Common use of Defects Liability Clause in Contracts

Defects Liability. ‌ 8.1 Security for Defects Liability Period‌ Until the expiry of the relevant Defects Liability Period, the City may retain from the Guarantee an amount equal to 10% of the Attributed Value of the Public Benefits as security for the Developer’s performance of its obligations under this clause 8. The Developer must make any necessary arrangements to allow the provision of the Guarantee for the Defects Liability Period in accordance with this clause. 8.2 Defect in the Public Benefits‌ (a) If:‌ (i) the Developer is in breach of clause 4.2 of this document; or (ii) the City notifies the Developer of a Defect in the Public Benefits within the Defects Liability Period, then, following written notice from the City, the Developer must promptly correct or replace (at the Developer’s expense) the defective elements of the Public Benefits. (b) If the Developer is unable or unwilling to comply with clause 8.2(a), or fails to rectify the Defect within three months of receiving notice from the City under clause 8.2(a), the City may: (i) rectify the Defect itself; (ii) make a claim on the Guarantee in accordance with clause 10.3 of Schedule 3 for the reasonable costs of the City in rectifying the Defect; and (iii) to the extent the costs incurred to rectify the Defect exceeds the Guarantee, recover the reasonable costs from the Developer as a debt due and owing to the City. (c) If the City requires access to the Land to rectify any Defect, the Developer grants the City and its contractors a licence for such period as is necessary for the City and its contractors to access the Land to carry out, or procure the carrying out, of the rectification works.

Defects Liability. ‌ 8.1 Security for Defects Liability Period‌ Period‌ (a) Upon Completion of the Developer's Works and/or the Public Art, the Developer must deliver a Defects Guarantee for the relevant Defects Guarantee Amount to the City. (b) Until the expiry of the relevant Defects Liability Period, the City may retain from the Defects Guarantee an amount equal to 10% of the Attributed Value of the Public Benefits as security for the Developer’s performance of its obligations under this clause 8. The Developer must make any necessary arrangements to allow the provision of the Guarantee for the Defects Liability Period in accordance with this clause. 8.2 Defect in the Public Benefits‌ (a) If:‌ (i) the Developer is in breach of clause 4.2 of this document; or (ii) the City notifies the Developer of a Defect in the Public Benefits within the Defects Liability Period, Period,‌ then, following written notice from the City, the Developer must promptly correct or replace (at the Developer’s expense) the defective elements of the Public Benefits. (b) If the Developer is unable or unwilling to comply with clause 8.2(a), or fails to rectify the Defect within three months of receiving notice from the City under clause 8.2(a), the City may: (i) rectify the Defect itself; (ii) make a claim on the Defects Guarantee in accordance with clause 10.3 of Schedule 3 10 for the reasonable actual costs of the City in rectifying the Defect; and (iii) to the extent the costs incurred to rectify the Defect exceeds the Defects Guarantee, recover the reasonable costs from the Developer as a debt due and owing to the City. (c) If the City requires access to the Land to rectify any Defect, the Developer grants the City and its contractors a licence for such period as is necessary for the City and its contractors to access the Land to carry out, or procure the carrying out, of the rectification works.