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ARTICLE · 24 APRIL 2023

Decoding design and construct contracts: Defects (Part 6)

Holding Redlich
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Contractual issues surrounding defects that may arise in construction projects.

AustraliaReal Estate and Construction
Kirsty Smith
Kirsty Smith
Andrea Wilson
Andrea Wilson
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In this sixth article breaking down the popular AS4902 standard form design and construct contract, we discuss the contractual issues surrounding defects that may arise in construction projects.

Our previous instalments covered what a contract sum is, types of security under a contract, role of superintendents, concept of 'time' in a contract and how contracts are varied.

What is a defect?

The standard unamended AS4902 provides that the term "defects" is defined in clause 35 and includes omissions. However, clause 35 refers to the defects liability period without specifying what constitutes an actual defect under the contract.

The only clarification of what a defect may be is provided under clause 29.3 of the unamended AS4902, where "defective work" covers the requirement for the Superintendent to notify the Contractor of any work done (including material provided) by the Contractor that does not comply with the Contract. This tends to support the general

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This publication does not deal with every important topic or change in law and is not intended to be relied upon as a substitute for legal or other advice that may be relevant to the reader's specific circumstances. If you have found this publication of interest and would like to know more or wish to obtain legal advice relevant to your circumstances please contact one of the named individuals listed.

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