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Defect Liability Period (DLP), Explained

The Defect Liability Period is your safety net after handover — the window in which your contractor is contractually bound to fix defects that surface once you start living in or using the building. Here is how it works and how to make it stick.

AECORD Editorial5 min readConstruction 101

What the Defect Liability Period actually is

The Defect Liability Period (DLP) — sometimes called the "defects liability period" or "maintenance period" — is a fixed window after practical completion during which the contractor remains responsible for fixing defects in their own work at no extra cost to you. It does not mean the contractor keeps working on site; it means that if something they built fails or shows a defect, they must come back and put it right.

Think of it as a warranty baked into the construction contract. A wall that develops damp, a tap joint that starts leaking, tiles that lift, a door that warps, plaster that cracks beyond normal settlement — if these appear during the DLP and trace back to poor workmanship or materials, correcting them is the contractor's obligation, not a fresh bill for you.

The DLP is distinct from the initial handover check. At handover you make a "snag list" of visible issues to be closed before you accept the building. The DLP covers latent defects — the ones that only reveal themselves weeks or months later, once the structure has been lived in, loaded, rained on, and put through a full cycle of use.

How long it runs and how retention backs it

In Indian residential practice the DLP commonly runs for around 12 months from the date of handover, though it can be shorter or longer depending on what you negotiate and the scale of the project. Larger or more complex works sometimes carry longer periods, and specific elements (like waterproofing) may carry separate, longer manufacturer or applicator warranties. Treat any single figure as typical rather than fixed — the number that matters is the one written into your contract, so agree it before you sign.

The DLP only has teeth if there is money or leverage behind it, and the standard mechanism is retention. Retention means you hold back a small percentage of each payment — often in the region of 5% — instead of paying 100% as work is certified. Part of that retention is typically released at practical completion, and the balance is released only after the DLP ends and any defects raised during it have been fixed.

This is what changes the dynamic. If you have already paid every rupee, a contractor has little commercial reason to return for a leaking joint six months later. If a meaningful retention sum is still sitting with you, releasing it becomes the reward for coming back and finishing the job properly. Write the retention percentage, the release milestones, and the DLP length into the contract as one connected clause — a DLP with no retention behind it is mostly a promise.

What it covers — and how to enforce it

A DLP typically covers defects arising from faulty workmanship, defective materials, or the contractor not building to the agreed specification: cracks beyond normal shrinkage, seepage and damp, plumbing and drainage leaks, electrical faults, poorly fixed joinery, failed waterproofing, and finishes that come away. It usually does not cover normal wear and tear, damage you cause after handover, or issues from changes and DIY work done by others. Get the inclusions and exclusions listed in the contract so there is no argument later about whose problem a crack is.

To enforce it, keep a paper trail. When a defect appears, report it to the contractor in writing — a dated email or message with photos — rather than a phone call you cannot later prove. Give a reasonable time to inspect and repair, and keep a simple log of what was raised, when, and whether it was fixed. If the contractor ignores repeated written requests, most contracts allow you to get the defect fixed by someone else and recover that cost from the retention you are still holding, but follow whatever notice steps your contract specifies before doing so.

If a dispute grows beyond a few defects — for example the contractor disputes liability for a structural issue — your contract's dispute-resolution clause (often mediation or arbitration) governs what happens next. Because rights, notice periods, and how retention can be applied vary with the exact wording you signed and with local law, it is worth taking professional legal advice before withholding money or appointing another contractor, rather than acting on a general rule of thumb.

Frequently asked

Is a Defect Liability Period the same as a warranty?
They are close cousins but not identical. The DLP is a contractual window during which your contractor fixes defects in their own work. A warranty (for example on waterproofing, appliances, or a lift) is a separate promise, often from a manufacturer or specialist applicator, and can run longer than the DLP. It is common to have both running at once — keep copies of every warranty document handed over at completion.
How much money should I hold as retention?
A retention of around 5% of the contract value is a commonly seen figure in Indian residential work, typically released in stages — part at practical completion and the balance after the DLP ends. The right number depends on the size and risk of your project, so treat this as a starting point to negotiate rather than a rule, and make sure the exact percentage and release dates are written into the contract.
What if the contractor refuses to fix defects during the DLP?
First, put every request in writing with photos and dates so you have proof. If the contractor still does not respond within a reasonable time, most contracts let you engage another party to fix the defect and recover the cost from retention — but only after following the notice steps in your contract. Because the exact process and your rights depend on the contract wording and local law, take professional legal advice before withholding funds.

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