Defects can occur because the work was not done in a „good and artisanal manner“ in accordance with good practices or a particular design, or because the wrong materials were used – issues that would normally fall under the responsibility of the contractor and his supply chain. Alternatively, the designer may be to blame because a particular design doesn`t work as it should. In the commonly used design and construction scenario, the contractor would normally be primarily responsible for both types of defects – although they may have consecutive claims against their designers and supply chain. When a work is defective, there is usually, but not always, a breach of contract. The contractor`s obligation to remedy a defect within a repair period applies only to the defects notified. In practice, however, all defects known to the contractor must be reported in accordance with Article 42.2 above. If the contractor does not notify him, he will violate the contract and will be prevented by law from profiting from its violation. It goes without saying that those who pass on their commitments throughout a supply chain should seek equal responsibility for defects. Most of us will see a lack of construction work; Steel structures may rust or a window may leak.

However, a contractor is liable only if the defect is based on its breach of contract; The rusty steel mill may be caused by a defect in the engineer`s design, in which case the work could be described as „defective“ but is not a „defect“ under the contract. A closer reading of the contract shows that this is not the case, since such work would be covered by the first point, because if the contractor`s design does not match the factory information, it is a defect, whether or not it is „accepted“ by the project manager. If the incomplete work results from the termination of the contract before completion, the circumstances of the termination are also important with regard to the incomplete work, because if the contract has been terminated by the customer, the owner can claim damages for all costs associated with the completion of the work, but if the owner has terminated the contract, no such claim can be made: Torua Pty Ltd v. Sariklis [2012] VCAT 144. Often, it is important to distinguish between obvious and latent vices. A patent defect is a defect that is recognizable during or before the apparent practical completion or during the period of liability for defect. In the past, courts have ruled that obvious defects must be evident during the inspection, but do not necessarily have to have been seen by those conducting the examination. A hidden defect is contractually a defect that has remained hidden in the factory and must not be noticeable for many years. Subsection 14.6 (Issuance of Interim Payment Certificates), item (a), states: „If work delivered or performed by the Contractor is not in conformity with the Contract, repair or replacement costs may be withheld until the repair or replacement is completed.“ Defects can be „patent“ or „latent“. Patent defects are those that can be detected by proper inspection. Hidden defects are those that cannot be detected by proper examination, for example, foundation problems that may not appear until several years after completion, when settlement leads to cracks in the building.

When a hidden defect becomes apparent, it is patented rather than latent. Much depends on the effect of a wrong setting. If this led the school to enter another person`s land across the border, it is virtually certain that the offensive part of the school would have to be demolished and converted to a different design, unless an agreement can be reached with the neighboring owner. This could be very costly for the contractor if the problem was actually an incorrect setting and not fake design drawings. The problems associated with compensation and mitigation bring us to the limits of these rights under the Housing Subsidies, Construction and Regeneration Act. The Law provides that a party to a construction contract may not withhold payment after the last due date unless it effectively notifies the other party of its intention to withhold payment, including the reasons for doing so. The aim is to prevent contractors from abusing their position to wrongly withhold amounts owed to subcontractors, who generally do not have the quick or cheap means to challenge the withholding. The contractor denies engineers the right to deduct defects in provisional certificates. These deductions apply to work that does not comply with the contract. The customer has a security of execution and a reserve of 5%, so the entrepreneur claims that he would have another disadvantage of deductions for NCRs.

If a defect occurs after completion within a contractual warranty period, the employer is likely entitled to require the contractor`s defect to be eliminated. In some forms, this is the case even if it is not clear that the defect is the responsibility of the contractor, although the contractor is entitled to payment if it is proven that the defect is not responsible for it. In addition, it is advisable to get an expert opinion that can give their opinion on the fact that the work is defective and provide an estimate of the cost of repairing the work. An experienced construction lawyer can advise you further when getting an expert opinion. Purely economic loss: Defects in buildings can also cause considerable problems for owners who take responsibility for a building without having purchased the corresponding work. Indeed, there would be no claim in the contract unless this new owner is granted separate rights or a guarantee. .