Florida Statute of Limitations on Construction Defect Claims

By Cotney Constructon Law.

New Florida law sheds light on contract language.

A new Florida law went into effect on July 1, 2017 to clarify the start of the limitations period on construction claims. Under the old Florida law, construction defect suits had to be brought within four years from the end of the project, meaning the clock for the statute of limitations for construction defects typically started when the owner took possession of the property, when a certificate of occupancy was issued, or when the contract was terminated or completed. If the defect was latent, hidden, or unable to be ascertained, the time frame for the statute of limitations begins on the date the defect was discovered or should have reasonably been discovered with due diligence, up to an absolute limit of 10 years (known as the statute of repose).

The old Florida law created a loophole as “completion of contract” was not defined in specific terms. If an owner never made final payment, then the statute of limitations for construction defects could have been extended indefinitely. The new law sheds light on the “completion of contract” language by defining it as “…the later of the date of final performance of all the contracted services or the date that final payment for such services becomes due without regard to the date final payment is made.” This effectively removed an owner’s ability to allow the statute of limitations to be extended indefinitely.

Author’s note: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation. Regulations and laws may vary depending on your location. Consult with a licensed attorney in your area if you wish to obtain legal advice and/or counsel for a particular legal issue.

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Editor’s note: This article was first published on Cotney Construction Law’s blog and can be viewed here.