You’re required to fix mistakes at your own cost.

To meet this condition, you must be liable for the cost of rectifying any defects in your work. You do not need to actually perform the work that fixes the mistake, so long as you’re liable for the cost of the defect to be fixed.

A contract which states that you’re required to fix mistakes at your own cost may indicate that you have fulfilled this condition. However, this condition will only be fulfilled if this term in the contract can actually be enforced by the client should mistakes in your work happen.

You will not meet this condition if you invoice the client for time spent to fix defects in your work, or if you fix mistakes during your usual working times under the contract. This is because you will not have been liable for the cost of fixing mistakes, as in both these situations the client will have paid for the time taken to correct defects.

Example

Jordan is a software specialist who provides services through his company JordanCo. JordanCo has contracted with a large firm. JordanCo's contract doesn't specify whether he is personally responsible for correcting his mistakes.

In practice, Jordan invoices for fixing any mistakes he makes. Therefore, JordanCo does not meet the third condition of the results test.