Latent Defects: Key Issues

Introduction

A construction contractor is usually liable to remedy defects in materials and/or workmanship which are apparent or patent for a limited period once a project has reached substantial or practical completion. This period is commonly known as the 'defects liability' or 'defects notification' period and will be stated in the contract. During this period, a construction contractor typically completes snagging. However, despite the expiry of the defects liability period under a contract, an employer's common law rights with respect to latent defects continue to apply. 'Latent defects' are defined as those defects which are not readily apparent or discoverable upon a standard inspection of the completed works. In other words, latent defects are concealed flaws; defects that exist, but are hidden at the time of completion.