Adequacy of defects liability periods for public construction projects in Ghana

Abstract

PurposeThe practice of the defects liability period (DLP) is a risk management strategy meant to secure durable and high-quality works. However, construction products continue to malfunction even after the expiration of DLPs. This study seeks to determine the adequacy of DLPs existing in the construction industry and propose appropriate DLPs for construction projects in the Ghanaian construction industry.Design/methodology/approachApplying quantitative research strategy, 124 questionnaires were retrieved from construction professionals surveyed. The data obtained were analysed using descriptive statistics, Cramer’s V and the significance test with the aid of Stata software.FindingsIt was found that defects start showing in both buildings and roads within 12 months after being handed over for the client’s use. The significance test and Cramer’s V analysis indicate low concordance amongst respondents that the 6–12 month DLPs existing in Ghana are adequate. It is found that the existing DLP practice does not provide sufficient security to clients.Practical implicationsConstruction project clients will need to include the tenderer’s proposed DLP as part of the tender evaluation criteria with the objective of picking up a signal of the quality of work to be delivered.Originality/valueThis paper is one of the pioneering studies addressing the issue of the adequacy of DLPs in the construction industry in the Sub-Saharan Africa region. The findings trigger policy and regulatory changes in conditions guiding construction contracts procured in most developing countries that have adopted and adapted to the World Bank Public Procurement Guidelines.