Acontractor claimed against an employer for the repayment of a quality assurance deposit after the expiration of the warranty period, when the final acceptance had been completed and the construction project had been delivered for use. But the employer refused to repay the quality assurance deposit – on the grounds of the existence of quality defects within the warranty period – and put forward an application of appraisal of project quality.
How should a contractor deal with an application of appraisal that the employer has requested within the warranty period? And what are the conditions under which an appraisal of project quality should be carried out? If the arbitral tribunal decides not to conduct such an appraisal, how should the alleged quality defects that the employer has claimed be dealt with?
Tan Zhongwen is general counsel of the AVIC Institute of Geotechnical Engineering, and an arbitrator at Beijing Arbitration Commission/Beijing International Arbitration Centre. BAC/BIAC’s case manager, Wu Wendi, also contributed to the article