Glossary

Defects liability period (DLP)

The defects liability period is the period after practical completion, commonly twelve months, during which the contractor must return to rectify defects in their work that the owner notifies. Part of the retention is usually held until it ends.

CONSTRUCTION DEFECT GLOSSARY·UPDATED OCTOBER 2026
Where the word is used

Australian and British contract language. NEC contracts call it the defects correction period; many American contracts use a one-year warranty or correction period. The mechanism is the same: notified defects, a duty to return, money held behind it.

On site

The DLP fails because the project team demobilises at completion and the building keeps producing defects into a process with nobody on it. Owners email the office, the email is forwarded, nothing has a number or a due date, and at month eleven somebody reconstructs a list for the final inspection.

On the record

How IssuesId holds it

IssuesId keeps the handover register running after completion. Residents report on a QR card, each item is typed Warranty or Maintenance, the builder is still the party it is issued to, the owner’s side closes, and the Post PC Issues report in the catalogue lists what arrived after completion.

Asked alongside

Two questions people ask

How long is a defects liability period?
Commonly twelve months from practical completion in Australian and British building contracts, though contracts vary and some run six months or two years. The contract states the period; where a defect is rectified during it, some contracts restart the period for that item.
What happens at the end of the defects liability period?
A final inspection, rectification of anything notified, and release of the remaining retention once the certifier is satisfied. Defects notified in time but not yet fixed remain the builder’s obligation; defects that emerge afterwards are a warranty or statutory matter rather than a contract item.
Related terms

Definitions describe common usage and the usual shape of standard-form contracts. Your contract and your jurisdiction’s building law set the terms that apply to your job. The whole list is at the glossary.

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