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Monument

Process and engagement

What happens during the defects liability period?

After practical completion a defined period runs during which the contractor rectifies defects in the works. It is a contractual mechanism, not a warranty, and it works best when the defects list is agreed at handover and the responsibility for each item is unambiguous from the start.

Handover is not the end of a contract. A defects liability period runs after it, and how that period goes says more about a contractor than the construction phase does.

What the period is

At practical completion the works are usable for their intended purpose, and a defined period begins during which the contractor is obliged to rectify defects in the works.

It is a contractual mechanism with a start date, an end date and a defined scope. It sits alongside, rather than instead of, any statutory obligations that apply.

Security is typically held during the period and released at its expiry, which is the commercial lever that makes the mechanism work.

The defects list is agreed at handover

The single most useful thing a client and contractor can do is walk the works together at practical completion and agree the list.

Items found together get resolved. Items raised one at a time over the following months become correspondence, and correspondence is where the relationship deteriorates.

An agreed list also separates defects from variations, which is the distinction most disputes actually turn on. A defect is work not delivered to the contracted standard. A change of mind after handover is a variation, and treating one as the other benefits nobody.

Fair wear and misuse

On a school, a park or a public facility, the works go into heavy use immediately. Some of what appears in the first year is wear rather than defect, and some of it is damage.

That distinction is easier to make when the handover documentation is good. Photographs at completion, the operations and maintenance information, and clear guidance on what the asset needs, all reduce the ambiguity.

Response times matter more than the list length

Every project has a defects list. What distinguishes contractors is how quickly items are attended and how many attendances it takes.

On operational sites there is an additional constraint. Rectification in a school or a station is subject to the same access limitations as the original work, so it has to be scheduled into windows rather than done on demand. A contractor with the accreditations and the site knowledge already in place returns more easily than one who has moved on.

What a client should agree before it starts

Who receives defect notifications and in what form. What response time applies, and whether anything is treated as urgent. Who attends the joint inspection at the end of the period. And what documentation is handed over at completion, because that is what the whole period is assessed against.

Monument delivers as a principal contractor with directors on the project, which means the person accountable during construction is the person accountable afterwards. That continuity is most of what makes this period straightforward.

Monument Environments

Boutique principal contractor for NSW government and institutional clients, specialising in construction inside operational environments that cannot be shut down. Established 2006. ISO 9001, 14001 and 45001 certified. Prequalified SCM 0256 and SCM 1461.