Application Of The ´Ultimate Limitation Period´ Extended

Limitations and time bars abound in construction arrangements. The application of the 'ultimate limitation period' of ten years has recently expanded, but a lot of work done before 1 August 2008 will still slip through the cracks.

Contractor claims are often expressly barred unless they are made within a specified period and defects must be notified within 3, 6 or 12‑months, depending on the contract. The Home Building Act 1989 requires builders to give statutory warranties for seven years, but limits home warranty insurance indemnity to two years for non‑structural and six years for structural issues. The Limitations Act 1969 bars claims six years after the 'cause of action accrues'.