FIDIC

The Defects Liability Period Under FIDIC — Contractor Obligation and Process

The defects liability period is when the contractor remains responsible for quality — a contractual mechanism giving the employer time to identify defects and require their remedy before final release of the contractor.

6 min read · Updated 23/05/2026

In this article

1. The Defects Liability Period — Purpose and Duration
2. The Contractor’s Obligation to Remedy
3. Notification and the Schedule of Defects
4. The Contractor’s Right to Remedy
5. Access and Cooperation Requirements
6. Failure to Remedy — Employer’s Remedies

Key takeaway

The contractor’s obligation to remedy defects is strict and non-delegable — the contractor must respond promptly to defect notifications and complete remediation within a reasonable time. The employer’s right to engage third parties to remedy defects arises only after proper notification and an unremedied default. Both procedural compliance and substantive performance are required.

1. The Defects Liability Period — Purpose and Duration

FIDIC Red Book 2017, Clause 11 defines the Defects Liability Period (DLP) as the period during which the contractor remains responsible for remedying defects in the works. It commences on the date of the Certificate of Completion (practical completion) and runs for a period specified in the contract — typically 52 weeks (one year), but this can vary.

The purpose of the DLP is to give the employer and the engineer time to observe the works under actual use conditions, identify any defects that emerge, and require their remedy before releasing the contractor from all obligations. The DLP is not a warranty period in the general sense — it is a contractually defined mechanism for defect management.

At the end of the DLP, the engineer issues a Final Certificate of Defects Remedied (or equivalent), confirming that all notified defects have been addressed. At this point, the contractor’s primary DLP obligations end, and the second half of retention is released.

2. The Contractor’s Obligation to Remedy

Under FIDIC Clause 11.1, the contractor is obliged to rectify (remedy) any defects that appear during the DLP. The obligation is strict: the contractor must remedy defects in workmanship, materials, or design that do not meet the contract requirements.

What constitutes a “defect” for these purposes: work that does not meet the contract specification or drawings; workmanship below the standard of reasonable care and skill; materials that are sub-standard or unsuitable; or any failure to meet contractual performance requirements.

What does not constitute a defect under DLP: fair wear and tear (where the works are in use and minor degradation occurs naturally); design defects introduced by the employer (unless the contractor was required to warrant fitness for purpose); items that were outstanding and explicitly scheduled to be completed during the DLP; or matters that fall within the employer’s maintenance obligations.

The contractor cannot sub-delegate the remedy obligation: the contractor remains responsible for ensuring that defects are remedied, regardless of whether the contractor performs the work itself or engages others.

3. Notification and the Schedule of Defects

The engineer issues a Schedule of Defects (or Defects List) not later than 14 days after the end of the DLP, identifying all defects that the engineer believes require remedy. This is the formal notification trigger for the contractor’s obligation.

However, defects that emerge during the DLP should be identified and communicated to the contractor during the period itself — not deferred until the end. The engineer should notify the contractor of defects as they are discovered, allowing the contractor to plan and execute remediation throughout the DLP.

The Schedule of Defects should be specific: it should describe each defect, its location, what action is required, and any particular urgency or priority. A vague schedule (“works are defective in quality”) is inadequate — the contractor is entitled to clear instruction on what is expected.

On receipt of the schedule, the contractor is obliged to remedy the listed defects within a reasonable time — which FIDIC does not define precisely but which is typically interpreted as a matter of days to weeks depending on the nature and urgency of the defect.

4. The Contractor’s Right to Remedy

The contractor has the right to remedy defects — this is the contractor’s primary obligation. The employer cannot simply engage third parties to remedy defects without first giving the contractor a reasonable opportunity to do the work itself.

The opportunity must be genuine: the contractor must receive notice, must understand what is required, and must be given sufficient time to mobilise and perform the work. An employer who denies the contractor this opportunity — by immediately engaging others without proper notification — is in breach of contract.

If the contractor fails to respond to a defect notification, the employer’s right to engage others arises only after the contractor has failed to remedy within a reasonable time. The sequence is: notification → reasonable opportunity → failure to remedy → engagement of third parties.

5. Access and Cooperation Requirements

The contractor is entitled to access the site and the works during the DLP to perform remediation. The employer must grant access, must not prevent the contractor from working, and must cooperate reasonably to facilitate remedy.

Where remediation requires access to parts of the building that are in use, or where remediation might disrupt the employer’s activities, the parties must work together to schedule the work. However, the contractor cannot be entirely denied access on the basis that remediation is inconvenient.

The contractor is also entitled to reasonable time to perform remediation. A defect that requires structural work or specialist expertise may require weeks to remedy — the contractor is entitled to this time, provided the work is progressing diligently.

6. Failure to Remedy — Employer’s Remedies

If the contractor fails to remedy defects within a reasonable time, the employer may engage third parties to perform the work and deduct the cost from amounts due to the contractor. This is the mechanism in FIDIC Clause 11.4: the contractor’s failure to comply with the Schedule of Defects within a reasonable time entitles the employer to employ others to carry out the work.

The cost of this third-party remediation is deductible from amounts due to the contractor. The cost must be reasonable — the employer cannot engage a premium contractor and charge the contractor for an inflated cost. The employer should obtain competitive quotes to establish reasonableness.

Alternatively, the employer can allow defects to remain unremediied and claim damages for diminution in the building’s value or its fitness for purpose. This is a different remedy from requiring remediation — it is available where remediation is not practicable or where the employer chooses to accept defects in exchange for a cost reduction.

Defects Liability Period Management

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