Rectification after completion of works

The contractor’s failure to perform work in accordance with the construction contract is a breach of contract and entitles the principal to sue the contractor for damages at common law.

However, most construction contracts include contractual mechanisms which:

• require the contractor to return to the site to rectify defects;
• nominate a defects liability period (‘DLP’) which is a period after practical completion during which the principal or its representative (usually the superintendent) may, by notice, require the contractor to rectify defects;
• entitle the principal to have a third party rectify the defect if the contractor does not follow the rectification notice; and
• allow the principal access to security or retention monies to pay for the rectification.