Defect Liability Period (DLP): Ensuring Post-Handover Accountability

Defect Liability Period (DLP): Ensuring Post-Handover Accountability in Construction

Completing a construction project is a major milestone—but what happens if something goes wrong after the handover? That’s where the Defect Liability Period (DLP) comes into play. This crucial phase of the post-construction lifecycle ensures that the contractor remains responsible for fixing any defects that arise within a defined time period after project delivery.

Let’s explore the significance of the DLP, how it works, and why it’s essential for builders, clients, and facility managers alike.

What Is the Defect Liability Period (DLP)?

The Defect Liability Period (DLP) is a contractual period, typically 12 to 24 months after final handover, during which the contractor is legally obligated to rectify any construction-related defects or faults that appear in the building.

It ensures the project performs as intended, supports occupancy readiness, and protects the client from unexpected post-handover issues.

Why Is DLP Important?

Construction defects can surface even after thorough building commissioning and testing. The DLP acts as a safeguard for the client and ensures:

• Accountability for poor workmanship or materials

• Cost-free defect resolution

• Continued operational quality

• Smooth transition into long-term occupancy

It also reinforces trust between stakeholders and encourages high standards during the execution to occupancy phase.

Types of Defects Covered Under DLP

1. Structural Defects
   – Cracks in walls, ceilings, or floors
   – Foundation issues or roof leaks

2. Mechanical & Electrical Defects
   – Faulty HVAC, elevators, or pumps
   – Short circuits or power failures

3. Plumbing & Drainage Issues
   – Leakage or poor water pressure
   – Clogged or faulty drainage systems

4. Finishing Defects
   – Paint bubbles, tile cracks, or warped doors
   – Incomplete or uneven flooring

Note: Natural wear and tear or damage due to misuse are not covered under Defect Liability.

DLP vs. Warranty: What’s the Difference?

The DLP is a legal and project-based assurance, while a warranty is usually product-specific.

DLP Workflow: How It Works

1. Final Handover

After construction and building commissioning, the client formally takes over the site.

2. DLP Begins

The clock starts on the agreed Defect Liability Period, defined in the contract (usually 12 or 24 months).

3. Defect Reporting

If defects are observed, the client reports them to the contractor through a formal process, often using a defect register or ticketing system.

4. Defect Rectification

The contractor is required to inspect and resolve the issue at their own cost within a specified time.

5. Final DLP Closure

At the end of the DLP, if all defects are cleared and no issues remain, the DLP certificate is issued, and the contractor is released from further obligations.

Best Practices for Managing DLP

• Maintain a defect log – Track all issues reported during DLP for transparency.

• Use digital tools – Automate notifications and timelines using FM software.

• Train the client’s FM team – Ensure they know how to identify and report defects properly.

• Schedule periodic inspections – Prevent small issues from turning into major failures.

• Clearly define DLP terms in the contract – Avoid future disputes.

AMS India’s Role in Defect Liability Management

At AMS India, we go beyond construction—we ensure peace of mind. Our detailed DLP management includes:

• Structured defect reporting mechanisms

• Quick resolution turnaround

• Transparent coordination with FM teams

• Seamless support throughout the post-handover phase

Contact AMS India to partner with a team that manages your project even after delivery.

Legal Reference

For guidance on construction contracts and DLP obligations in India, refer to the CPWD Manual, which outlines public sector norms for defect liability, final payments, and project closeouts.