Common use of Defect Clause in Contracts

Defect. A failure to comply with a functional requirement in the Technical Manual in respect of the construction of the Housing Unit. Failure to follow the performance standards or guidance supporting the functional requirements does not in itself amount to a Defect, as it may be possible to achieve the recommended performance in other ways. For any contract insured under this Policy relating to the conversion, refurbishment or renovation of a New Development the definition of Defect shall only be deemed to include any of the works constructed or installed by the Builder as part of the conversion, refurbishment or renovation.

Defect. A failure to comply with a functional requirement in the Technical Manual in respect of the construction of the Housing Unit. Failure to follow the performance standards or guidance supporting the functional requirements does not in itself amount to a Defect, as it may be possible to achieve the recommended performance in other ways. For any contract insured under this Policy relating to the conversion, refurbishment or renovation of a New Development the definition Definition of Defect shall only be deemed to include any of the works constructed or installed by the Builder as part of the conversion, refurbishment or renovation.