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)