LDA-Based Model for Assessing the Defect Liability System in Residential Buildings’ Maintenance Phase

Abstract

This study aimed to assess the defect liability system for repairing various defects during residential buildings’ defect liability period using the loss distribution approach (LDA). It examined 6,087 defect cases from 48 residential buildings in the Republic of Korea between 2008 and 2017 for which defect disputes occurred. The analysis confirmed that damage and water problems were found to be serious defects in the reinforced concrete work, while relatively varied serious defects occurred in the finish work. Specifically, the structure and finish show high-severity/high-frequency characteristics; thus, attention must be paid to their quality control. Deriving the defect cost ratio’s distribution for each defect liability period showed that defect liability bonds must be increased to cover the 2- and 10-year defect liability periods and must be decreased for the 3- and 5-year defect liability periods. A defect classification matrix suitable for different defect liability periods for each country and a defect liability system evaluated using the LDA-based model can provide a basis for reasonably adjusting defect costs among the parties involved in defect disputes.