When you hire a contractor for a construction project, you expect the work to meet the agreed-upon quality. But what happens if you discover defects after completion? Here we explain what the contractor is required to do for construction defects, including hidden defects, and how you can hold them liable.
When you hire a contractor, the agreements are set out in a construction contract. This agreement describes what work the contractor will do, what materials will be used, when the work will be completed, and how much will be paid. Unfortunately, it sometimes happens that a contractor does not completely fulfill his agreements, resulting in defects in the completed work.
A crucial time to detect defects in the work is the delivery of the construction project. Upon completion of the work, the contractor indicates that the project is ready for inspection. The owner must then carefully inspect the work and immediately report any visible defects, such as cracks in walls, poorly placed bricks, or a leaking roof. After the client approves the work, the contractor is generally not liable for any visible defects. However, this does not mean that the builder's liability ceases.
After completion, the contractor may still be liable for defects that become apparent during the period of use. These are often minor construction defects that were not apparent at delivery. A maintenance period is often agreed between the parties. During this period, the contractor is obliged to repair any defects at his own expense. At the end of this period, a new inspection takes place to verify that all problems have been corrected. After this inspection, the contractor is no longer liable for defects, except for hidden defects.
Defects that come to light after completion or after the maintenance period and were not visible during the inspection are called hidden defects. Examples include leaks caused by construction defects or subsidence due to poor foundations. The contractor remains liable for such latent defects even after a long period of time. Additional warranty conditions are often agreed for such defects.
With the introduction of the Building Quality Assurance Act on January 1, 2024, contractors will be liable not only for hidden defects, but also for visible defects overlooked by the client during delivery. This law strengthens the client's position by further extending the contractor's responsibility. Note that this only applies to construction contracts entered into after January 1, 2024.
If you discover defects in the work, it is important to notify the contractor immediately. If the contractor does not respond or fails to correct the defects, you can issue a formal notice of default. In a notice of default, you describe the defects and give the contractor a reasonable time to correct them. If the contractor does not respond within that time or does not correct the problems, you can take legal action, such as seeking damages or having someone else do the repairs. It is wise to seek legal advice when taking these steps.
Contractor liability for latent and other construction defects is an important part of any construction project. Make sure you have clear agreements in the construction contract and conduct a thorough inspection upon completion. If you still find defects, it's good to know that the Construction Quality Assurance Act provides additional protection for you as a builder, provided the contract was entered into after January 1, 2024.
Have you discovered defects after the completion of your construction project and would like to know how to hold the contractor liable? Contact us for customized legal advice.
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