Construction Law And Dispute Resolution In Pennsylvania
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FAQ
So the rule is simple enough. For most breach of contract cases, there is a four-year statute of limitations.
Arbitration is the method contractors and lawyers prefer when it comes to dispute resolution. Most contractors list it as the way to address disputes in contractual terms. If the parties opt for arbitration, they must choose a neutral third party with the relevant experience to bring them to an amicable solution.
2d 692, 693 (Pa. Super 1993)). Thus, contractors can enjoy a sense of security that they will not face claims after 12 years have passed since construction was completed. The statute of repose and statute of limitations, while similar, are distinct and provide separate protections for contractors.
Pennsylvania applies a two year statute of limitation for personal injury and property damage and a four year statute of limitations for breach of contract actions. 42 Pa. C.S.A. § 5524; 42 Pa.
'Construction dispute resolution' is an umbrella term for the process used to deal with and settle a conflict that arises out of a project involving stakeholders to a construction contract – for example, property owners, suppliers, contractors and subcontractors.
The Most Common Causes of Construction Litigation Nonpayment: When general or trade contractors complete a project and the owner does not provide the agreed-upon compensation, contractors can sue for nonpayment. Failure to Meet Contractual Terms: Like with all contracts, the devil is in the details.
Pennsylvania's statute of repose sets a hard deadline of 12 years after the completion of construction for bringing any action related to construction defects. This applies regardless of when the defect was discovered, with some exceptions for fraud or intentionally concealed defects.
These also vary by state. In California, the statute of repose is four years for most defects, but 10 years for latent defects (those that aren't observable right away, such as a faulty foundation). In Georgia, the statute of repose is eight years for all claims related to design or construction of the building.
When disputes arise on a construction project, the initial and most favorable resolution method is negotiating. When a resolution cannot be reached through negotiations, a dispute may be resolved either through litigation or in some other forum—known as alternate dispute resolution.
If a contractor is licensed in Pennsylvania, homeowners can file a complaint with the Pennsylvania Office of Attorney General's Bureau of Consumer Protection. The Bureau investigates complaints and takes action against contractors who violate consumer protection laws.
