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Home / Glossary / Defect Liability Period (DLP)
Glossary

What is the defect liability period (DLP)?

The defect liability period (DLP) is the time after a project is completed, frequently 12 months and fixed by the contract, during which the contractor must repair any defects that appear at their own cost.

Defect Liability Period (DLP) explained

DLP begins on the date the work is certified complete. If the client reports defects, the contractor must fix them; if they do not, the client can have the work done by others and recover the cost from the retention or guarantee.

Retention money, or a bank guarantee in its place, is commonly released at the end of the DLP once defects have been put right.

It is also called the defects notification period or, loosely, the warranty period, though a warranty on materials or equipment is a separate matter.

How ARC PEM helps

Keep the completion certificate and defect notices with the project’s documents, which are versioned and reviewed, and watch the retention still held in pending payments. See all features.

Frequently asked questions

How long is a defect liability period?
It is set by the contract, commonly 12 months from certified completion, though it varies with the contract and type of work.
What happens to retention at the end of the DLP?
Once defects reported during the period have been fixed, the remaining retention money or bank guarantee is released, as the contract provides.

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