What is a latent defect in the context of contracting?

A latent defect refers to a hidden flaw or issue that is not apparent at the time of inspection or acceptance of a contract. In the context of contracting, this type of defect may affect the performance of goods or services but might only become evident after final acceptance or during use. The significance of recognizing latent defects lies in the concept that they can lead to serious concerns down the line, often requiring remedial action or even contract disputes.

Understanding latent defects is crucial for both contractors and contracting officers because they indicate that a seemingly compliant deliverable might have underlying problems that could impact functionality or safety. This awareness emphasizes the importance of thorough inspections and risk assessments throughout the contracting process.