Defects are features of the works that are not in conformity with the contract. Defects can be ‘patent’ or ‘latent’:
Patent defects are those that can be exposed by reasonable inspection.
Latent defects are those that cannot be exposed by reasonable inspection.
For example, problems with foundations which may not become apparent for several years after the completion come under latent defects. It can only be discovered when settlement causes cracking in the building.
After a latent defect becomes visible, it becomes patent rather than latent.
From the beginning of construction and till the final certificate has been issued by the consultant, defects that are discovered by inspection (patent defects) may be reported to the contractor. Then, the contractor should rectify them within a reasonable time.
However, all such defects should be rectified before the certificate of practical completion is issued.
Once practical completion has been certified, the client takes possession of the works and the defects liability period (or rectification period) begins.
If there are any defects found during the defects liability period, the client may report those to the consultant. The consultant decides whether they are in fact defects in the works (i.e. works that are not in accordance with the contract), or whether those are maintenance issues. If the consultant judges that they are defects, then the consultant may issue instructions to the contractor to rectify the defects within a reasonable time.
It is the contractor’s responsibility to identify and rectify defects, not the clients. If the client does bring any defects to the contractor’s notice, the contractor should make clear that this is not a complete list of all defects.
Examples of common latent defects include:
- Inadequate wind posts or wall ties causing movement damage to walls.
- Low-quality concrete or misplaced reinforcement allowing movement damage to the structure.
- Inadequately laid foundations causing subsidence of the building.