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Handover & Completion · Mandatory · Completion

Defects Liability Period Notice

A notice confirming the start and duration of the defects liability period.

Last reviewed: 29 March 2026 — This guide reflects UK law as of this date. JCT / Contract remains current with no amendments enacted as of 29 March 2026. Next scheduled review: 29 March 2027.

Legal basisJCT Standard Building Contract / NEC / Bespoke contract terms
StatusMandatory — the DLP notice must be issued at practical completion
Issued byContract Administrator
DLP periodTypically 12 months from the date of practical completion (contract-specific)
RetentionRemaining half of retention released at the end of the defects liability period, subject to all defects having been made good

1. The DLP Notice — Setting Clear Expectations After Handover

The defects liability period is the contractual window during which the contractor is obliged to return to site and rectify any defects that arise in the completed works after practical completion. It is not a period for completing outstanding work that should have been finished before practical completion was certified — that is a fundamentally different obligation. The DLP exists to address defects that manifest during the early life of the building, when materials, systems, and workmanship are subjected to normal use for the first time.

The DLP notice is issued at practical completion and sets out the terms under which defects will be notified, tracked, and rectified during the defects liability period. It establishes the process by which the employer or the Contract Administrator will notify the contractor of defects, the contractor's obligation to respond and carry out remedial work, and the timeline within which defects must be made good. The notice should also confirm the DLP start and end dates, the defect notification process, and the retention release schedule.

The remaining half of the retention monies is held throughout the defects liability period as security for the contractor's obligation to make good defects. This retention is released only when the Contract Administrator certifies that all notified defects have been made good — typically through the issue of the Making Good Defects Certificate at the end of the DLP. The retention provides the employer with financial leverage to ensure the contractor returns to site and rectifies defects promptly and properly.

Active defects management

Maintain a live defects register throughout the DLP — not a one-off list at the end. Defects should be recorded, notified to the contractor, tracked through to resolution, and formally signed off as they are rectified. A live register ensures nothing is missed and provides a clear record for the Making Good Defects Certificate at the end of the DLP.

2. DLP Notice Contents

The DLP notice should contain the following information to ensure all parties understand their obligations during the defects liability period.

ItemDetails
Project detailsFull project name, site address, and project reference number, matching the contract documents and the Practical Completion Certificate.
PartiesThe employer, the contractor, and the Contract Administrator, with full names, registered addresses, and contact details for defect notifications.
PC dateThe date of practical completion as stated on the Practical Completion Certificate. This is the date from which the defects liability period runs.
DLP start dateThe date on which the defects liability period commences. Under most standard form contracts, this is the date of practical completion.
DLP periodThe duration of the defects liability period as stated in the contract. The standard period is 12 months, but the contract may specify a different period. Some projects use 24-month DLPs for complex building services installations.
DLP end dateThe date on which the defects liability period expires, calculated from the DLP start date plus the DLP period. Defects notified after this date cannot be required to be rectified under the DLP provisions (although the employer may still have remedies under the general law).
Defect notification processThe procedure for notifying the contractor of defects: who may notify, how notification must be given (written notice, email, defects management platform), what information must be included (location, description, photographs), and the contractor's required response time.
What constitutes a defectA defect is any element of the works that does not comply with the contract requirements, whether by reason of materials, workmanship, or design (where contractor-designed). Defects include items that fail, deteriorate, or prove unfit for purpose during normal use. Damage caused by the employer's misuse or failure to maintain is not a defect.
Contractor's obligationThe contractor's obligation to make good defects notified during the DLP at the contractor's own cost, within a reasonable time, and to the satisfaction of the Contract Administrator. The contractor must carry out remedial work with minimum disruption to the employer's operations.
Retention scheduleConfirmation that the remaining half of the retention monies will be released upon the issue of the Making Good Defects Certificate, subject to all notified defects having been made good to the Contract Administrator's satisfaction.
CA signatureThe Contract Administrator's signature and date, confirming the issue of the DLP notice and the commencement of the defects liability period.

3. Common Mistakes

1

Not issuing the DLP notice at practical completion

The DLP notice should be issued at or immediately after practical completion. Failing to issue the notice means the contractor and the employer may not have a clear, agreed understanding of the defect notification process, the DLP dates, or the retention release schedule. This leads to confusion and disputes when defects arise.

2

Treating the DLP as an opportunity to complete outstanding work

The defects liability period is not a continuation of the construction phase. It is a period for rectifying defects that arise after practical completion, not for completing work that should have been finished before practical completion was certified. If substantial work was outstanding at practical completion, that is a certification problem — the DLP is not the remedy.

3

Not notifying defects within the DLP

Defects must be notified to the contractor during the defects liability period. If the employer or Contract Administrator fails to notify a defect before the DLP expires, the contractor's obligation to make good that defect under the DLP provisions may be lost. The employer may still have remedies under the general law (breach of contract, negligence), but these are more difficult and expensive to pursue than the straightforward DLP mechanism.

4

Failing to follow up on notified defects

Notifying a defect is only the first step. The employer or Contract Administrator must follow up to ensure the contractor responds within the required timeframe, carries out the remedial work to the required standard, and the defect is formally signed off as made good. A defects register that shows numerous items notified but never followed up is a failure of contract administration.

5

Releasing retention prematurely

The remaining half of the retention is held as security for the contractor's DLP obligations. It should not be released until the Contract Administrator is satisfied that all notified defects have been made good and the Making Good Defects Certificate has been issued. Releasing retention before defects are rectified removes the employer's financial leverage and makes it significantly harder to get the contractor to return to site.

4. Frequently Asked Questions

What is the default defects liability period?

Under JCT contracts, the default defects liability period (referred to as the "Rectification Period" in JCT 2016 editions) is 6 months from the date of practical completion if no period is stated in the contract particulars. However, it is standard practice to amend this to 12 months, and 12 months is the most common DLP period on UK construction projects. Some projects specify longer periods — 24 months is not uncommon for complex building services installations where defects may take longer to manifest. The DLP period should be stated in the contract particulars and confirmed in the DLP notice.

Is the contractor's liability limited to the DLP?

No. The defects liability period provides a convenient contractual mechanism for dealing with defects, but it does not limit the contractor's overall liability. After the DLP expires, the employer can still bring a claim for breach of contract (for defective work) within the limitation period — 6 years from practical completion for contracts executed under hand, or 12 years for contracts executed as deeds. The Building Safety Act 2022 has also extended limitation periods for certain building safety defects in higher-risk buildings to 15 years (retrospective) and 30 years (prospective).

Can the employer engage a third party to rectify defects during the DLP?

Generally, the employer should give the contractor the opportunity to make good defects during the DLP. However, if the contractor fails to respond to a defect notification within a reasonable time, or fails to carry out remedial work to an acceptable standard, the employer may be entitled to engage a third party to carry out the work and recover the cost from the contractor (usually by deduction from the retention or by way of a claim). The employer should take legal advice before engaging a third party, as doing so without giving the contractor adequate opportunity to remedy the defect could prejudice the employer's position.

What is the difference between a defect and a maintenance issue?

A defect is a failure of the works to comply with the contract requirements — it arises from defective materials, poor workmanship, or inadequate design. The contractor is responsible for rectifying defects at the contractor's own cost. A maintenance issue arises from normal wear and tear or the passage of time — it is not the result of any failure by the contractor. Maintenance is the employer's responsibility. The distinction can sometimes be difficult to draw, particularly for items such as sealant failure, paint deterioration, or component wear. Where there is a dispute about whether an item is a defect or a maintenance issue, the Contract Administrator's professional judgment is the first point of reference.

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This guide is for general informational purposes only and does not constitute legal advice. While every effort is made to ensure accuracy, regulations change and individual project circumstances vary. Construction Suite is a trading name of Xzist Digital Ltd, registered in England and Wales.

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