Agreements for lease for construction lawyers—defects and dispute resolution
Agreements for lease for construction lawyers—defects and dispute resolution

The following Construction guidance note provides comprehensive and up to date legal information covering:

  • Agreements for lease for construction lawyers—defects and dispute resolution
  • Defects
  • Dispute resolution

This Practice Note looks at how an agreement for lease with development obligations may require the landlord to remedy defects in the works. It also looks at whether adjudication under the Housing Grants Construction and Regeneration Act 1996 (HGCRA 1996) applies to agreements for lease, and looks at other ways in which the landlord and tenant may resolve disputes under an agreement for lease.

Defects

Defects in the works, to a greater or lesser extent, are a feature of most construction projects. Very minor defects will be dealt with by a ‘snagging list’, which may be rectified after practical completion, but there may also be serious defects, whether in the design or construction, which can threaten the entire structural integrity of the building. Some ‘patent’ defects will be obvious before practical completion and the contractor will be required to rectify them before a practical completion certificate is awarded (see Practice Note: Latent defects regarding patent and latent defects). Most tenants will require that they are allowed to participate in the pre-practical completion inspections and that they are able to make representations if they disagree that practical completion should be awarded. For more information on practical completion in the context of agreements for lease see Practice Note: Agreements for lease for construction lawyers—practical completion.

Many defects, however, only appear following completion of