The following Construction practice note provides comprehensive and up to date legal information covering:
It is common in construction projects for defects to manifest or appear in the works. Most construction contracts require the contractor to return to site to rectify (also known as ‘make good’) defects which arise or are discovered during a specified period after practical completion of the works. This is typically referred to in the construction industry as the defects liability period (DLP), although the JCT contracts refer to it as the rectification period, NEC uses the term defects date and FIDIC refers to it as the defects notification period.
As the DLP relates to the rectification of ‘defects’, it is important to consider what this term covers. ‘Defect’ is not a term of art and there is no ‘standard’ definition of what constitutes a defect in building works. However, in broad terms, a defect is work which does not meet the standard or a specification required by the building contract. This can be due to fault(s) in the work, materials or design, or shortcomings in the quality of the work. For more detail on what a defect is, how defects can arise, and relevant case law, see Practice Note: Defects claims in construction—What is a defect?
A contractor’s obligation to make good defects during the DLP covers patent defects, ie those which have appeared or are
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Breach of statutory dutyThis Practice Note considers claims for damages for breach of statutory duty. For guidance on claims for damages for a negligent breach of duty of care outside a statutory duty, see Practice Notes:•Negligence—when does a duty of care arise?•Negligence—when is the duty of care
Escrow accounts and escrow agreementsThis Practice Note examines why parties involved in a construction project may enter into an escrow agreement (or escrow deed) to set up an escrow account. It looks at the benefits of paying funds into escrow, how an escrow account operates and the provisions
Arms length management organisations (ALMOs)An arms length management organisation (ALMO) is a not-for-profit company that provides housing services on behalf of a local housing authority (LHA). Usually an ALMO is set up by the LHA to manage and improve all or part of its housing stock with the LHA
Tenant's request for a new business tenancyThese drafting notes are for use when completing a tenant’s request for a new business tenancy under the Landlord and Tenant Act 1954. They are intended to be used when completing the prescribed form under the Landlord and Tenant Act 1954, Part 2 (Notices)
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