Glossary definition
Defects Liability Period
A contractual period, typically 6 to 12 months after practical completion, during which the building contractor is obliged to return to site and rectify any defects that emerge at no additional cost to the client. The defects liability period provides the developer and their purchasers with a warranty against construction defects.
Definition
A contractual period, typically 6 to 12 months after practical completion, during which the building contractor is obliged to return to site and rectify any defects that emerge at no additional cost to the client. The defects liability period provides the developer and their purchasers with a warranty against construction defects. Lenders may require evidence that a defects liability period is included in the building contract as part of their due diligence.
See also
Closely related terms.
Practical Completion
The stage at which a building project is deemed complete and fit for its intended purpose, even though minor snagging items may remain.
Building Regulations
The statutory standards that all building work in England and Wales must comply with, covering structural integrity, fire safety, energy efficiency, drainage, and accessibility.
Retention
A percentage of each construction drawdown held back by the lender as a safeguard against cost overruns or incomplete works, typically 5% to 10% of each drawdown amount.
Further reading
Guides that touch this term.
Guide
How Does Development Finance Work? A Complete Guide for UK Developers
A ground-up guide to how development finance is structured in the UK, covering loan mechanics, drawdown schedules, monitoring surveyors, and what lenders look for in your application.
5 min read readReadGuide
Legal Due Diligence in Development Finance: What Solicitors Check
Legal due diligence is the backbone of every development finance transaction. This guide explains what solicitors investigate, common issues that delay completions, and how to prepare your legal pack.
9 min read readRead
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