Rectification prior to completion of works

Where defects are discovered prior to practical completion, the contract usually requires the contractor to rectify the problem as soon as practicable. The cost will be covered by the contractor.

However, some contracts provide an opportunity for the principal to accept the defects. If the principal does decide to accept the defective work without rectification, there may be a change in the value of the works, triggering a contractual requirement to record that change as a deemed variation. This may then affect the amount received by the contractor for its work.

Contracts may provide for a testing regime whereby the contractor must make the site available for testing (and in some circumstances carry out the testing), for the purpose of ascertaining if there are defects. Generally if the works are found not to be defective, then the principal will pay for the testing, but if the works are defective, the contractor must both pay for the testing and rectifying the defect.