Managing Liability for Defects After Contracting Project Handover in Bahrain
In Bahrain’s contracting industry, a project’s completion and handover do not necessarily end a contractor’s responsibilities. Defects whether discovered immediately after completion or months later, can trigger legal liability, financial claims, and reputational risks.
This blog explains how defect liability works in Bahrain after project handover, the relevant legal framework, and best practices for managing post-completion obligations.
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Understanding Post-Handover Defect Liability
After a project is handed over, contractors typically remain responsible for addressing defects faults in design, workmanship, or materials, during a defined period. These responsibilities are generally set out in:
- Defects Liability Period (DLP) clauses in the contract.
- Bahraini Civil Code provisions on construction obligations.
- Manufacturer warranties for specific materials or equipment.
Legal Framework in Bahrain
- Defects Liability Period (DLP)
- Usually 12 months from the date of project handover, unless the contract specifies otherwise.
- Contractors must rectify defects at their own cost within this period.
- Latent Defects Liability
- Certain defects that are hidden and not discoverable during normal inspection may still be actionable even after the DLP expires, depending on the contract and Bahraini law.
- Decennial Liability
- Under Bahraini law, contractors and architects may be jointly liable for structural defects for up to 10 years if the defects threaten the building’s stability or safety.
- Contractual Extensions
- Some contracts extend defect liability beyond statutory requirements, especially for specialized systems or high-value installations.
Risks of Poor Defect Management
- Unpaid retention money due to unresolved defects.
- Costly rework and replacement of defective materials.
- Legal claims from employers or end users.
- Reputational harm leading to loss of future projects.
Our Business Lawyers in Bahrain support contracting agreements.
Example:
A contractor in Bahrain completed a luxury apartment complex and handed it over to the developer. Six months later, residents reported persistent water leakage in several units.
Inspection revealed that the waterproofing membrane had been improperly installed. Since the issue arose within the DLP, the contractor was required to replace the membrane at their own cost. A lawyer reviewing the case emphasized that prompt defect rectification not only avoids legal disputes but also helps maintain client relationships.
Best Practices
For Contractors:
- Maintain a defect log to track reported issues and repair deadlines.
- Respond quickly to defect notifications to avoid escalation.
- Keep detailed records of repairs and materials used for future reference.
For Employers:
- Conduct regular inspections during the DLP.
- Notify contractors in writing as soon as defects are identified.
- Retain appropriate security (e.g., retention money) until defect obligations are fulfilled.
In our previous blog on Legal Risks of Using Unapproved Materials in Contracting Projects in Bahrain
