Understanding Construction Contracts: Defects Liability

This is part of our series exploring construction contracts—the legal framework that protects your project. While standard contract forms provide the foundation, understanding specific clauses helps you make informed decisions. Today we're examining defects liability: how the law protects you when issues emerge after construction, and what this means for your relationship with your builder.

What is Defects Liability?

Defects liability is your long-term protection against construction problems. While many clients assume their rights end when the builder leaves the site, the law provides substantial safeguards that extend for years after project completion. Understanding these protections—and your responsibilities in maintaining them—is essential for safeguarding your investment.

The defects liability framework operates on two levels: the immediate maintenance period built into your contract, and the broader legal protections that persist well beyond it. Both work together to ensure that construction issues, whether immediately apparent or hidden, can be properly addressed.

The Maintenance Period: Your First Line of Defense

Let's start with what happens immediately after your project is complete. The Maintenance Period, also known as the Defects Liability Period (DLP), typically spans 6 to 12 months from the Contract Completion Date—when the works are substantially finished and you can occupy the premises.

Here's the practical reality: even after completion, minor defects and finishing works often remain. However, as long as these issues don't prevent you from using and enjoying your building, it would be impractical to delay occupancy until every tiny detail is perfect. The DLP addresses this by creating a defined period during which your contractor remains responsible for completing minor works and fixing any defects that emerge.

Think of this period as a transition phase. You're using your new space, identifying how it performs in real conditions, and your contractor is standing by to address any issues. It's a safety net that allows you to settle in while knowing that problems will be promptly resolved.

Beyond the Maintenance Period: Long-Term Protection

Here's what many clients don't realize: your contractor's liability doesn't end when the maintenance period expires. Despite what the name might suggest, the Defects Liability Period is just the beginning of your protection, not the end. Your legal rights extend much further, covering two distinct types of defects.

Patent Defects: Issues You Can See

Patent defects are problems you can spot with a careful inspection—a door that doesn't close properly, visible cracks in walls, or finishes that don't meet specifications. For these readily apparent issues, contractors remain liable for 6 years after project completion. If you discover a patent defect within this timeframe, you have the right to hold your contractor responsible for fixing it.

Latent Defects: Hidden Problems

Latent defects are trickier. These are issues that aren't immediately visible and wouldn't be discovered during a reasonable inspection. Think of problems hidden behind walls, in foundations, or within building systems—issues that only become apparent over time.

For latent defects, contractors are liable for up to 15 years from project completion. However, there's an important condition: you must file any claim within 3 years from when you reasonably became aware of the issue.

Here's what's important: your construction contract works alongside these established legal protections—one doesn't replace the other. The terms in your contract don't override the legal rights you have under common law. Courts will always enforce these protections, providing you with a robust safety net for your investment.

Key Timelines: Patent defects: Contractor liable for 6 years after completion Latent defects: Contractor liable for 15 years after completion Latent defect claims: Must be filed within 3 years of discovery Note: These timeframes apply under Singapore law. Construction regulations vary by jurisdiction, so consult with your architect and legal advisor about your specific situation.

Your Responsibilities as an Owner

While the law provides strong protections, it also expects you to exercise reasonable care in managing your property. Your rights are not unconditional—they come with responsibilities.

The Due Diligence Requirement

Regular walkthroughs of your property aren't just good practice—they're essential for maintaining your legal protections. Courts expect building owners to conduct reasonable inspections and stay alert to potential problems. If you neglect these checks and later discover a defect you should have found earlier, your legal claim may be weakened—even if the defect is genuine.

Consider this scenario: Two years after moving in, you notice water stains on your ceiling. This latent defect wasn't visible during initial inspections. Because you conduct regular quarterly walkthroughs and documented that the ceiling was fine six months ago, you can demonstrate you exercised due diligence. Your contractor remains liable, and you have 13 years remaining to address the issue. Without that documentation, you might struggle to prove when the defect actually emerged.

What Due Diligence Looks Like:

• Conduct regular property inspections (quarterly is recommended)

• Document your findings with photos and dated notes

• Keep a defects log recording any issues discovered

• Notify your contractor promptly when problems arise

• Maintain all correspondence and communications

The law expects proactive ownership, not perfection. You're not required to be a building expert, but you should take reasonable steps to monitor your property's condition and address concerns in a timely manner.

Why the Maintenance Period Benefits Everyone

Given that contractor liability extends well beyond the Maintenance Period, you might wonder: what's the point of the DLP? Why have this specific contractual period at all?

The DLP is primarily a practical mechanism that benefits both parties. During this period, your contractor has the right to rectify defects at their own cost, and you have an obligation to allow them to do so. This protects you financially: your original builder must fix their mistakes at no additional cost to you.

Here's where it gets practical: if you deny your contractor the opportunity to fix defects during the DLP and hire someone else instead, you can only recover what it would have cost the original contractor to make repairs—not the full amount you paid the new builder.

Why? Because it's generally more cost-effective for the original contractor to rectify their own work. They're familiar with the project, understand their construction methods, and have the resources to address issues efficiently. Moreover, since they're likely on-site completing minor works during this period anyway, repairs happen faster with minimal disruption to you.

The DLP isn't a limitation on your rights—it's a smart arrangement that encourages the most practical and economical solution for addressing defects. Think of it as the fast track for getting problems fixed, with your broader legal protections serving as backup for anything that emerges later.

Protecting Your Investment: Key Takeaways

Defects happen in every construction project—what matters is how they're managed. Understanding the defects liability framework helps you protect your investment while maintaining a productive relationship with your builder.

Your Protection in Practice:

The defects liability system provides multiple layers of security. Your contract's maintenance period handles immediate issues efficiently. Beyond that, the law gives you years—even decades—to address problems as they emerge. But these protections only work if you fulfill your part: staying vigilant, documenting conditions, and acting promptly when concerns arise.

Your Action Plan:

1. During the Maintenance Period: Report any defects immediately and allow your contractor to address them

2. Throughout Ownership: Conduct quarterly walkthroughs and photograph your building's condition

3. Keep Records: Maintain a simple log of inspections, issues discovered, and actions taken

4. Act Promptly: When you spot a problem, notify your architect and contractor without delay

5. Seek Guidance: Your architect can help you assess whether an issue requires immediate attention or is part of normal building performance

When in Doubt, Ask

Construction defects can be complex, and knowing when to act isn't always obvious. Your architect is your ally in navigating these situations. We can help you interpret contract terms, assess whether an issue constitutes a defect, determine the appropriate response, and maintain the documentation that protects your rights.

The goal isn't to create an adversarial relationship with your builder—it's to ensure your building performs as it should. Clear contracts, proper procedures, and open communication create a foundation where defects can be addressed efficiently and fairly. By understanding your rights and responsibilities, you approach these inevitable issues with confidence rather than anxiety.

Need guidance on a specific situation? Contact us to discuss how defects liability applies to your project. We're here to ensure your building delivers the performance and value you expect.