Understanding the Defects Liability Period (DLP) in Bahrain! And How It Helps Resolve Construction Disputes
In Bahrain’s construction and engineering sector, even the most well-managed projects can encounter issues after handover, from cracks in concrete to faulty electrical systems. This is where the Defects Liability Period (DLP) becomes crucial. It is a legal safety net that protects employers and project owners from defects that may arise after completion, ensuring contractors remain accountable.
At Manal Dhahi Legal Consultants, we help clients navigate and enforce DLP clauses, resolve disputes, and protect their legal rights under Bahraini law.
Explore our expertise in Bahrain Construction Law.
What Is the Defects Liability Period (DLP)?
The Defects Liability Period (DLP) is a post-handover period during which the contractor is obligated to fix any defects that appear in the completed work. It typically starts once the Taking Over Certificate (TOC) is issued and may last from 1 to 10 years, depending on the contract type and the nature of the defect.
During this period, the contractor remains legally responsible for the performance and durability of the structure, systems, or components they delivered.
Legal Foundation of DLP in Bahrain
In Bahrain, the DLP is recognized under civil and commercial law, and it is commonly incorporated into construction contracts including those based on FIDIC standards.
Key legal features include:
- Duration: Typically 12–24 months for standard defects; up to 10 years for major structural faults under the decennial liability rule.
- Scope: Covers visible and latent defects that arise from poor workmanship, design flaws, or use of substandard materials.
- Remedies: The employer can compel the contractor to fix the defect or seek compensation if repairs are not completed.
How DLP Helps with Dispute Resolution
DLP clauses act as a powerful dispute resolution mechanism — they provide a clear framework for resolving problems without immediate litigation.
1. Gives the Employer Legal Grounds to Demand Repairs
If defects emerge, the employer can invoke the DLP clause to demand correction at the contractor’s expense, without needing to prove negligence in court.
2. Delays Costly Lawsuits
Instead of resorting immediately to litigation, parties have an agreed-upon period to fix issues amicably through notification and repair procedures.
3. Supports Mediation or Arbitration
If disputes escalate, the DLP clause serves as a contractual benchmark in mediation or arbitration, helping clarify responsibilities.
4. Provides Evidence for Delay Claims
If the contractor fails to address defects, it can form the legal basis for damage claims or extension of time requests.
What Happens If the Contractor Ignores the Defect?
If the contractor fails to fix the defect during the DLP:
- The employer can hire a third party to carry out the repair and claim the cost from the contractor.
- The matter may proceed to legal action, arbitration, or enforcement of retention guarantees.
- The employer can withhold final payments or claim against a performance bond if still valid.
Common Disputes Involving the DLP in Bahrain
At Manal Dhahi Legal Consultants, we commonly see disputes involving:
- Contractor denial of responsibility for visible or hidden defects
- Delayed repairs leading to operational losses
- Employer refusal to release retention due to unresolved DLP issues
- Conflicts over the DLP’s start and end dates
- Arguments over whether an issue qualifies as a “defect”
Illustrative Example of How the Defects Liability Period (DLP) Works
Imagine a contractor completes a multi-story residential project, and the Taking Over Certificate is issued. Several months after occupancy, issues such as water leakage from ceilings or poor thermal insulation begin to surface. If the contract includes a clearly defined Defects Liability Period (DLP), the project owner can consult a lawyer to issue a formal notice to the contractor demanding repairs.
If the contractor fails to act, the owner may pursue legal options such as withholding final payments, calling a performance bond, or hiring a third party to fix the defects at the contractor’s expense.
This example demonstrates how a properly drafted and enforced DLP clause can protect project owners, ensure construction quality, and provide legal recourse without immediately resorting to litigation.
Work with experienced Construction Lawyers in Bahrain for project claims.
Best Practices for Employers in Bahrain
To benefit from a DLP legally, project owners should:
- Ensure the DLP clause is clearly written in the contract
- Document the handover date (TOC) to define the DLP start
- Conduct detailed inspections during the DLP
- Notify the contractor in writing as soon as a defect appears
- Track communication and responses to support future claims
Tips for Contractors
Contractors should:
- Maintain a log of reported issues
- Respond to repair requests promptly
- Keep records of completed defect repairs
- Engage legal counsel when disputes arise during the DLP
Legal Services We Offer
At Manal Dhahi Legal Consultants, we help both employers and contractors with:
- Drafting and reviewing DLP clauses in construction contracts
- Handling disputes related to hidden or unresolved defects
- Representing clients in mediation, arbitration, and litigation
- Advising on legal enforcement of DLP-related financial claims
- Ensuring compliance with Bahraini laws and FIDIC standards