Defects Liability & Snagging Disputes

Defects liability and snagging disputes are frequent and often complex issues in large-scale construction projects, forming a significant part of modern Construction & Projects Disputes. After practical completion, parties frequently disagree over the nature, scope, and responsibility for defects, as well as the contractor’s obligations during the defects liability period. These disputes can create delays in handover, impact contractual payments, and strain relationships between employers, contractors, and subcontractors. Understanding how defects are classified, how snagging processes operate, and what legal remedies apply is essential for protecting commercial interests and maintaining project performance.

Understanding Defects and the Defects Liability Period

The defects liability period is a contractual timeframe following practical completion during which the contractor must return to site and remedy defects notified by the employer. The purpose of this period is to ensure the completed project performs as intended and any workmanship or material issues are corrected at the contractor’s cost.

Types of Defects

• Patent Defects: Visible issues identified at completion, such as poor finishing, incomplete installation, or misalignment.
• Latent Defects: Hidden issues that become apparent only after use, including structural deficiencies, waterproofing failures, or system malfunctions.
• Design Defects: Issues resulting from faulty design rather than workmanship, often raising questions of consultant or employer responsibility.

Most contracts allocate responsibility for workmanship and material defects to the contractor, while design defects depend on the contractual design responsibility model.

The Snagging Process

Snagging refers to identifying and listing minor issues requiring correction before or immediately after practical completion. Disputes often arise over the number, severity, or nature of snag items.

Common Snagging Issues

• Incomplete finishes such as paintwork, plastering, or tiling
• Faulty or missing fixtures
• Poor mechanical, electrical, or plumbing performance
• Door and window misalignment or malfunction
• Surface defects such as cracks or watermarks

Snagging lists must be clear, documented, and agreed upon between the employer and contractor to avoid disagreement during the defects liability period.

How Defects Liability Disputes Arise

Several recurring scenarios lead to disputes:

• Contractors refusing to acknowledge defects as their responsibility
• Employers claiming defects exceed normal wear and tear
• Delays in rectification causing operational or commercial losses
• Disagreements over whether works meet contractual standards
• Failure to complete snagging within agreed timeframes
• Latent defects emerging after the defects liability period expires

Because defects may affect safety, functionality, and compliance, disputes can escalate quickly into formal claims and expert-driven assessments.

Contractual Framework for Defects Liability

Most construction contracts, including FIDIC-based agreements, contain structured provisions governing defects liability obligations. These commonly include:

• Procedure for issuing defect notifications
• Timeframes for rectification
• Employer’s right to appoint third parties if the contractor fails to act
• Retention money linked to defects performance
• Liability for costs associated with failure to remedy defects

The contract administrator or engineer typically oversees compliance and certifies completion of defect rectification.

Latent Defects and Long-Term Liability

Latent defects present unique challenges because they may surface years after completion. UAE law and many international jurisdictions allow claims for latent defects well beyond the defects liability period, often under decennial liability or warranties.

Key Considerations for Latent Defect Claims

• Proving the defect existed at the time of completion
• Identifying whether responsibility lies with the contractor, designer, or supplier
• Determining whether the latent defect constitutes a structural flaw
• Establishing causation and quantifying loss

Latent defect claims often require expert engineering and forensic analysis to determine liability and responsibility.

Mitigation and Best Practices

To minimise disputes, parties should adopt proactive defect management strategies.

During Construction

• Conduct regular inspections and quality audits
• Document site progress with photographs and reports
• Ensure materials and workmanship comply with specifications

At Practical Completion

• Prepare a comprehensive snag list agreed by both parties
• Ensure testing and commissioning records are complete
• Clarify any outstanding works or conditional approvals

During the Defects Liability Period

• Respond promptly to defect notifications
• Keep clear records of rectification actions
• Engage independent experts if disputes arise over quality

Remedies for Failure to Remedy Defects

If the contractor fails to correct defects within stipulated timeframes, the employer may:

• Engage third-party contractors and recover costs
• Deduct expenses from retention or outstanding payments
• Claim damages for losses caused by delay or malfunction
• Pursue arbitration or litigation for unresolved disputes

These remedies depend on strict compliance with contract procedures and accurate documentation.

Conclusion

Defects liability and snagging disputes are an integral part of construction project management and post-completion obligations. By clearly defining responsibilities, maintaining strong documentation practices, and applying structured inspection and rectification processes, parties can significantly reduce conflict and protect project value. Effective management of defects ensures that completed works meet contractual expectations and long-term performance standards, safeguarding both commercial and operational interests.