Glossary
DLP (Defects Liability Period)
Plain-Language Definition
A contractual period (typically 12-24 months after practical completion) during which the contractor is obligated to return and rectify any defects in construction work at no additional cost to the building owner.
Technical Context
DLP commences at practical completion (or substantial completion in US terminology) and typically lasts 12 months for general construction, though critical systems may have extended periods: waterproofing (5-10 years), structural (10+ years), major MEP equipment (manufacturer warranty, typically 1-5 years). During DLP, the owner should conduct systematic inspections at months 1, 6, and 11 to identify and notify defects. Retention money (typically 5% of contract value) is held as security — half released at practical completion, remainder at end of DLP. Defects must be distinguished from fair wear and tear, misuse, and items outside the original scope. A comprehensive defects list (snagging list) should be maintained with photographic evidence, notification dates, and rectification status.
Why It Matters
DLP is the owner's contractual protection against construction defects. Failure to identify and formally notify defects within the DLP period may release the contractor from obligation to rectify. Systematic inspection during DLP can save significant future maintenance costs.
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