Your retentions and the expiry of the defects liability period

blog defects liability Jan 01, 2021

Is your builder asking you to wait to claim your retention until he gets his retention  under the Head Contract? 

Careful...this could be a neat little trap to trick you into waiting SO long to claim your retention, that you are time barred under security of payment legislation to make a claim and enforce it.

If your builder tells you he wants to extend the defects liability period, it is best to first check the provisions of the contract to make sure that he has a right to extend it at all.

If the contract doesn't have any provision that allows for an extension of the defects liability period, or if the defects liability period has already expired, seek advice before making an agreement with the builder.

Failure to claim within the time allowed under the security of payment legislation in your state could mean you are time-barred from using adjudication to recover unpaid retentions.

 

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