The defect liability period (DLP), also called the maintenance period, is the period specified in a construction or supply-and-install contract (commonly 12 months, sometimes 6 to 24 or longer for specialised works) starting from the certified date of completion, during which the contractor must rectify defects notified by the client at its own cost. At the end of the DLP, provided notified defects have been rectified, the client must issue the final or no-defect certificate and release the balance retention money and performance security.
How the defect liability period works in India
On completion, the engineer issues a completion certificate fixing the date. The DLP runs from that date. The client notifies defects in writing; the contractor attends and rectifies within the stipulated time. If rectification is delayed, the client may get it done by others and recover the cost from retention. At the end of the DLP the contractor applies for the final certificate; the client inspects and, if satisfied, issues it and releases the retention and security. Disputes commonly concern late completion certificates (which delay the DLP start), vague defect lists at the end of the DLP to delay release, and normal wear being treated as defects.
Why it matters for getting paid
The DLP end date is the date on which retention and security become payable. A client that stays silent through the DLP and then produces a defect list on the last day is using the DLP to delay payment. Contractors should document inspections during the period and insist on written defect notices. See retention money, security deposit and RA bill.
How FundRaksha uses it
FundRaksha's advocates fix the DLP dates from the completion certificate and contract, treat the retention and security as due from the release date, and require the client to produce written defect notices for any withholding. Interest is claimed from the release date under the contract or the MSMED Act. The fee is 30% of recovery; about 60% of cases settle at notice stage.
Worked example (hypothetical)
A Jaipur HVAC contractor (small enterprise) receives a completion certificate dated 15 March 2025. The DLP is 12 months, to 15 March 2026; the contract requires release of the balance retention of ₹8,00,000 within 30 days of the DLP end, by 14 April 2026. No defects are notified during the DLP. On 20 April 2026 the client sends a list of "defects" (dirty filters, a flickering indicator light) and withholds release. These are maintenance items and were notified after the DLP. The contractor's notice claims ₹8,00,000 plus Section 16 interest from 14 April 2026; assuming a 6.5% bank rate (19.5% a year, monthly rests), by 14 October 2026 that is about ₹81,200. The client releases ₹8,00,000 in settlement.
Last reviewed: 2026-10-08. Information for Indian businesses; not legal advice.