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May i ask you one question relating to issuance of Defects Liability Certificate (DLC) of the Project:

According to Clause 62.1 of General Conditions of FIDIC 1987 (reprinted 1992), i understand that the part says: "the DLC will be issued after expiration of latest period incase there are different Taking-Over Certificates (TOC) issued for different Sections".

For example, we received 2 TOC: 1) TOC for 1st Section: completion date is 31 Jan 2010. and other 2) TOC for 2nd section: completion date is 20 May 2010.

the Defects Liability Period is 2 years, so, my understanding according to this Sub-Clause, DLC will be only one and will be issued on 20 March 2013 (expiration of the latest such period).
So if like this, the 1st section is out of DLP, how we release from this liability.

Could you please kindly give me advice on my interpritation of this conditions.

Thank you very much.

Best regards,

ANSWER: Dear Nguyen,

I am not sure where you get the date of 20 March 2013 as 20 May 2010 plus two years is 19 May 2012.  What liability do you have for the first section?  The Engineer should confirm the end of the DLC to the first section when the period ends and all defects, if any, have been rectified.  Yes only one DLC will be issued at the end of the latest period.  

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I'm sorry because i mixed up the date with other project.
I mean, in our project, the Engineer issued two TOC in accordance with Sub-clause 48.2 (Taking over of sections or parts).
1st part: 23 Oct 2010, end of DLP is 22 Oct 2012.
2nd part: 20 Mar 2011, end of DLP is 19 Mar 2012.

Now the 1st part's DLP has been expired, we are now processing final inspection.
According to your reply, i understand that there is only one DLC for Project, i understand that DLC will be issued at completion of DLP of 2nd part.
My question is if there is only 1 DLC for project so how the Engineer would confirm that 1st part's DLP is complete, and what do we need to do now?
Thank you for your time.

Best Regards,

Dear Nguyen,

The only advantage of sectional completion is a potential reduction in delay damages.  Since this reduction is applied at the time of issuing the Taking Over Certificate, there is no advantage in confirming the end of a partial defects liability period except the responsibility for defects is reduced.  I would write to the engineer, asking him to confirm that the DLP had ended and thus you have no further responsibility for any defects.  

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Peter M. Elliott


First response to queries regarding extensions of time, variations orders, site instructions and payment using FIDIC and other forms of Conditions of Contract, based on English Law, and derivatives only. Anyone who needs advice about EoT should download and study the SCL Delay & Disruption Protocol before submitting a question.


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