What do landlords and tenants need to know about Decennial Liability in Construction?

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Decennial Liability in Construction is a legal obligation imposed on builders, architects, and developers to be responsible for major structural defects in a building for a period of ten years from the date of completion. It is a mandatory liability regime in many civil law countries and provides long-term protection for property owners.

Key Facts About Decennial Liability

• Covers major structural defects that threaten the stability or safety of the building
• Applies for a mandatory 10-year period from the date of practical completion
• Cannot be contractually excluded or waived:it is a statutory obligation in applicable jurisdictions
• Covers defects in foundations, load-bearing structures, waterproofing, and building envelope

What Landlords Need to Know

• As property owners, landlords benefit from decennial liability protection against structural defects
• Landlords must document all defects promptly and notify the responsible builder within the 10-year period
• Decennial liability insurance (often mandatory for contractors) provides financial backing for claims
• Landlords purchasing existing buildings should verify whether the 10-year period is still active

What Tenants Need to Know

• Tenants do not directly benefit from decennial liability:protection runs to the building owner
• However, structural defects addressed under decennial liability improve the safety and habitability of leased spaces
• Tenants should report structural concerns to landlords promptly to ensure claims are made within the liability window
• Lease agreements should address how structural defect remediation affects rent obligations and access

Decennial Liability is a critical long-term protection for building owners against major structural failures. Both landlords and tenants should understand its scope, duration, and enforcement process to ensure that construction defects are addressed promptly and comprehensively within the applicable liability period.

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