The defect liability period (DLP) is a set timeframe after a construction project is completed during which the contractor is responsible for repairing any defects that arise. This period is typically outlined in the contract and ensures that any issues due to faulty workmanship or materials are addressed at no additional cost to the owner.
Why the Defect Liability Period is Important
The DLP provides owners with financial protection, ensuring that contractors fix any issues without requiring additional payment. It also encourages contractors to maintain high-quality workmanship to avoid costly post-completion repairs.
Managing the Defect Liability Period
- Clearly define the DLP duration in the contract, usually ranging from 6 to 24 months
- Keep detailed records of defects reported and remedial actions taken
- Ensure retainage funds are properly managed to cover potential repair costs
Related Terms: Retainage, Warranty Period, Latent Defects, Construction Quality Control
FAQs
How long does a defect liability period typically last?
A: It varies by contract but is usually between 6 months and 2 years.
Does the contractor remain liable for defects after the DLP ends?
A: Only for latent defects, which may be covered under a separate warranty or legal provisions.