Defective Construction Work

Description

Defects are of fundamental importance because they affect the value of work done (and therefore the obligation to pay, or the right to receive payment); they may prevent work being regarded as complete; they may entitle purchasers (and sometimes third parties) to compensation; and they may even entitle purchasers to terminate the building contract or the appointment of professional consultants. The importance of the distinction between patent and latent defects often depends on the contractual terms. For example, it may not be permissible to certify completion if there are patent defects, or it may be that liability for loss is excluded in respect of latent, but not patent, defects. Further, whether defects are patent may be relevant to the duty to mitigate loss, and may engage the defence of contributory negligence. Finally, whether a defect is patent or latent may sometimes be relevant to the commencement of the relevant limitation period.

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