DDA approves guideline to fix accountability of builder in case of structural defect

NEW DELHI: Real estate developers, architects and engineers involved in the construction of the project will be accountable for any structural defects for 10 years, according to new guidelines approved by the Delhi Development Authority (DDA) for decennial latent defect liability.

Professionals such as architects, engineers and supervisors will have to take professional liability insurance and the developers or promoters will have to take latent defect liability insurance for 10 years from the issuance of occupancy and completion certificate, say the guidelines.

“The Real Estate Regulatory Authority has a provision of penalising the builder for structural defects in the building but for a certain period. With the new guidelines, the responsibility is fixed for 10 years. Even if the builder is not present, the occupants will get the compensation from the insurance company,” said a DDA official, who did not wish to be identified.

A statement issued by the DDA said, “In order to ensure structural safety of the buildings after the construction of the architects, engineers, developers and promoters of plot size 750 sqm and above, latent defects liability insurance was introduced in the ‘Unified Building Bye Laws for Delhi 2016’. Now the guideline for the same has been approved.”

The mandatory insurance is in line with the international practice, said industry executives.

“This move brings the onus equally on all the major players involved in construction of plots, RWAs (resident welfare associations) and rehabilitated residential colonies. Even before the guidelines were approved, we have been ensuring good quality of construction materials being used under the supervision of experienced engineers, architects and supervisors at our rehabilitation projects,” said Nayan Raheja, director, Raheja Developers.