Security for Defects Liability Sample Clauses

The 'Security for Defects Liability' clause requires the contractor to provide a financial guarantee or security to cover the cost of remedying any defects that may arise during the defects liability period after project completion. This security can take the form of a retention sum, bank guarantee, or performance bond, and is typically held by the client until the end of the defects liability period to ensure that any necessary repairs are completed. The core function of this clause is to protect the client by ensuring that funds are available to address defects, thereby incentivizing the contractor to fulfill their obligations and remedy any issues that arise post-completion.
Security for Defects Liability. (a) Prior to the issue of a Certificate of Practical Completion for each item of the Works the Developer must deliver to the Council Bonds or Bank Guarantees in an amount equivalent to 25% of the construction costs for the particular item of Works. (b) The Developer advises and the Council acknowledges its awareness that the Bonds or Bank Guarantees may be supplied by the Builder and form a part of the security held by the Developer from the Builder under the terms of the Construction Contract, provided that: (i) any Bond or Bank Guarantee provided by the Builder benefits the Council and satisfies the requirements of this agreement; and (ii) the Developer procures an agreement from the Builder that the Council will be entitled to call on any Bond or Bank Guarantee provided by the Builder, in accordance with the terms of this agreement and the terms of any Construction Contract. (c) Within 10 Business Days after the Defects Liability and Maintenance Period for a particular item of Works has expired Council must (if it has not called on it) return the Bond or Bank Guarantee referred to in clause 11.3(a) of this Schedule for that item of Works (or any remaining balance of it) to the Developer. (d) Notwithstanding clause 11.3(c) of this Schedule, if during the Defects Liability and Maintenance Period for a particular item of Works, the Council issues a Rectification Notice, then the Council need not deliver the balance of any Bonds or Bank Guarantees provided to it until the Rectification Notice has been complied with. The Developer undertakes the Works entirely at its own risk.
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Security for Defects Liability. (a) Prior to the issue of a Certificate of Practical Completion for each item of the Works the Developer must deliver to the Council Bonds or Bank Guarantees in an amount equivalent to 25% of the construction costs for the particular item of Works. (b) The Developer discloses and the Council acknowledges that the Bonds or Bank Guarantees may be supplied by the Builder and form a part of the security held by the Developer from the Builder under the terms of the Construction Contract, provided that: (i) any Bond or Bank Guarantee provided by the Builder benefits the Council and satisfies the requirements of this agreement; and (ii) the Developer procures an agreement from the Builder that the Council will be entitled to call on any Bond or Bank Guarantee provided by the Builder, in accordance with the terms of this agreement and the terms of any Construction Contract.
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Related to Security for Defects Liability

  • Defects Liability 11.1 In case of a defect, the Seller will, without undue delay and free of charge, make good any defects and/ or deficiencies in its Supplies and Services which were already existent at the time of transfer of risk to the Customer by, at its sole discretion and as the nature of the defect or deficiency would reasonably require,repair or replacement. The Customer has the obligation to inform the Seller of any defect and/ or deficiency without undue delay after detection of the same. 11.2 Should remedy of a defect and/ or deficiency finally fail, the Customer shall – without prejudice to claim damages – be entitled to terminate the Contract or ask for an equitable adjustment of the Contact price. Except as otherwise provided in the Contract, a remedy shall be deemed to have finally failed after the third unsuccessful attempt by the Seller to rectify the defect and/or deficiency. 11.3 Defect liability claims shall become statute-barred after a period of 12 months, counted from the date of completion of the concerned Supplies and/or Services (“Defect Liability Period”). In case and where a longer Defect Liability Period is mandatory as per applicable law, the Defect Liability Period mentioned in the preceding sentence shall be replaced by such mandatory longer period. If any part of the Supplies and Services has to be repaired or replaced during the Defect Liability Period, the Defect Liability Period for the relevant part of the Supplies and Services shall begin for another period of 12 months, however, provided that the Defect Liability Period shall not be (further) extended beyond 24 months from the from the date of completion of the concerned Supplies and/ or Services. 11.4 The Seller shall not be liable for any damage / defect occurring after transfer of risk to the Customer being a result of careless usage, inappropriate consumables/ fuels, defective and/ or deficient civil works, inappropriate ground conditions or special outside influences which are not specifically provided for in the Contract. Should the Customer or any third party perform improper maintenance works or effect any changes to the Supplies and Services the consequences thereof shall not be covered under subject defect liability obligations of the Seller. 11.5 The Seller shall not be liable for normal wear and tear. Wear-parts are excluded from any defect liability, except in case the Customer provides proof that the damage or defect is not caused by normal wear and tear. 11.6 Any further liability for defect liability claims is – as far as permissible by applicable law – excluded.

  • Liability for Damage Each party shall be liable to the other for all damage to the property of the other negligently, recklessly or intentionally caused by that party (or their agents, employees or invitees), except to the extent the loss is insured and subrogation is waived under the owner's policy.