A defects liability period is the window after handover during which the contractor returns and fixes defects at their own cost. Twelve months is standard on residential renovation. It covers workmanship and materials failures — not damage, misuse or normal wear. It usually runs alongside a retention of around five per cent, released once the period closes.
What it covers
Failures of workmanship or materials that appear after handover: cracking at junctions, joinery movement, tiling or grout failure, leaks, electrical faults, AC not performing as commissioned.
If it should not have happened and it was not caused by you, it is a defect.
What it does not cover
Damage caused after handover. Normal wear. Anything arising from a change you made yourself or had someone else do. Failures of items you supplied directly rather than through the contractor — those fall to the supplier.
It also does not cover maintenance. Servicing AC, resealing natural stone and cleaning drainage are your responsibility, and neglecting them can void a claim.
How retention works with it
Retention is a percentage of the contract sum — typically five per cent — withheld from the final payment. Half is commonly released at practical completion once snags are cleared, with the balance released at the end of the defects period.
It is a straightforward mechanism that aligns everyone's interests. A contractor with retention outstanding returns promptly.
Making a claim
Put it in writing with photographs and the date it appeared. Keep a record. A reasonable contractor will attend, assess and rectify.
Where a contractor becomes unresponsive during the defects period, the retention is your leverage — which is exactly why it should never be released early.
What it is
A defined period after practical completion during which the contractor returns to put right defects that appear in their work. It is not a warranty on everything in the property and it is not a maintenance agreement — it covers defective work and materials, not wear, misuse or things that were always going to need servicing.
Defects liability and retention are both standard UK practice that has to be asked for in Dubai rather than assumed. Twelve months is the common period on a residential renovation. The important part is not the length but what it covers and what mechanism makes it actually happen.
Retention is what makes it work
A defects liability clause with nothing behind it relies on goodwill. Retention — typically five per cent of the contract sum held back until the period ends — is the practical mechanism that gets snagging done.
The reasoning is straightforward. A contractor who has been paid in full has limited commercial reason to return for a list of small items. A contractor holding an outstanding five per cent has a direct one. Agree the amount and the release conditions before signing rather than afterwards.
What it covers and what it does not
Covered: workmanship that was defective, materials that have failed prematurely, installations that were not commissioned correctly. Not covered: fair wear and tear, damage from misuse, items requiring routine maintenance that was not done, and anything you changed after handover.
Air conditioning is the recurring argument. A unit that fails because it was never serviced is not a defect. A unit that was never commissioned or balanced correctly is. The distinction is usually settled by whether the commissioning records exist.
Making a claim that works
Report defects in writing as they appear rather than saving them for the end of the period. Be specific about location and symptom. Allow reasonable access, since a contractor who cannot get in cannot rectify.
And keep the documentation from handover — test results, commissioning records, product warranties and the operation and maintenance information. It is the evidence that determines most disputes about whether something is a defect or a maintenance failure.
| Issue | Usually |
|---|---|
| Tile lifting within months | Defect — substrate or adhesive. |
| Hairline cracking at junctions | Usually normal settlement, not a defect. |
| AC not cooling, never commissioned | Defect. |
| AC failed, never serviced | Not a defect — maintenance. |
| Paint flaking on new plaster | Defect — painted too soon. |
| Door sticking after 18 months | Depends on cause and period. |
| Grout discolouring with use | Wear, not a defect. |
Related Questions
Is twelve months long enough?
For most renovation work, yes. The majority of workmanship defects appear within the first few months, and particularly after the first full summer when materials have been through a complete thermal cycle.
Some elements carry longer manufacturer warranties — waterproofing systems, appliances, AC equipment — and those run separately from the contractor's defects liability.
What if the contractor disappears?
Retention is your protection, which is the reason it should never be released early no matter how persuasive the request.
Beyond that, a properly licensed contractor with a real trading address and current insurance is far easier to pursue than one without. It is one of several reasons to check licensing before appointing rather than after.
What is a defects liability period?
A defined period after completion — commonly twelve months on a residential renovation — during which the contractor returns to rectify defects in their own work. It covers defective workmanship and materials, not wear, misuse or missed maintenance.
How long should the defects period be?
Twelve months is standard on a residential renovation and is long enough to run through a full summer, which is when most defects in this climate reveal themselves. What matters more than the length is whether retention is held against it, because that is what makes it enforceable in practice.
What is retention?
A percentage of the contract sum — five per cent is normal — held back until the defects period ends. It is the practical mechanism that gets snagging done, because a contractor paid in full has limited reason to return for a list of small items. Agree the amount and the release conditions before signing.
Is a crack a defect?
It depends where and how wide. Hairline cracking at junctions between different materials is usually normal movement rather than a defect. Cracking through a wall, widening over time, or at a structural element is a different matter and should be investigated rather than filled.
Is my air conditioning covered?
If it was never commissioned or balanced correctly, yes. If it failed because it was never serviced, no. This is the most common defects argument there is, and it is usually settled by whether the commissioning records from handover exist — which is a good reason to keep them.
How do I make a defects claim?
In writing, as defects appear rather than accumulated for the end of the period, with the location and symptom described specifically. Allow reasonable access for inspection and rectification. Keep your handover documentation, because test results and commissioning records are what settle most disputes about whether something is a defect at all.
What should I receive at handover?
Electrical test results and a completion certificate, air conditioning commissioning records, pressure test records for pipework, operation and maintenance information for installed equipment, product warranties, and the agreed snagging list with its status. This documentation is what settles most defects arguments later, it matters at resale, and an insurer may ask for it. It is also substantially harder to obtain months afterwards than it is on the day, which is why it belongs in the contract as a condition of final payment.
What is snagging, and when does it happen?
Snagging is the inspection at practical completion that identifies incomplete or defective work before you take over the property. It happens before final payment, not after, and the list should be agreed in writing with dates for rectification. It is separate from the defects liability period, which covers things appearing later. Our snagging checklist sets out what to look for and in what order, because an inspection done systematically finds considerably more than one done by walking round.
Who holds the retention and when is it released?
The retention is withheld by you from payments to the contractor, typically five per cent of the contract sum, and released at the end of the defects liability period once outstanding items have been rectified. The mechanics should be in the contract: the percentage, when it is withheld, what triggers release, and what happens if defects are reported but not remedied. Some arrangements release half at practical completion and half at the end of the period, which is a reasonable compromise that keeps the contractor's incentive without holding the full amount for a year. What matters most is that it is agreed before signing rather than raised when the final invoice arrives.