Handover
Defects liability period: what it covers and what it does not
The short answer
The defects liability period, called the rectification period in JCT, is the window after [practical completion](/blog/what-is-practical-completion) during which the contractor must return and put right defects that appear. It is commonly six or twelve months. It is a right as much as an obligation: the contractor gets to do the work itself rather than pay somebody else’s bill for it. When the period ends and the listed items are closed, the certificate of making good is issued and the remaining retention is released. Liability does not end there. Latent defects remain actionable for six years from breach under a simple contract, or twelve under a deed.
At a glance
- Also called
- Rectification period (JCT), defect correction period (NEC)
- Starts
- At practical completion
- Typical length
- 6 or 12 months
- Covers
- Defects appearing in the period, from the contract works
- Does not cover
- Fair wear and tear, misuse, employer-supplied items
- Ends with
- Certificate of making good
- Releases
- The remaining retention
- Liability after
- 6 years simple contract, 12 years deed
What counts as a defect?
Work that does not comply with the contract: the specification, the drawings, the standard of workmanship required, or the statutory standards that applied. That is a narrower category than "anything the client is unhappy about", and the distinction takes up most of the period.
| Item | Contractor’s? | Why |
|---|---|---|
| Cracked plaster from drying shrinkage | Usually yes | Workmanship or accepted making-good |
| Door binding after a wet winter | Usually yes | Within tolerances the contract set |
| Boiler failure at month nine | Depends | Manufacturer warranty may answer first |
| Scuffed paint from the client moving in | No | Not a defect; damage after handover |
| Blocked gutter, never cleared | No | Maintenance, not a defect |
| Employer-supplied worktop that fails | No | Not the contractor’s material |
NoteMost arguments in the period are about the last three rows. A dated snagging list taken at handover is what separates a defect from damage caused after it.
Free toolRetention calculatorThe end of the period releases the balance. Enter the completion date and it gives you both dates.Why is it a right and not only an obligation?
Because the alternative costs the contractor far more. Without the clause, an employer finding a defect could engage anybody to fix it and claim the cost as damages, at prices the contractor never agreed and with no chance to inspect.
The period gives the contractor the first opportunity to put the work right using its own people and its own subcontractors, at its own cost base. An employer who bypasses that and brings somebody else in generally cannot recover the full cost, because they denied the contractor the chance to mitigate.
An employer who calls somebody else in without asking the contractor first usually recovers less, not more.
How does the money work?
The remaining retention, typically half of the original percentage, is held through the period. When the certificate of making good is issued it is released. See retention in construction contracts for how the two releases are structured.
This makes an open defects list a cash-flow problem rather than a quality one. On a £500,000 contract with 5% retention, £12,500 sits against whatever remains on the list, and it stays there while three disputed items go unresolved for months.
The practical consequence is that closing items quickly is worth more than arguing about whether they were defects. An item worth £200 of labour holds thousands of pounds of retention while it is open.
What happens when the period ends?
- 01The contract administrator inspects. Against the list, and against anything else that has appeared.
- 02Outstanding items are notified. Usually as a schedule, with a date to complete.
- 03The contractor completes them. Or the employer has them done and deducts the reasonable cost.
- 04The certificate of making good is issued. This is the trigger, and it is a certificate rather than a date.
- 05Final retention is released. And the final account can be concluded.
The certificate does not end liability. It ends the obligation to return under this clause. A defect that was hidden and appears in year four is a matter for the limitation period, not the rectification period.
Questions
Frequently asked
How long is the defects liability period?
Whatever the contract states, commonly six or twelve months from practical completion. Twelve is usual on buildings with heating and cooling, so the installation is seen through a full cycle of seasons.
Does the period restart when a defect is fixed?
Not usually for the whole works. Some contracts restart it for the repaired element only. Check the clause, because a rectification that restarts the period on everything would delay the entire retention release.
Who pays to fix a defect during the period?
The contractor, where it is a genuine defect in the contract works. The employer pays where the item turns out to be damage, misuse, wear or maintenance.
Is the contractor liable after the period ends?
Yes, for latent defects. Six years from the breach under a simple contract and twelve under a deed. The rectification period is a right to return, not a limit on liability.
Can retention be released before the certificate of making good?
Only if the contract allows it or the parties agree. Retention held past the point the contract says it should be released is a debt, and there is a growing appetite to challenge it.
Read next
What is retention, and how do you get it released?
Typical percentages, the two release points, and the notices that actually work.
Estimark: payment applications & retention
Construction Act dates, pay less deadlines and retention release on one screen.
Estimark: reactive maintenance
Priority SLAs measured from report time, with Awaab’s Law presets.
Applications for payment vs invoices
Two different documents with two different legal effects. Confusing them costs money.
Retention calculator
What is held, what the cap does to it, and the two dates the money comes back.
Snagging list template
Numbered items with a location, a trade and the sign-off that makes retention release due.
Run the paperwork once.
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