In Saudi Arabia, the "ten-year warranty" (or *al-daman al-‘ashari*) is a common term referring to the statutory liability for the total or partial collapse of buildings and structures, as well as for latent defects that threaten the structural integrity and safety of a construction. Article 29 of the Implementing Regulations of the Saudi Building Code Law establishes the joint and several liability of the designer—who oversees the construction—and the builder (or contractor) to provide compensation in the instances specified therein. This liability applies for a period of ten years from the date of issuance of the occupancy certificate.
The significance of this liability lies in the fact that certain structural defects may not be apparent at the time of the building’s handover; instead, they might only come to light after years of use. Furthermore, it is essential to distinguish between ten-year liability, insurance against latent defects, and the maintenance guarantee that may be stipulated in the contract—as each carries a different scope and set of provisions.
In this guide, we explain what the ten-year liability (decennial liability) entails, the situations it covers, who bears the responsibility, and how a property owner can protect their rights—both before entering into a contract and after taking possession of the building.
alert: This article provides general information for awareness purposes; it does not constitute legal advice, nor does it serve as a substitute for reviewing the relevant statutory texts, the insurance policy, or the project contract.
What is the ten-year liability (decennial liability) for contractors in Saudi Arabia?
The term "ten-year guarantee" is used, or Decennial Liability, to refer to the ten-year extended liability for specific types of structural deterioration and defects that threaten the durability and safety of a building.
The fundamental provision governing this liability in Saudi Arabia is Article 29 of the Implementing Regulations of the Saudi Building Code Law. This article establishes the joint liability of the designer—who oversees the construction—and the contractor to compensate the owner for any total or partial collapse of the structure, as well as for any latent defects that threaten the building’s structural integrity and safety.
The article also stipulates that an authorized designer shall be held liable for design defects if their work is limited to creating the design, without supervising its execution.
These rulings affirm that liability does not necessarily cease upon the expiration of the standard maintenance period, and that the handover of a building does not automatically terminate liability for defects that fall within its legal scope.
The official text can be viewed in Implementing Regulations for the Saudi Building Code Law — Umm Al-Qura Newspaper.
What does the ten-year warranty cover?
Ten-year liability centers on structural collapse and latent defects that threaten the stability and safety of a building, rather than on every minor issue that may appear.
Among the most notable situations that require an engineering assessment are:
- Total collapse: The complete collapse of the building or structure.
- Partial collapse: Collapse of a portion of the building or one of its structural elements.
- Serious structural defects: Such as certain instances of weakness in columns, beams, or foundations, where these affect the structural integrity and safety of the building.
- Such as certain instances of weakness in columns, beams, or foundations, where these affect the structural integrity and safety of the building. Such as certain instances of weakness in columns, beams, or foundations, where these affect the structural integrity and safety of the building.
It is important not to automatically assume that every crack or instance of subsidence constitutes a defect covered by the ten-year warranty. Determining the nature of the issue, its severity, its underlying causes, and whether it relates to the design or the execution requires a professional technical assessment.
Furthermore, the definition of a latent defect provided in the regulations encompasses defects in construction works or their protective elements, as well as defects related to design, materials, location, or construction that were not discovered at the time the occupancy certificate was issued.
What about defects resulting from the soil or the design?
The importance of the ten-year guarantee is not limited to visible defects in execution.
Article 29 stipulates that the obligation to provide compensation remains in effect, even if the defect or collapse stems from a flaw in the land itself, or if the employer consented to the construction of the defective building.
This highlights the importance of addressing soil testing, structural design, material quality, and execution as interconnected elements in the safety of a project.
For this reason, property owners are advised to retain the soil investigation report, approved plans, and structural testing reports, rather than merely documenting the final appearance of the building upon its completion.
What is the difference between decennial liability and insurance against latent defects?
A common mistake is to treat the terms "ten-year warranty" (decennial liability) and "insurance against latent defects" as one and the same.
Decennial liability is a statutory obligation, the scope of which—along with the parties held liable—is defined by regulation. Insurance against latent defects, on the other hand, is an insurance coverage governed by the specific policy and its terms and conditions; it entails its own distinct requirements, scope of coverage, and claims procedures.
According to information published by the Insurance Authority, insurance against latent defects is mandatory for contractors of residential and commercial buildings—with the exception of government-owned buildings—and is a prerequisite for obtaining building permits within its scope of application.
The core coverages outlined by the Authority include defects arising in the structural framework—along with any resulting damage to the rest of the building—flaws stemming from faulty design that went undetected during construction, waterproofing of external surfaces, and certain deficiencies related to materials, soil testing, or the construction process itself.
The insurance coverage period referred to with the Authority is ten years, commencing from the date of construction completion and the issuance of the occupancy certificate.
| Basis of comparison | Decennial Liability | Insurance against latent defects |
|---|---|---|
| nature | Legal liability | Insurance coverage |
| Reference | Article 29 of the Implementing Regulations of the Saudi Building Code Law | The insurance policy and the provisions governing it |
| Duration | Ten years from the date of issuance of the occupancy certificate, in accordance with Article 29. | Ten years, according to information published by the Insurance Authority. |
| Scope | Structural deterioration and latent defects that threaten the durability and safety of the construction, in accordance with the article | Defects and damages covered under the policy, and the terms and conditions of the policy |
| What should be verified | Responsible Parties and the Scope of Legal Liability | Issuance of the document, its scope, exclusions, and claims procedures |
Important note: Having an insurance policy does not mean that every instance of damage or every claim is automatically covered. You must refer to the approved policy and its terms and conditions whenever a defect arises.
For more information, see Official information from the Insurance Authority regarding insurance against latent defects.
What does the ten-year guarantee not cover?
The ten-year warranty does not mean that the contractor is automatically liable for every problem that arises in the building over a ten-year period.
For instance, certain issues may arise from normal wear and tear, usage, inadequate maintenance, or damage to finishing materials. Once such issues appear, they are not automatically classified as defects falling under the scope of ten-year liability.
Among the examples that require differentiation are:
- Aesthetic observations: Such as some scratches in the paint or damage to certain tiles; these do not necessarily constitute defects that threaten the building's structural integrity or safety.
- Periodic maintenance tasks: Such as routine maintenance of devices and equipment, which may be covered by a contract or product warranty.
- Modifications after receipt: Such as making structural modifications without a proper technical assessment, which may affect the evaluation of the causes of a defect and the responsibility for it.
- Cracks or water leaks: They cannot be classified based on appearance alone; they may be localized, or they could be linked to a structural defect, insulation issue, design flaw, or an execution error. An inspection is required to determine their nature.
It is necessary here to distinguish between matters falling under decennial liability, those covered by an insurance policy, and those governed by maintenance warranties and the contract itself. The outcome may vary depending on the nature of the issue, its causes, and the applicable legal provisions.
When does the ten-year warranty period begin?
According to Article 29 of the Implementing Regulations of the Saudi Building Code, the ten-year period begins from Date of issuance of the occupancy certificate.
A certificate of occupancy is an authorization issued by the competent municipal authority, allowing a building to be occupied after verifying that it complies with code requirements.
Therefore, it is important for the property owner to retain a copy of the certificate of occupancy and verify its date of issuance, rather than relying solely on the date the keys were handed over when calculating the statutory period.
It is also advisable to retain the handover record, the contract, approved plans, inspection reports, and the insurance policy (if applicable), as these documents may prove important when evaluating any future claim.
Who is responsible for defects: the contractor or the engineer?
Article 29 of the executive regulations defines various roles based on the responsibilities of each party.
The designer overseeing the construction execution and the party carrying out the work (the contractor): The article establishes their joint and several liability for compensation in the cases it specifies, relating to the total or partial collapse of the structure, as well as hidden defects that threaten the building's stability and safety.
Certified Designer: If his work is limited to creating the design, without supervising its execution, the provision establishes his liability for design defects.
Therefore, it is not enough to simply know the name of the contractor or the engineering firm; one must also understand the scope of each party’s work—whether they are responsible for design, supervision, or execution—and refer to the relevant contracts, plans, and documentation should any issues arise.
Furthermore, documenting the execution stages and reviewing specifications and tests help in identifying the nature of a defect, its causes, and the parties involved.
Can a contractor exempt themselves from the ten-year liability (decennial liability) through a contract?
Paragraph 4 of Article 29 stipulates that any provision intended to exempt the contractor or the supervising designer from liability—or to limit such liability—shall be void.
Consequently, it cannot be assumed that a contractual clause exempting the contractor or the supervising designer from this liability—or limiting it—is enforceable simply because the owner has signed it.
Nevertheless, the contract should be read in its entirety, distinguishing between statutory liability and other contractual obligations; one should not pass judgment on a specific clause without examining its wording and context.
If a contract contains a clause regarding exemption from liability for structural defects, it is advisable to have it reviewed by a qualified lawyer to understand its legal implications for the project.
How can you protect your rights when building a villa or a new structure?
You can reduce risks and improve your ability to substantiate facts by following practical steps from the very beginning of a project:
- Draw up a clear contract: Define the scope of work, specifications, approved plans, and the responsibilities for design, supervision, and execution.
- Check the official documents: Keep the building permit, certificate of occupancy, plans, soil reports, and relevant tests.
- Check the insurance: Request information regarding the latent defects insurance policy, and ensure that it is linked to the project and covers the appropriate scope.
- Document the implementation stages: Keep the photographs, reports, correspondence, and inspection and handover records.
- Make a note of any observations upon receipt: Record any visible defects in the handover document, and keep a copy of it.
- Request a technical assessment when a defect appears: Document the issue, including the date it occurred, and ask a qualified engineer to determine its nature, severity, and potential causes.
- Take the initiative to make a claim: Notify the relevant party in writing, verify the procedures for informing the insurance company and the requirements for filing a claim, and consult a legal professional if necessary.
If large cracks appear, or if there are signs suggesting a structural hazard, the safety of the occupants must be the priority; avoid using the affected area, seek an urgent engineering assessment, and evacuate the premises if there is any suspicion of an immediate danger.
How do you choose a contractor who prioritizes the quality of execution and the safety of the building?
Choosing a contractor based solely on price or the visual appearance of their previous projects is not enough. It is also essential to verify their ability to manage the execution phases, adhere to plans and specifications, document inspections, and ensure that contractual responsibilities are clearly defined.
Before signing a contract, ask about the following points:
- Are the scope of work and the construction specifications clear in the contract?
- Are the scope of work and the construction specifications clear in the contract?
- How is the quality of materials and work monitored during execution?
- What documents will be delivered upon completion of the project?
- What are the maintenance arrangements and contractual guarantees?
- What is the status of the latent defects insurance policy, if it is required for the project?
These questions help evaluate how a contractor operates, rather than relying on vague promises that do not clarify what will actually be carried out.
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Frequently Asked Questions About the Ten-Year Warranty in Saudi Arabia
What is the duration of the ten-year warranty in Saudi Arabia?
The duration is ten years from the date of issuance of the occupancy certificate, in accordance with Article 29 of the Implementing Regulations of the Saudi Building Code Law.
Does the ten-year warranty begin from the date the keys are handed over?
No; the start of the period specified in Article 29 is the date the occupancy certificate is issued, not merely the date the keys are handed over.
Does the ten-year warranty cover cracks in the walls?
This depends on the nature, causes, and impact of the cracks. Not all cracks are structural defects that threaten the durability or safety of a building; therefore, they must be evaluated by a qualified engineer.
Does the ten-year warranty cover finishes?
Not all finishing defects automatically fall under the scope of ten-year liability. However, an insurance policy may cover certain damages caused to the rest of the building as a result of a defect that is itself covered. This must be determined based on the nature of the defect, the terms of the policy, and the applicable legal provisions.
Is insurance against latent defects mandatory in Saudi Arabia?
According to the Insurance Authority, insurance against latent defects is mandatory for contractors of residential and commercial buildings—with the exception of government-owned buildings—and is a prerequisite for obtaining building permits. It is essential to verify the specific requirements applicable to a given project.
Can a contractor be exempted from the ten-year liability (decennial liability) in a contract?
Article 29 stipulates the nullity of any provision intended to exempt the contractor or the supervising designer from liability, or to limit such liability.
What should I do if structural defects appear after handover?
Document the defects and the date they first appeared, seek a professional engineering assessment, notify the relevant parties in writing, and verify the procedures for filing an insurance claim. If there are any signs of a structural hazard, prioritize the safety of the occupants.
Conclusion
The ten-year liability (decennial liability) in Saudi Arabia is a key component of the framework designed to ensure building safety and protect the rights of property owners. Effectively leveraging this protection requires an understanding of the scope of statutory liability, the ability to distinguish it from insurance against latent defects and maintenance warranties, and the preservation of documentation that can help substantiate claims when necessary.
Before entering into a contract for the construction of a villa or a commercial building, ensure that the responsibilities of all parties are clearly defined, construction phases are documented, insurance requirements are verified, and that you retain the certificate of occupancy and the handover protocol. Should a potential defect arise, do not rely on mere impressions; instead, obtain a professional engineering assessment and verify the appropriate legal or regulatory procedures to follow.
Official References
