Defects Liability Period

 

1. What is a Defects Liability Period?
  Defect liability period is a period whereby the contractor must repair any defect identified by the supervisoring officer after a particular work was duly completed. All expenses to repair the defects shall be borne by the contractor and no additional costs charged to the Government.
   
2. Is there a certain period of time for the Defects Liability Period?
  Defect liability period for works contracts are as follows
  (a) For works contract valued at between RM10, 000 to RM100, 000, six (6) months from the date of certified completion of work; and
  (b) For works contract valued at more than RM100, 000, at least twelve (12) months from the certified date of completion. For electrical and mechanical work, warranty on the tools and plants shall be twelve (12) months, but in some cases because of the complexity of the work, the defect liability period longer than twelve (12) months may be applied.
     
3. What are the obligations of works contractors in the Disability Liability Period?
  During this period, the works contractor shall repair any defects on the completed work. If the contractor fails to do so, any expenses incurred to repair any defect shall be recovered from the performance bond.
   
4. What is the Guarantee/Warranty period for Supplies?
  Usually for supplies, a period of guarantee/warranty will be fixed. Period of guarantee/warranty is dependent on the type and complexity of the goods. Manufacturer's warranty period is different from the period of warranty/guarantee by the supplier, if the supplier is not the manufacturer.

For a supply contract, the contractor shall repair any damage or replace the goods supplied. If the contractor fails to do so, the cost for repairs for any damages shall be recovered from the performance bond. If the contractor fails to replace the rejected received goods, the cost of goods shall be collected from the performance bond.