Definition
The Defect Liability Period (DLP) is a specified timeframe (typically 6 to 12 months, or extending up to 5 years under certain Indian RERA mandates for structural integrity) commencing immediately after the project's Practical Completion. During this window, the principal contractor is legally obligated to return to the site and repair any defects, snags, or faults that appear without charging the client.
Practical Example
A commercial tower is handed over on January 1st with a 12-month DLP. In August, the client notices significant water leakage from the terrace and cracks in the basement plaster. The contractor must mobilize a team to waterproof the terrace and re-plaster the basement entirely at their own cost before the DLP expires.
Application in Superwise
During the DLP, clients hold back a "Retention amount" from the contractor's final bill (typically 5%). Superwise digitally tracks these Retention withholdings across all RA Bills. It sends automated notifications to the accounts team when the DLP expires, prompting them to legally release the locked retention funds to the contractor.
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