The NEC Defects Certificate is the closing statement on quality: either a list of notified Defects the Contractor hasn't corrected, or confirmation that there aren't any. It isn't a statement that the works are free of Defects, and it doesn't end the Client's rights over Defects nobody found.
The term is defined in clause 11.2 (item 6 in NEC3 ECC) and the Supervisor issues it. The rule on timing and effect is at 44.3 in NEC4 and 43.3 in NEC3. For the procedure, see the Defects Certificate explained; this page deals with what the term means and why it's misunderstood. It's part of the NEC definitions.
Why the wording matters
Two features set it apart from a "final certificate" on other forms.
- It's a list, and may list things. A certificate naming ten uncorrected Defects is still a valid Defects Certificate. It isn't withheld until everything is resolved.
- It only speaks to notified Defects. Anything never notified isn't on it, and isn't covered by it.
So a certificate with "no Defects" doesn't mean the works are free of them. It means none were notified and left uncorrected.
When it's issued
| Edition | Timing |
|---|---|
| NEC3 ECC (43.3) | Whichever comes last: the defects date, or the close of the final defect correction period |
| NEC4 ECC (44.3) | On the defects date where nothing notified is outstanding. If something is, on whichever comes first: the close of the final defect correction period, or the day all notified Defects are corrected |
The NEC4 row follows the NEC4 subcontract, which uses the same number but has the Contractor issuing the certificate in place of the Supervisor. Check the wording in your own NEC4 ECC, including any amendment.
What it triggers
- Final stages of the insurance period. Several core insurance requirements run until the certificate or a stated time around it, so check the Insurance Table and your policies.
- Security and retention entries. Bonds and similar arrangements may be drafted to expire on it, so check their own wording.
- Limits on liability. Under Option X18 a separate end of liability date works differently, and it's easy to confuse the two.
- Final assessment in NEC4. The final assessment under clause 53 is timed from the certificate or termination, so check the entry that applies to you.
What it doesn't do
The certificate doesn't release the Contractor from liability. The Client's rights over a Defect the Supervisor hadn't found or notified continue after issue, so an unknown problem discovered later isn't barred by the certificate. How long those rights last is a matter of the law of the contract, limitation periods and any X18 entries, not of the certificate itself. If you face such a claim, take legal advice.
A worked example
A fictional sports hall with illustrative dates, under NEC3 ECC. The defects date is 52 weeks after Completion and falls on 10 June. The general defect correction period is four weeks.
- A leak in the roof is notified on 3 June. The period ends on 1 July.
- Since that's the last period to end, the Supervisor issues the Defects Certificate on 1 July.
- The leak was corrected by then, but a cracked floor tile notified in May wasn't. The certificate lists the tile.
- Three years later a beam shows a fabrication fault nobody had found. It was never notified and isn't on the certificate, but the Employer's rights over it aren't affected by the certificate.
The tile then falls into the uncorrected Defects procedure, with its cost assessed and paid.
What people get wrong
- Waiting to issue until everything's fixed. The Supervisor has a date to work to. Holding the certificate back while snags are chased isn't how it works.
- Treating it as a sign-off. Contractors sometimes view it as the end of liability. It isn't.
- Issuing without checking the register. A list that leaves out a notified Defect causes an argument that was easily avoided.
- Missing the distribution. Under NEC3, the Supervisor issues its certificates to both the Contractor and the Project Manager (13.6). A notification or certificate is also communicated on its own, not buried in other correspondence.
Related guides
- NEC Definitions: A Glossary of Key Terms
- Defects Date
- Early Warning Register
- Equipment
- Defect
- Defect Correction Period
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This guide is general information in our own words, not legal advice. Your contract and its Contract Data always govern. NEC, NEC3 and NEC4 are trade marks of Thomas Telford Ltd; Contract Status is not affiliated with or endorsed by NEC.