Defect management during the statutory warranty period: a complete guide for developers

Managing defects during the statutory warranty period is a key process for every developer after handing a property over to buyers. Under Article 556 of the Polish Civil Code, the statutory warranty period lasts 5 years and requires systematic analysis of claims and repair of defects resulting from workmanship errors. Moreover, managing this process properly can significantly reduce service costs and improve customer satisfaction.

What does a typical after-sales service process look like?

A typical service process involves a number of participants besides the customer and the developer. In fact, the general contractor, the subcontractors for individual elements and the material manufacturers are also involved. Nevertheless, it is the developer who bears the main obligation to establish the cause of a defect and repair it.

Customers usually report defects to developers by email or via dedicated contact forms. A member of the service department then analyses the claim, checks the attachments and assesses whether the complaint is justified. In many cases a site visit is needed to determine the cause of the problem.

Types of defects during the warranty period

In defect management we can distinguish three main categories of claims. Moreover, each requires a different approach and generates different costs for the developer.

• Defect resulting from improper use – the developer is not obliged to repair it, for example mould on a wall caused by lack of ventilation
• Material defect – the developer carries out the repair and reports the fault to the manufacturer, for example a factory-defective window
• Workmanship defect – the most common and most problematic situation, requiring a warranty process with contractors

Challenges of traditional defect management

Once a workmanship error is detected, the developer has to carry out a detailed analysis of the as-built documentation. As a result, the whole process becomes tedious and very costly. Additionally, if the developer proves the contractor at fault, they can require the repair to be carried out at the contractor’s expense.

Unfortunately, as-built documentation often turns out to be incomplete. In particular, a large share of non-conformities is communicated verbally, which the contractor can dispute. Consequently, the full cost of repair falls on the developer, especially for serious defects such as a leaking roof or flooding.

Cost comparison: traditional vs digital defect management

Digital defect management during the warranty period

Service departments manage several, sometimes dozens, of developments during the warranty period. As a result, searching through thousands of documents becomes inefficient. Digitalising service and construction processes offers a solution to this problem.

In addition, thanks to available technology, developers can carry out handovers and inspections using mobile devices. As a result, all non-conformities are recorded on the relevant floor plans, with photo and written documentation attached.

Introducing a subcontractor database makes it quick and easy to filter defects by the responsible company. Once construction is complete, the service department has access to the full history of recorded issues, broken down by unit and common areas, together with a complete database of subcontractors.

Benefits of digital defect management

When a unit buyer reports a defect, the service department can efficiently trace back the work related to that specific problem. Staff then analyse the history of the defect, which saves considerable time and resources.

• Comprehensive documentation – each issue contains a full history with descriptions, photos and contractor details
• Quick identification of responsibility – the system automatically shows who carried out the work
• Lower legal costs – a strong evidence base in disputes with contractors
• Better customer relations – faster responses to claims improve buyer satisfaction

Summary

Defects that appear during the warranty period can significantly affect the project budget. It is in the interest of the developer and the general contractor to pass as much of the repair cost as possible on to the contractors responsible for the faulty elements. At present, service departments generate high costs mainly because of a low level of digitalisation.

Most service departments rely on email communication and simple ticketing systems. That is why introducing digital solutions already at the construction stage enables efficient recording and management of non-conformities. As a result, it delivers significant savings in the time and budget allocated to service work.