California Supplemental (CSE) Practice Exam

What type of defect allows for a recovery period of four years following substantial completion?

1. Latent defects

2. Patent defects

3. Improper inspections

4. Materials failure

The correct answer is: Patent defects

The correct choice is patent defects. A patent defect is a flaw or issue in construction that is obvious and can be easily identified upon inspection. Such defects typically come to light shortly after substantial completion of a project. In California, the statute of limitations for filing a claim related to patent defects is four years from the date of substantial completion. This timeline reflects the expectation that any apparent issues should be discovered and reported shortly after the work is done. In contrast, latent defects are hidden issues that may not be immediately visible and could take longer to discover, often leading to different timelines for recovery. Improper inspections pertain to the inspection process rather than directly to the defects themselves, while materials failure relates to the performance of materials used in construction but does not specifically define a type of defect with a known recovery period. Thus, patent defects are correctly associated with the four-year recovery period due to their nature of being readily identifiable after project completion.