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 Ask me anything abt Construction Industry!, Q&A

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gladfly
post Mar 17 2016, 04:24 PM

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QUOTE(magnesium @ Mar 14 2016, 02:44 PM)
This term 'latent defects' only come in final days in my construction industry when i attend my last seminar. I did ask my architect regarding this but i can't remember his explanation.

So im not really familiar with this term. In 10 years my experience no home owner ever brought latent defects issue when all developers try cuci tangan when dlp finish.
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I handle construction disputes and will try to explain what is meant by latent defects.

Basically, the easiest way to explain latent defects are defects which are hidden, i.e defects which does not appear during the early period. However, these defects had manifested during construction stage. The easiest example of a latent effect is a perhaps a bad foundation works which was not done according to specification/ drawing/ plans. It is only through the afflux of time that subsequently the defects rear its head.

The main problem of latent defect is to prove that the defect existed in the first place. Because through afflux of time, thing naturally deteriorate thus it becomes almost impossible to know if the defect had occurred in the beginning or due to fair tear and ware. This is when an expert / specialist is needed to prove such defects were latent.

The classic case of Pirelli General Cable Works Ltd v Oscar Faber & Partners [1983] 2 AC 1 exemplifies a case study of latent defects. Note that UK has its own Latent Defect Act, unlike Malaysia.

However, the common law position as expounded in Perelli's case is adopted in Malaysia. Thus limitation of 6 years only runs when the defects could have been reasonably forseen/ identified. Hence, the DLP period plays no part in respect of damages due to latent defects.

Hope this helps to the TS above. (sorry I don't know how to quote multiple posts)








gladfly
post Mar 24 2016, 11:07 AM

On my way
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QUOTE(iwubpreve @ Mar 24 2016, 10:36 AM)
thanks bro for sharing. either u are contract administrator or claim consultant I guess biggrin.gif

despite of all these legal issue, I seen some main contractor willing to swallow some work even they have a good case. this is abt long term business. even a main contractor winning the case, but to other developer / employer eye, award the job to him might have risk litigation dispute as sometimes developer might miss out certain meticulous contractual machinery or issue that haven't tested in court.

nowadays, I see that to be secure for developer, the contractor had to provide warranty for certain trade even until 20 years. eg. like though no leaking reported during DLP, however if after 5 years leaking occur on waterproofing area and if it is proven is the product failure, the waterproofing manufacturer have to rectify the issue.
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I am in claims. tongue.gif

As we all know, the construction industry in Malaysia is rather shady. A lot of $$$ involved. Thus, commercial interest sometime override the legal rights.
If you are in the industry, you will know who are the good employers and good main contractors and vice versa.

It is common for sub-contractors to provide warranty for works/goods provided, especially M&E matters. Hence, T&C is always a requisite and the warranty always forms part of the T&C submissions prior to hand over.

But, even with warranty, the end user usually gets shafted, as there is no privity of contract between the end user and the contractors. End users cannot enforce the warranty directly against the contractors (unless end user is the party which appoints the contractors). So, most of the time, if the developer / employers doesn't push the contractors to rectify, end users usually has no recourse but to sue the developer. Its a messy situation because most of the time, the developer wont divulge to the end user what type of the warranty is given by the contractors, but will give a global DLP as a warranty for the works.


 

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