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ARTICLE · 25 JULY 2011

Limitation of time to commence proceedings for building defects

A reminder to identify all defects as early as possible after defects are noticed.

AustraliaReal Estate and Construction

The NSW Court of Appeal handed down an important judgment last week in relation to the time to commence proceedings for damages arising from building defects. The judgment clarifies previous case law on the point and serves as a reminder to investigate the extent of building defects and identify all of the parties potentially responsible for the defects as early as possible after defects are noticed.

Limitation Act 1969 (NSW)

The time for commencing proceedings in any matter is limited under various pieces of legislation. The limitation period for taking action on any particular claim ranges from as little as 21 days and up to 12 years, depending on the nature of the claim. Pursuant to the Limitation Act, proceedings for breach of contract or negligence must be commenced within six years 'running from the date on which the cause of action first accrues'.1

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