A Practical Guide to Defects and the Defects Liability Period Under NZS 3910

The Defects Liability Period is where many misunderstandings happen. Who is responsible for what? What counts as a defect? When does liability actually end? These questions cause unnecessary disputes on projects that were otherwise delivered well.

The Defects Liability Period is the time after Practical Completion during which the Contractor remains responsible for fixing defects that appear in the works. It typically runs for 12 months, unless the contract specifies otherwise, and it starts from the date of Practical Completion - not the final inspection. During this period, the Contractor is not on call around the clock, but they must fix notified defects within a reasonable time.

The most common pitfalls are missing the notification window, incomplete documentation, and confusing routine maintenance with defective work. Wear and tear and poor operation are not defects unless caused by the Contractor's work. Maintain a live defects register throughout the DLP, respond promptly to notifications even if just to acknowledge them, schedule a pre-final inspection a month before the DLP ends, and close out every defect with formal sign-off from the Contract Administrator.