Limitation periods in construction contracts
Published by a LexisNexis Construction expert
Practice notesLimitation periods in construction contracts
Published by a LexisNexis Construction expert
Practice notesThe Limitation Act 1980 (LA 1980) (as amended by the Latent Damage Act 1986 (LDA 1986)) governs the time limits for bringing different types of legal claims. If a claim is brought outside of the relevant limitation period, the defendant will be able to plead in defence that the remedy sought by the claimant is time-barred. The most relevant limitation periods for the construction industry are those for contractual and tortious (negligence) claims, although the LA 1980 also specifies time periods for actions relating to personal injury, defective products and defamation. Further, there are specific time limits which apply to claims under relevant statutes, including the Defective Premises Act 1972, the Building Act 1984, and the Building Safety Act 2022.
Limitation can be particularly relevant in relation to claims arising out of defective works, as the cause of action may have arisen some years before the problem manifests itself. An example is where the contractor installs faulty foundations which result in cracking to walls and subsidence, but the problem only becomes evident some years later. In such a case,
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