DEFECTS LIABILITY PERIOD FOR CONDOMINIUM PROJECTS: THE NEED TO EXTEND THIS PERIOD

Abstract

Building defects have always been a stigma to the construction industry. Particularly in residential development where the owners have to live with the hassle and inconveniences due to defects. Generally architectural defects are minor but rampant. In order to safeguard the interest of the owners, developers have to fulfil their obligation for defects during the one-year defects liability period. Hence, specifically in residential projects including condominium, developers will impose a defect liability period in the building contract. However, many owners are concerned that the one-year defect liability period is insufficient as more latent defects are discovered after this period. Suggestions to extend this period are often heard. The core effect of defects must also be identified along with the types of defects. Cost implications and legal obligations will throw some light on the recommendation of extending the defects liability period. Alternative arrangement such as insurance is also evaluated in this study for the public to be liberal to other better ways of handling the risk of defects.