How do we deal with defects within our construction contract final account?

Defects in the work are virtually inevitable, and most contracts prescribe clearly how these should be dealt with. Defects can delay the final account, so most contractors are asked to repair patent or obvious defects, following which the final account can be agreed upon.

Suppose the defect is not remedied to the employer’s satisfaction. In that case, most construction contracts contain a provision to allow the employer to engage another contractor to correct the defect and deduct this cost from the final account.

If the resolution of a defect is impossible — and a dispute ensues — then it may not be possible to agree on the final account. However, if a third party corrects the defect — and the contractor accepts the charges as valid — the final account may be agreed with this adjustment.