Defect Liability Period Malaysia 15 Years

Building technology has progressed over the years and we can build high rise buildings.

Defect liability period malaysia 15 years. Various law reform bodies have suggested that there should be a single limitation period of 10 years from practical completion and that as everyone would know the extent of their liability they could obtain decennial insurance to cover it. A health hazard in malaysia. This means that if the defects first appeared in 2001 but were only discovered in 2018 no action can be brought against the developer as the 15 year limitation period would have expired in 2016. Scenario 1 based on illustration c to section 6a 2.

In construction contracts limitation periods are often relevant in relation to defects claims brought against contractors. Most construction contracts provide for a defects liability period which may run from 12 to 24 months after completion. The defect liability period is defined as the period of time from the date you receive delivery of vacant possession and keys to your property where the developer is responsible to fix any defects. However section 6a 3 provides that no action can be commenced 15 years after the occurrence of the latent defect even if knowledge of the latent defect was obtained during or after the 15 year period.

Thus if you had the required knowledge for starting a lawsuit only 13 years after suffering the injury or damage you will be left with only 2 years to bring an action instead of 3 years. However buyers would not be able to bring an action against the developer if more than 15 years have passed since the defects first occurred. The alleged defects were discovered sometime in 2014 7 years after construction was completed in 2007. The plaintiff the joint management body of the development brought an action on behalf of the residents against the developer for latent defects in october 2016 some 9 years after the construction had been completed.

A disgruntled client may have three six 12 or 15 years in which to start proceedings. Adelyn would not be able to commence an action against developer x as the 15 year limitation period lapsed in 2016 that is 15 years from 2001 when the cracks were discoverable. Section 29 2 of the limitation act 1953. Defects is limited to the short defect liability period of 18 to.

The court of appeal recently confirmed that a building action can be brought anytime within ten years from the date of the relevant occupancy permit this has significant practical implications for participants in the building industry. Defect liability the contractual defect liability period under a construction contract dlp generally 12 months provides a principal continued. It s important to note that not all new developments come with a dlp as the housing development act hda only protects properties and developments under a residential title. The following scenarios illustrate section 6a.