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What is the Texas statute of limitations on construction defects?

On Behalf of | Jul 16, 2024 | Construction Contracts

Construction projects can involve many different people and tasks. When things go wrong, it can lead to disagreements and legal disputes. In Texas, construction defect cases often involve issues like breach of contract, unpaid work, or poor construction quality. 

Understanding the statute of limitations for these cases is important because it sets the deadline for when you can take legal action.

The statute of limitations

The statute of limitations is the time period within which you must file a lawsuit. The general rule for construction defects is that you have four years to file a claim. This means that if you discover a problem with the construction, you must file a lawsuit within four years from the date you discovered the issue or should have reasonably discovered it. This rule resolves legal disputes in a timely manner, while evidence is still fresh and available.

The discovery rule and latent defects

One important aspect of the statute of limitations is the “discovery rule.” This rule acknowledges that some construction defects are not immediately noticeable. For example, you might not see water damage or structural issues until years after the completion of a project. Under the discovery rule, the four-year period starts when you discover the defect or when you reasonably should have discovered it. This helps protect property owners from hidden problems that emerge long after completion.

Statute of repose

However, Texas also has a statute of repose, which sets a final deadline for filing claims, regardless of when the defect was found. The statute of repose for construction defects is ten years from the date of substantial completion of the construction project. This means that even if you discover a defect late, you cannot file a lawsuit more than ten years after the project is finished.

What this means for you

Understanding the statute of limitations for construction defects in Texas is crucial for anyone involved in a construction dispute. While you have a limited time to file a lawsuit,  you cannot file any claims more than ten years after the project’s completion. This helps disputes promptly and fairly, allowing both parties to move forward with clarity.