Defects Liability Period (DLP)

The Defects Liability Period (DLP) is the contractual period following practical completion during which the contractor is obligated to return and rectify any defects that arise from faulty workmanship or materials — at no additional cost to the client. The DLP begins on the handover date and typically runs 12 months for most fit-out contracts in India.

During the DLP, the client should log any defects as they appear and notify the contractor formally. A responsible design-build firm will typically schedule one or two structured defect-resolution visits during the DLP rather than waiting for a list at month 11. At the end of the DLP, a retention sum (typically 5–10% of contract value) held back to incentivise defect resolution is released after the DLP closure inspection is passed.

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