Snag is a slang expression widely used in construction to define a list of minor defects or omissions in building works for the contractor to rectify. Inspection for these snags is done prior to practical completion when an area is considered complete by the contractor.
These are usually issues that need to be corrected before the project is fully accepted by the client. Snags can include things like; chipped paint, missing fixtures, small cracks, or improperly fitted doors and windows, broken light etc.
Typically, a snagging list is prepared after the practical completion of the project. The contractor is then responsible for rectifying these issues within a specified time frame.
These defects are identified, listed, handed over to the relevant parties and should be rectified prior to the certificate of practical completion.
Defects liability period (DLP) also now known as rectification period begins upon issuance of a Practical Completion Certificate and typically lasts six (6) to twelve months (12) depending on the contract.
During this period, the client reports any defects that arise to the contract administrator who decides whether they are defects in the work or whether they are in fact maintenance issues.
If the contract administrator considers that they are defects, then they may issue instructions to the contractor to make good the defects within a reasonable time
Process for DLP is as follows:
1. Practical Completion. The DLP begins once the project achieves practical completion, meaning the work is sufficiently complete, and the building can be occupied or used.
2. Defects Notification. During the DLP, any defects identified by the client are reported to the contractor, who is obliged to repair or rectify them at their own cost.
3. Final Inspection. At the end of the DLP, a final inspection is often conducted to ensure all defects have been addressed. Once satisfied, the client typically releases any remaining retention money held back from the contractor’s payments and a Final Completion Certificate is issued.
Importance of DLP
· Quality Assurance. Both snags and the DLP provide mechanisms to ensure that the project meets the required standards and specifications, offering protection for the client.
· Financial Security. The retention of part of the payment until after the DLP gives the client leverage to ensure that the contractor fulfills their obligations regarding any post-completion defects.
Managing Snags in Construction
I. Inspection and Identification
· Initial Inspection. After practical completion, a thorough inspection is carried out by the client, project manager, or a snagging expert to identify any defects or incomplete work.
· Snagging List. The identified issues are documented in a “snagging list.” This list should be detailed, specifying the exact nature and location of each defect or incomplete work.
II. Communication and Rectification
· Issuing the Snagging List. The snagging list is issued to the contractor, who is responsible for addressing the issues.
· Timeline for Rectification. A timeline is agreed upon for the contractor to rectify the snags. The time allowed can vary depending on the extent and complexity of the issues.
· Monitoring Progress. Regular checks should be made to ensure the contractor is making progress in addressing the snags. Communication between the client, project manager, and contractor is key to resolving these issues efficiently.
III. Final Inspection and Handover
· Follow-Up Inspection. Once the contractor reports that all snags have been addressed, a follow-up inspection is conducted. This ensures that all issues on the snagging list have been properly rectified.
· Handover. After successful rectification of all snags, the final handover of the project takes place. The client may then accept the project fully, and the Defects Liability Period (DLP) begins.
Managing the Defects Liability Period (DLP)
I. Establishing the DLP.
· Contractual Agreement. The DLP is defined in the contract, specifying its duration, the scope of defects covered, and the process for addressing them. This period typically starts upon practical completion or final handover of the project.
· Retention Money. A portion of the contract sum is often retained (known as retention money) to ensure that the contractor addresses any defects during the DLP. This money is usually released in two stages: a portion upon practical completion and the remainder after the DLP ends.
II. Identifying and Reporting Defects
· Defect Notification. During the DLP, any defects that arise must be reported by the client to the contractor. These defects can include issues like structural cracks, plumbing leaks, electrical failures, or other problems that become apparent during use.
· Documentation. It’s important to document all reported defects in writing, noting the date of notification and the nature of the defect. This ensures clear communication and accountability.
III. Rectification Process
· Contractor’s Responsibility. The contractor is obligated to rectify reported defects at their own cost. The contractor should be given a reasonable time to address the issues, depending on their severity and complexity.
· Quality Control. The client or project manager should monitor the quality of the rectification work to ensure it meets the required standards.
IV. End of the DLP.
· Final Inspection. As the DLP comes to an end, a final inspection is conducted to ensure that all reported defects have been satisfactorily rectified.
· Release of Retention Money. If all defects have been addressed, the remaining retention money is released to the contractor. This marks the formal end of the contractor’s obligations under the contract.
· Issuance of Final Certificate. The client or project manager may issue a final certificate confirming that the contractor has fulfilled their obligations. This officially closes the project.
Best Practices for Managing Snags and the DLP
· Clear Documentation. Keep detailed records of all inspections, snag lists, defect notifications, and communications with the contractor. This helps in resolving any disputes and ensures accountability.
· Regular Communication. Maintain open and regular communication between the client, contractor, and project manager throughout the snagging and DLP processes.
· Proactive Monitoring. Conduct regular inspections during the DLP to identify any emerging defects early, allowing the contractor ample time to address them.
· Understanding the Contract. Ensure all parties clearly understand the terms and obligations related to snags and the DLP as defined in the contract. This helps prevent misunderstandings and ensures smooth project closure.
By effectively managing Snags and the DLP, you can ensure the final quality of the construction project and safeguard the interests of the client.