Defects or defective work meaning

This flowchart sets out the process under the FIDIC Red, Yellow and Silver Books, 2017 editions, for defects under: clause 7.5, when any Plant, Materials, design or workmanship is defective or otherwise not in accordance with the Contract, the Employer rejects the affected item and the Engineer (or, under the Silver Book, the Employer) instructs remedial works clause 7.6, where the Employer directs the Contractor to remove and replace non-compliant Plant or Materials, remove and re-execute other non-conforming work, or undertake urgent tasks required for the safety of the Works clause 11.1, under which the Contractor must carry out all work needed to rectify defects or damage, as notified by the Employer on or before the expiry of the Defects Notification Period clause 12.3, if a Test after Completion is not passed, with clause 11.1(b) on remedying defects applying (Yellow and Silver Books only) For more information, see Practice Note: FIDIC Contracts 2017—defects...

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z D&B See Design and build beneath. DBO See Design, build and operate beneath. Date for completion/completion date Means the date stated therein in the building contract (typically within the contract particulars/contract data) by which the contractor must finish the works—ie the point by which practical completion is to be achieved (see Practice Note: What is practical completion?). This completion date may change over the course of the project, for instance where the contractor receives an extension of time. Should the works not be completed by the completion date, the contractor is liable to the employer for liquidated damages (where the contract so provides) or, failing that, general damages for delay in completion (arising from breach of contract thereunder). Date for possession The date set out in the building contract on which the employer gives...

Limitation Act 1980 and Latent Damage Act 1986 The Limitation Act 1980 (LA 1980), as amended by the Latent Damage Act 1986 (LDA 1986), sets the time limits for starting different categories of legal action. If proceedings are issued after the relevant period has run, a defendant can contend that the claimant’s remedy is time-barred. For the construction sector, the most pertinent deadlines concern contractual and tortious (negligence) claims, though the LA 1980 also fixes periods for personal injury, defective products and defamation. There are, moreover, particular limitation rules for claims under specific statutes, including the Defective Premises Act 1972, the Building Act 1984 and the Building Safety Act 2022. Limitation is often critical for disputes about defective work, as the cause of action may arise long before any issue is visible. For example, faulty foundations installed by a contractor might later cause wall cracking and subsidence, yet the problem may not manifest for years. In such circumstances, the limitation period may have lapsed before the defect becomes apparent...

This Practice Note closely examines how defects are addressed under the FIDIC Red, Yellow and Silver Books (2017 editions). For guidance on earlier forms and how they approached such issues, see Practice Note: FIDIC Contracts (pre–2017 editions)—defects. For a wider overview and context on defects, refer to Practice Note: Defects claims in construction. What is a defect under FIDIC contracts? As with many standard forms, FIDIC gives no express definition of ‘defect’. In general terms, a ‘defect’ arises where any part of the works or materials fails to comply with the contractual requirements (see Practice Note: Defects claims in construction — What is a defect? for further analysis). Clause 4.1 states that the Contractor must design, construct and complete the Works, and make good any defects, in accordance with the Contract (‘execute the Works’ is defined at clause 1.2(j)). Under clause 11, the Contractor is to ensure the Works meet the contractual condition by the end of the applicable Defects Notification Period (DNP), or as soon as reasonably...