Limitation periods might not be the most exciting part of construction law, but they are often the most important. Get them right, and you protect your client’s position. Get them wrong, and a perfectly valid claim can disappear overnight.
This guide breaks down the key routes for construction defect claims and, more importantly, highlights where professionals often get caught out.
Contract Execution: A small detail with big consequences
How a contract is executed (as a simple contract or a deed) directly affects how long a party has to bring a claim. Under the Limitation Act 1980:
- Simple contract: 6 years from breach
- Deed: 12 years
This is reflected in standard forms like the JCT Design and Build Contract, which have separate execution blocks for each. Deeds involve extra formalities and are usually preferred for larger projects, but the choice is ultimately the clients.
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The Building Safety Act 2022: Changing the landscape
The Building Safety Act 2022 further extends limitation periods for residential claims:
- 30 years for dwellings completed before 28th June 2022
- 15 years for dwellings completed after that date
It’s the completion date, not the contract date, that matters. These periods apply under the Defective Premises Act 1972, meaning developers, contractors, and designers can face claims decades later. Claims can also be made by anyone who later acquires an interest in the dwelling, like leaseholders or subsequent owners.
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Negligence and latent defects: The claim that doesn’t disappear
Even if a contractual limitation period has expired, latent defects can still trigger negligence claims. Under the Limitation Act 1980, as modified by the Latent Damage Act 1986:
- 6 years from when the damage occurs, or
- 3 years from when the claimant knew (or should have known)
- 15-year longstop from the negligent act
In short, defects can reappear years, sometimes decades after completion, creating a long period of potential liability for anyone involved in design or construction.
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Golden nugget: The defect report trap that we avoid at Potter Raper
How you word a defect report is key, as it can make or break a claim.
Under the Latent Damage Act 1986, a claimant has 3 years from when they knew or reasonably should have known about the damage. If a report says a defect was “obvious” or “should have been spotted earlier,” it can accidentally start that clock sooner, potentially barring the claim.
The trick? Stick to the technical facts. Note where defects were hidden or not reasonably discoverable without detailed inspection, but don’t decide when the claimant “should” have known.
At Potter Raper, we make this a priority. Our reports are evidence-first, carefully worded, and avoid accidental legal conclusions, keeping clients safe while still giving a clear, professional assessment.
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Final Thoughts: Three routes, one key risk
Construction defect claims generally follow three routes:
- Contractual: 6 years (simple contract) or 12 years (deed)
- Defective Premises Act: 15 or 30 years
- Negligence (latent defects): 6 years from damage or 3 years from knowledge, capped at 15 years
Rules differ, but they often overlap, this matters as work may finish but liability doesn’t.
Blog written by Meryem Ascieli, Trainee Project Manager
