Construction & DevelopmentDefects Liability Period
Synonyms: DLP، Defects Notification Period، Maintenance Period، Rectification Period
Last updated: 2026-09-25
Short Definition
The Defects Liability Period (DLP) is a contractual period, typically 12 months from provisional acceptance of the works, during which the contractor must repair or replace at its own cost any defects that appear in materials, equipment or workmanship.
Overview
The Defects Liability Period (DLP) is a contractual period, typically 12 months from provisional acceptance of the works, during which the contractor must repair or replace at its own cost any defects that appear in materials, equipment or workmanship. It is usually tied to a retention deducted from payments or a bank guarantee released only when it ends.
In Saudi Arabia its basis depends on the type of project. For public construction contracts, Art. 128 of the Implementing Regulation of the Government Tenders and Procurement Law provides that the project remains under the contractor's warranty for no less than one year from provisional acceptance, that the warranty for outstanding items runs from their acceptance, and that the contractor must maintain, repair and replace during that year, failing which the work is done at its expense; the final guarantee is extended if the contractor delays warranty works (Art. 101). A new Government Tenders and Procurement Law was published in September 2026 to replace the 1440H law, taking effect 120 days after publication with a new implementing regulation. In the private sector the period is set by contract: the Civil Transactions Law sets no specific period in its construction-contract chapter, although it allows the employer to give the contractor notice to correct non-conforming work and then engage another contractor at the first one's expense (Art. 466).
In practice, the DLP must not be read as the end of the contractor's liability. Hidden defects threatening the building's soundness and safety remain covered jointly by the supervising designer and the contractor for ten years from the occupancy certificate, and this cannot be contracted out. The contract should therefore define the start and length of the period, the notice procedure, the time allowed for repairs, the retention percentage and its release conditions.
⚖️ Legal Basis
Implementing Regulation of the Government Tenders and Procurement Law (issued by Royal Decree No. M/128 dated 13/11/1440H): Art. 128 (project remains under the contractor's warranty for at least one year from provisional acceptance, with a duty to repair) and Art. 101 (extension of the final guarantee when warranty works are delayed); note that a new Government Tenders and Procurement Law was published in September 2026 and takes effect 120 days after publication. Civil Transactions Law (M/191 dated 29/11/1444H), Arts. 461 and 466 on construction contracts. Implementing Regulation of the Saudi Building Code Implementation Law, Art. 29 (ten-year liability that cannot be excluded).
💡 Practical Example
A development company contracted a builder to construct a shopping centre in Dammam for SAR 24,000,000, with a 5% retention (SAR 1,200,000): half released at provisional acceptance and half after a 12-month defects liability period. During the period a pump in the cooling system failed and the roof waterproofing leaked; the contractor was notified in writing and fixed the pump within a week, but did not address the leak despite a formal notice with a 15-day deadline, so the owner hired another contractor for SAR 85,000, deducted from the retention, and released the remaining SAR 515,000 at the end of the period. The contractor and supervising designer remain liable for ten years for any hidden structural defect.
⚠️ Common Mistakes
- ✗Treating the end of the DLP as the end of all contractor liability, although the ten-year liability for hidden structural defects continues and cannot be excluded.
- ✗Not fixing the start date precisely, especially with partial acceptance or outstanding items whose period runs from their own acceptance.
- ✗Releasing the retention or bank guarantee before the period ends and all snags are closed.
- ✗Relying on verbal notice; a written notice with a deadline is the practical prerequisite for hiring another contractor at the first contractor's expense.
- ✗Overlooking suppliers' equipment warranties and not aligning operation and maintenance during the period with their conditions.
🌍 International Differences
In FIDIC contracts it is called the Defects Notification Period and is 365 days unless stated otherwise; in UK JCT contracts it is the Rectification Period, commonly 12 months. In the UAE and Egypt, the decennial liability of the contractor and engineer continues alongside the contractual period. In Turkey, defects in immovable works are subject to statutory limitation periods that exceed the contractual period. The general pattern is the same: a short period for workmanship defects and a longer liability for structural defects.
FAQs
How long is the defects liability period in Saudi construction contracts?▾
In private contracts it is set by agreement, most commonly 12 months from provisional acceptance. In public construction contracts it is at least one year from provisional acceptance under the Implementing Regulation of the Government Tenders and Procurement Law.
Does the contractor's liability end when the DLP ends?▾
No. The supervising designer and the contractor are jointly liable for ten years from the occupancy certificate for collapse and hidden defects threatening the building's soundness. Any clause excluding or limiting this is void.
What if the contractor refuses to fix a defect during the period?▾
Send a written notice with a reasonable deadline; if the defect is not fixed, another contractor may be engaged at the first contractor's expense under the Civil Transactions Law and the contract. The cost is usually covered from the retention or bank guarantee.
When does the defects liability period start?▾
It usually starts from provisional acceptance of the works, while in government contracts outstanding items accepted later have a period running from their own acceptance. Private contracts should state this expressly.
How does the DLP differ from inherent defects insurance?▾
The DLP is a contractual obligation on the contractor to fix workmanship and equipment defects, usually for a short period. Inherent defects insurance is a mandatory 10-year policy covering structural defects, activated after the occupancy certificate.
