The Supervisor has notified a Defect
Contractor side: Defects
Where the contract stands
A notification is not the last word, but the question is whether the work meets the Scope, and the correction period may already be running (44.2 in NEC4, 43.2 in NEC3). Answer in writing and quickly, say what you are relying on, and propose a way to test it if you disagree.
Read the guide: Supervisor defect dispute
This is our plain-English summary, not legal advice. Your own contract, including any Z clauses, decides.
In Contract Status, step by step
Find it on the register
Defects has its own register, showing who raised each one, when it was replied to and its status.

Five Defects on the fictional civil works contract.
Reply on the record
Your reply has places for the fault, the cause and the action, and can carry files. You can edit it, and start a discussion on the record if more needs saying.

D-0003: only the Client side closes a Defect.
If a test settles it, use the test record
A test or inspection has its own register. If a result shows a Defect, the Defect is notified from it, and the two records stay linked.

TI-0002, with its repeat and its Defect linked.
All screens are from the upgraded app, using a fictional water company, Kestrel Valley Water, and its made-up contractors.
What happens next on the other side
The Client side sees your reply, and closes the Defect once it is corrected. If it is not corrected in time, the Client side can record it as corrected by others, with the amount you pay shown on the final account. See that route.
See it on a contract you can click through
The guided tour lets you walk the same fictional account yourself. Or book a demo, and bring the situation you are dealing with.