Unless defined by contract, a "defect" is not a term
of art; it relates to the concept that works do not conform to
contract requirements. Defects encompass defects in workmanship and
materials, and design defects. In relation to defective work, a
contractor will, depending on the nature/extent of the defect,
potentially (1) assume obligations to its employer pursuant to the
defects liability clauses of its contract, (2) be liable to its
employer in damages for breach of contract, and (3) be liable to
its employer under the decennial liability provisions of local
law.
Contractual defects liability
Most industry standard construction contracts contain
"defects liability" clauses. These clauses oblige a
contractor to return to site and remedy any defects in its works
that are notified by (or on behalf of) an employer within a certain
time period calculated from the date on which the works are
certified as complete in a taking-over certificate. In a rail
project, the
