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Construction Law/EPC and defects liability period

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Question
Hi John
I am not very sure if my question is within your expertise. I am working for documents preparation for a road widenning project in a mountainous region in south asia. The project does not use FIDIC but use of a unique EPC is compulsory. Under the contract, the client is persistent in enforcing a 4-year defects liability period.

Please advise if 1 4-yera DLP is reasonable in view of general risk allocation in the construction industry.
Thanks

Answer
Dear Kenji,

Thank you for this question.

The period does seem excessive by any standard, excepting where the contract is a DBFO type. I would suggest that a 2 year period is adequate for any EPC project such as this.

If the period is stated at the time of tender the bidders will all have the opportunity of commenting and, if the Employer persists, making due allowance in the bid. In the circumstances my guess would be that bids will be highly inflated.


Sorry that I cannot be of any more help than this.


Kind regards,
John Dowse

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Construction Law

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John Dowse

Expertise

Legal; contract interpretation; quantum; delay analysis. Practitioner in arbitration, adjudication and mediation.

Experience

Thirty-three (33) years experience in building and construction, at all levels both within contracting and consulting organisations. Practising arbitrator, adjudicator, and mediator. Faculty approved trainer for the Chartered Institute of Arbitrators. Lecturer on construction contract forms and dispute resolution practices.

Organizations
Chartered Institution of Civil Engineering Surveyors Chartered Institute of Arbitrators Institute of Directors Society of Construction Arbitrators

Publications
Various UK and International construction and legal publications.

Education/Credentials
LLB (Hons), Pg Dip (Legal Practice), MCInstCES MCIArb MIOD Barrister

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