Hurdles to recovering loss for latent defects in construction projects

During a construction project, it is not unusual for disputes to arise over alleged defects in the works. Good project management, contract administration, and legal advice can often ensure that the dispute is efficiently resolved, the parties maintain a positive relationship and a successful project is delivered. However, if defects only become known significantly after the project is complete, disputes between the parties can often grow in complexity and seriousness.

The peril of defects that are undiscoverable for a period of time (i.e. latent defects) is that identifying not only the cause of the defect, but also the person responsible, can be fraught with difficulty. But once those hurdles are overcome, the next question turns towards the prospects of recovering any loss from those who are responsible.