What is Latent Defect?
Any “hidden/ non-discoverable” defects caused by failure in design, workmanship or material, that was not discovered during inspection until many years after completion
How are Construction Defect Handled?
Under the Construction Contracts, the defects that are discovered are addressed under the concept of defects liability period (DLP). However many defects (Examples include seepage, plumbing/wiring issue, weak foundations etc) remain latent (hidden) and become apparent/visible later, usually after the end of the DLP.
The problem for the owner arises, when the remedy to fix such defects involves extensive repair/renovation or causes unexpected financial burden. To protect the interest of such affected owners, the civil laws provide protection under the concept of Latent Defects Liability.
To meet such liability, professionals are advised/required to seek protection of Professional Indemnity Insurance.
What is the provision in UBBL 2016?
The Chapter 2 of the UBBL 2016 was rewritten in 2017 & the Clause 2.10 was modified on Feb 28, 2018 to extend such protection to plot owners and to assign liabilities on Architects among others.
UBBL 2016 : as notified on Apr 05, 2017, & further amended on Feb 28, 2018
❝ Clause 2.10 : Latent Defects Liability
- The following shall be held liable for any structural flaws or defects in all risk category of buildings having plot area 750 sqm. And above, after it is in use:
- Architect; Structural Engineer; Site Supervisor/Site Engineer; Construction Company including contractor/sub contractor.
- The above mentioned professionals and the construction company including contractor/sub-contractor shall take decennial professional liability insurance to cover for such liability.
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