Defects Liability Security Clause Samples

The Defects Liability Security clause requires the contractor to provide a form of financial security, such as a bank guarantee or retention money, to cover the cost of remedying any defects that arise during the defects liability period after project completion. This security is typically held by the client and may be released in stages or upon the satisfactory rectification of all identified defects. Its core function is to ensure that the contractor remains accountable for correcting defects, thereby protecting the client from incurring additional costs for repairs and ensuring the quality of the completed work.

Defects Liability Security. 35.1 The Developer is to deliver the Defects Liability Security to the Council prior to Council issuing the Practical Completion Certificate 35.2 The Council may keep the Defects Liability Security as security for the Developer performing its obligations under this Deed, including but not limited to its obligations during the Defects Liability Period. 35.3 The Council may access the Defects Liability Security as a consequence of a failure by the Developer to comply with any of its obligations under this Deed. 35.4 The Council is to release and return the Defects Liability Security, or any remaining part, to the Developer within 30 days of the end of the Defects Liability Period if, at that time, the Developer is not in breach of an obligation under this Deed to which the Defects Liability Security relates.

Defects Liability Security. ‌ (a) The Developer is to deliver the Defects Liability Security to Council before the commencement of the Defects Liability Period to secure the Developer’s obligations in relation to the Defects Liability Period for Works in Kind. (b) Council is to release and return the Defects Liability Security, or any remaining part, to the Developer within 30 days after the end of the Defects Liability Period if, at that time, the Developer is not in breach of an obligation under this Agreement to which the Defects Liability Security relates.

Defects Liability Security. Z zastrzeżeniem Punktu 15.3, Inżynier Kontraktu uzyska i utrzyma (na własny koszt) Zabezpieczenie Odpowiedzialności za Wady w odniesieniu do należytego wykonania Umowy w Okresie Rękojmi. Zabezpieczenie Odpowiedzialności za Wady będzie zabezpieczało, między innymi, należyte wykonanie zobowiązań Inżyniera Kontraktu w Okresie Rękojmi zabezpiecza, w szczególności, należyte w ykonanie obowiązków Inżyniera Kontraktu, zapłatę kar umownych, oraz wszelkie roszczenia Zamawiającego wobec Inżyniera Kontraktu w związku z Umową. Zamawiający może skorzystać z Zabezpieczenia Odpowiedzialności za Wady w celu zabezpieczenia lub odzyskania wszelkich kosztów lub strat z tytułu szkód, które poniesie wskutek naruszenia zobowiązań umownych przez Inżyniera Kontraktu.

Defects Liability Security. 43.1 The Developer is to deliver the Defects Liability Security to the Council prior to the Developer Works Completion Date. 43.2 The Council may keep the Defects Liability Security as security for the Developer performing its obligations in relation to the Developer Works (Council) in the Defects Liability Period. 43.3 The Council may access the Defects Liability Security as a consequence of any failure by the Developer to comply with a Rectification Notice given by the Council to the Developer under this Deed in relation to the Developer Works (Council). 43.4 The Council is to release and return the Defects Liability Security, or any remaining part, to the Developer within 30 days of the end of the Defects Liability Period if, at that time, the Defects Liability Security or remaining part has not been accessed by the Council in accordance with this Deed and the Developer is not in breach of this Deed.

Defects Liability Security. 15.2.1 Subject to Clause 15.3, the Contract Engineer will obtain and maintain (at its own cost) Defects Liability Security in relation to the proper performance of the Agreement in the Warranty Period. The Defects Liability Security will secure, among other things, the proper performance of the obligations of the Contract Engineer in the Warranty Period, payment of contractual penalties, and any claims of the Client against the Contract Engineer in connection with the Agreement. The Client may use the Defects Liability Security in order to secure or recover any costs or losses in respect of damage it suffers due to an infringement of the contractual obligations by the Contract Engineer. 15.2.2 The Defects Liability Security will have the form of an unconditional, indivisible, transferable, irrevocable bank guarantee or an insurance guarantee payable on the first demand of the Client and will be issued by, as the case may be, a bank or an insurer with its seat in Poland, substantially in the form set out in Schedule 5(B) or any other form approved by the Client at its sole discretion. 15.2.3 The Defects Liability Security will be issued for an amount equal to 5% of the Fee (i.e. EUR [●] (in words: [●] euro)). 15.2.4 The Contract Engineer will provide the Defects Liability Security within 14 (fourteen) days from the beginning of the Warranty Period. The Defects Liability Security will come into force on the first day after the date the Performance Bond expires. Failure to provide the Defects Liability Security by the deadline entitles the Client to draw on the Performance Bond an amount equal to the Defects Liability Security and to retain it as a cash deposit instead of the Defects Liability Security. 15.2.5 The Contract Engineer will ensure that the Defects Liability Security is valid and enforceable until a day that is no earlier than one (1) month after the day on which the Warranty Period ends. The Client will return the Defects Liability Security to the Contract Engineer within 14 (fourteen) days of its expiry.

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