending before the first monsoon will not surface a facade leak.
  • Does it match the manufacturer warranties on major items? A gap between the two leaves the client exposed in the middle.

How to run it properly

  • Keep one log of defects, with dates, photographs and locations.
  • Report in writing, promptly. Attribution gets harder as time passes.
  • Distinguish defects from maintenance items as you record them — mixing the two weakens the whole list.
  • Inspect deliberately before the period ends, rather than letting it lapse.
  • Confirm in writing when items are made good, so the record closes cleanly.

Common mistakes

  • Treating it as a maintenance contract. It is not, and expecting it to be produces friction quickly.
  • Saving up defects for the end. Late reporting invites the argument that the cause was use, not workmanship.
  • Letting the period lapse without a final inspection. The remaining retention and the obligation usually go with it.
  • Assuming one period covers everything. Specialist works and manufacturer warranties often run on different terms.
  • No written record. Verbal reports are the weakest possible position if the matter is ever contested.

Standards referenced

Administrative provisions covering contracts and responsibilities appear in NBC 2016, Part 2. The defects liability period is a contractual mechanism — its length, scope, exclusions and the handling of retention are set by the project's contract and should be confirmed with legal advice.

Standards referenced

  • NBC 2016, Part 2 — Administration — contracts and responsibilities (Bureau of Indian Standards)

Frequently asked

No. The defects liability period is a contractual obligation on the contractor to come back and fix defects in their own work. A warranty is a separate promise, usually from a manufacturer, about a specific product for a specific time — and manufacturer warranties often run longer than the defects period. Both can apply to the same building, and they are claimed differently.

Normal wear and tear, damage caused by the occupier, changes the client makes afterwards, consumables such as lamps and filters, and anything requiring routine maintenance the client agreed to carry out. It also does not cover a design fault where the design was not the contractor's responsibility. Those exclusions are where most disagreements start.

Retention is a percentage of the contract sum held back as security. Typically part is released at practical completion and the balance at the end of the defects liability period, once outstanding defects have been made good. The percentages and the release points vary by contract, so they must be read rather than assumed.

The contract normally allows the client to have the work done by others and recover the cost, commonly from the retention. That is the practical reason retention exists. Whether and how it can be used depends entirely on the contract wording and should be checked with legal advice before acting.

Report defects promptly and in writing as they appear, rather than saving them all for the end. A defect reported at month two is easier to attribute and cheaper to fix than the same defect raised at month twelve, when the cause is arguable. Keep a single log with dates, photographs and who reported it.

Often, yes, and it is worth considering when agreeing the length. Some defects only appear in particular conditions — facade leaks during heavy monsoon, HVAC capacity during peak summer, condensation in humid weather. A period that does not span the relevant season will not surface those problems while the contractor is still responsible.

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