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The Defects Liability Period starts when the Certificate of Completion is issued and continues for the period agreed to in the Contract.

During the Defects Liability Period, the Contractor has to obey all written instructions from the Engineer to carry out repairs and fix any defects which appear in the Permanent Works, so that, at the end of the Defects Liability Period, the Permanent Works are in the condition required by the Contract.

If the Contractor does not, due to his own fault, finish the repair work or fix the defects by the end of the Defects Liability Period, the Defects Liability Period will continue until all work instructed by the Engineer is done.

Who is responsible for the cost of carrying out the Engineers instructions during the defects liability period?

The Contractor will carry the cost if the Engineer decides that the Repairs or fixes are necessary because of the Contractor’s fault.
In other cases, the Employer will pay.

What if the Contractor ignores the Engineer’s instructions?

If the Contractor fails to obey a written instruction from the Engineer for 28 days, the Employer will have the right to carry out the necessary work himself or employ someone else to do it.

If this happens, the Contractor will be responsible for:

the whole cost of carrying out the necessary work, if the work was due to his own fault;

any additional cost that the Employer suffers by having to do the work himself or through others, if the work was not due to his own fault.

← What is ‘Practical Completion’? How Does a Contractor Claim For An Extension of Time? →

Help! What construction insurance do I need?

by Dan Payton | October 20, 2020 | Construction Liability, Contractors All Risk, Guarantees, Professional Indemnity, Trade Credit | 0 Comments

Understandably this can be a challenge as there is a myriad of cover available in the construction insurance landscape.

Let’s quickly unpack 5 Construction Insurance options for you.

What is Plant All Risk Insurance?

by Dan Payton | July 31, 2018 | Contractors All Risk | 0 Comments

Your onsite machinery (plant) is vulnerable to a number of problems such as breakdowns, vandalism and theft. Missing a project deadline can be bad news for your bottom line as well as your reputation. Plant All Risk Insurance covers you for loss of, or damage to, construction plant and equipment whilst in storage, transit, on the contract site or being use as a tool of trade.

Why is a Contract Works Policy Necessary?

by Dan Payton | June 28, 2018 | Contractors All Risk | 0 Comments

When it comes to planning a new construction project, insurance doesn’t always get the priority it requires, with contractors often wondering whether it is really necessary to take out a contract works policy at all. Very often the contract works policy is arranged at the last minute, or even after the project has already started.

No good deed goes unpunished

by Dan Payton | July 26, 2021 | Construction Liability, Contractors All Risk | 0 Comments

Employing smaller companies as sub- or independent contractors gives your own business more flexibility and allows local contractors to expand their business. But, did you know that as the client, you might be held civilly liable for any costs or compensation in case of work-related injuries or illness?

When a Disgruntled Employee Sabotages Your Structure…

by Dan Payton | October 15, 2015 | Contractors All Risk | 0 Comments

Does Contractors Liability on the Contractors All Risk policy cover damages to a structure, caused by a disgruntled employee’s pre-meditated sabotage?

What is not covered by a Contractors All Risk Policy?

by Dan Payton | July 31, 2018 | Contractors All Risk | 0 Comments

The main part of the Contractors All Risks insurance is the Contract Works section which provides cover for the property being worked on (e.g. new house, etc.). But it’s important to be aware of what’s not covered by a contractors all risk policy, these are just a few examples:

Special project delay insurance for special risks

by Dan Payton | August 23, 2021 | Construction Liability, Contractors All Risk | 0 Comments

You know that there are many risks associated with running a construction company. After civil unrest wreaked havoc in South Africa in June and July this year, you may be asking yourself: “What would happen if we should have to temporarily close our construction sites because of civil commotion, public disorder, rioting, looting, labour disturbances, strikes, a lockout – or even an act of terrorism?”

Are you ready for the summer shut down?

by Dan Payton | December 14, 2022 | Construction Liability, Contractors All Risk, News & Updates, Plant All Risks, Plant Insurance | 0 Comments

As a responsible construction company owner, you know the importance of insuring your plant and making sure that your other necessary policies are in place with CivilSure. But did you know that the number of instances of – and the size of – liability claims litigation is higher than ever, and climbing?

Contractors All Risk policy – Should You Put Your Name On It?

by Dan Payton | September 2, 2015 | Contractors All Risk | 0 Comments

Dirk Gouws (Engineering Insurance expet, AC&E Engineering Underwriting Managers) explains the meaning of having your name on a Contractors All Risk policy.

What Are Latent Defects?

by Dan Payton | July 23, 2018 | Contractors All Risk | 0 Comments

A Latent Defect is a defect that is not detected by ordinary inspection, but lies hidden until sometime later, when it’s discovered because it causes a problem that everyone can see. An example of latent defects would be weak concrete in part of a bridge column, that looks the same as strong concrete, but collapses when a heavy truck drives over the bridge.