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Handover & Completion · Mandatory · Completion

Making Good Defects Certificate

A certificate issued at the end of the defects liability period confirming all notified defects have been made good.

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 — formal certificate required to close the defects liability period
Issued byContract Administrator (post-completion)
TriggersRelease of remaining retention monies held since practical completion
TimingIssued typically 12–18 months after practical completion, at the end of the defects liability period

1. Making Good Defects Certificate — Closing the Defects Chapter

The Making Good Defects Certificate is the formal contractual document that confirms all defects notified during the defects liability period have been rectified to the Contract Administrator's satisfaction. It marks the formal closure of the defects chapter of the project and triggers the release of the remaining retention monies held by the employer since practical completion. For the contractor, this certificate represents a significant financial milestone — the final tranche of retention, often a substantial sum, is released upon its issue.

The certificate is issued by the Contract Administrator following a final inspection of the works at or after the end of the defects liability period. The Contract Administrator must be satisfied that all defects that were notified to the contractor during the DLP have been made good, that the remedial work is of an acceptable standard, and that the works are in the condition required by the contract. The certificate is not issued automatically — it requires the Contract Administrator's active inspection and professional judgment.

It is critically important to understand that the Making Good Defects Certificate does not extinguish the employer's right to bring claims for latent defects — defects that were not apparent at the time of the DLP inspection but which manifest later. The limitation period for contractual claims continues to run: 6 years from the date of practical completion for contracts executed under hand, and 12 years for contracts executed as deeds. The Building Safety Act 2022 has extended limitation periods for certain building safety defects in higher-risk buildings, with retrospective periods of 15 years and prospective periods of 30 years.

Latent defects remain actionable

The Making Good Defects Certificate does not extinguish claims for latent defects — the limitation period continues. Contracts executed under hand carry a 6-year limitation period from practical completion; contracts executed as deeds carry a 12-year period. The Building Safety Act 2022 extends some limitation periods for building safety defects in higher-risk buildings to 15 years (retrospective) and 30 years (prospective). The certificate closes the DLP mechanism, not the contractor's overall liability.

2. Certificate Contents

The Making Good Defects Certificate must contain the following information to ensure it is contractually valid and provides a complete record of the defects closure process.

ItemDetails
Project detailsFull project name, site address, and project reference number. These must match the contract documents, the Practical Completion Certificate, and the DLP notice.
PartiesThe employer, the contractor, and the Contract Administrator, with full names and registered addresses as stated in the contract.
PC dateThe date of practical completion as stated on the Practical Completion Certificate. This is the reference date from which the defects liability period was calculated.
DLP period and end dateThe duration of the defects liability period (e.g. 12 months) and the date on which it expired. The certificate should confirm that all defects were notified within the DLP.
Schedule of defectsA reference to or attachment of the schedule of defects that were notified to the contractor during the DLP, together with confirmation that each defect has been made good. The schedule should record the date each defect was notified, the date remedial work was completed, and the date it was signed off.
CA inspectionConfirmation that the Contract Administrator has carried out a final inspection of the works and is satisfied that all notified defects have been made good to an acceptable standard. The date of the final inspection should be recorded.
CertificateThe Contract Administrator's formal certification statement confirming that, in their professional opinion, the contractor has made good all defects notified during the defects liability period in accordance with the contract.
Retention releaseA statement confirming that the issue of this certificate triggers the release of the remaining retention monies in accordance with the contract. The certificate should state the amount of retention to be released or cross-refer to the quantity surveyor's final account for the precise figure.
CA signatureThe Contract Administrator's signature and date, confirming the formal issue of the certificate.
DistributionThe certificate must be issued to all parties entitled to receive it: the employer, the contractor, and the quantity surveyor. Copies should be retained on the project file as a permanent record.

3. Common Mistakes

1

Issuing the certificate before all defects are made good

The Making Good Defects Certificate must not be issued until the Contract Administrator is satisfied that every notified defect has been rectified to an acceptable standard. Issuing the certificate prematurely triggers the release of the remaining retention, removing the employer's financial leverage to ensure any remaining defects are rectified. Once the retention is released, the employer's only recourse for outstanding defects is a contractual claim — which is significantly more difficult and expensive to pursue.

2

No final inspection

The certificate must be based on an actual inspection of the works by the Contract Administrator, not on the contractor's assurance that defects have been made good. A desktop review of the defects register is not sufficient. The Contract Administrator must physically inspect each defect location and satisfy themselves that the remedial work has been carried out to the required standard. Photographs should be taken as a record of the condition of the works at the time of the final inspection.

3

Missing the 14-day window

Under JCT contracts, the Contract Administrator must issue the Making Good Defects Certificate within 14 days of the date on which the contractor's obligation to make good defects expires (i.e. within 14 days of the end of the DLP, provided all defects have been made good). Failing to issue the certificate within this window can give rise to disputes about whether the retention should have been released, and may expose the Contract Administrator to a claim for breach of duty.

4

Conflating with the Final Certificate

The Making Good Defects Certificate and the Final Certificate are two separate documents with different purposes and different consequences. The Making Good Defects Certificate confirms that defects have been made good and triggers the release of the remaining retention. The Final Certificate is issued later, after the final account has been agreed, and confirms the final contract sum. Issuing one does not fulfil the requirement to issue the other. Both must be issued separately and at the correct time.

5

Contractors not conducting their own inspections

Before inviting the Contract Administrator to carry out the final DLP inspection, the contractor should conduct their own thorough inspection to verify that all notified defects have been properly rectified. Relying on the Contract Administrator's inspection as the first check is poor practice — if the Contract Administrator finds defects that have not been made good, the inspection must be repeated, causing delay to the release of retention and eroding professional confidence in the contractor's quality management.

4. Frequently Asked Questions

What is the difference between the Making Good Defects Certificate and the Final Certificate?

The Making Good Defects Certificate and the Final Certificate are two distinct contractual documents. The Making Good Defects Certificate is issued at the end of the defects liability period and confirms that all notified defects have been made good. It triggers the release of the remaining retention. The Final Certificate is issued later, after the final account has been agreed between the parties. It confirms the final contract sum and has a conclusive effect under JCT contracts — it is treated as conclusive evidence that the works have been properly carried out in accordance with the contract, unless proceedings have been commenced before it was issued. The Final Certificate typically follows the Making Good Defects Certificate by several months, depending on how long the final account takes to agree.

What are the limitation periods for defect claims after the certificate is issued?

The Making Good Defects Certificate does not extinguish the employer's right to bring claims for latent defects. The limitation periods are: 6 years from the date of practical completion for contracts executed under hand (simple contracts), and 12 years from the date of practical completion for contracts executed as deeds. The Building Safety Act 2022 has introduced extended limitation periods for claims relating to building safety defects in higher-risk buildings — 15 years retrospectively (for defects existing before 28 June 2022) and 30 years prospectively (for defects arising after that date). These extended periods apply to claims under section 1 of the Defective Premises Act 1972 and the new section 2A introduced by the BSA 2022.

What happens if the contractor disputes that an item is a defect?

If the contractor disputes that a notified item is a defect (for example, arguing that it is a maintenance issue or that the damage was caused by the employer), the Contract Administrator must exercise their professional judgment to determine whether the item constitutes a defect under the contract. If the dispute cannot be resolved through the Contract Administrator's determination, the parties may need to refer the matter to adjudication, arbitration, or litigation, depending on the dispute resolution provisions in the contract. In the meantime, the Contract Administrator should not issue the Making Good Defects Certificate until the disputed item is resolved, as doing so would trigger the release of retention.

Can the employer withhold retention if defects are not made good?

Yes. The remaining retention is held as security for the contractor's obligation to make good defects during the defects liability period. If the contractor fails to make good notified defects, the employer is entitled to withhold the retention. Under JCT contracts, if the contractor fails to make good defects within a reasonable time, the employer may engage others to carry out the remedial work and deduct the cost from the retention. However, the employer must follow the correct contractual procedure for withholding or deducting from retention, including issuing any required pay less notices under the contract and the Housing Grants, Construction and Regeneration Act 1996.

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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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