Law For Construction In Pennsylvania
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FAQ
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.
The law exempts from the registration requirements contractors who perform less than $5,000 worth of home improvements in a calendar year.
So the rule is simple enough. For most breach of contract cases, there is a four-year statute of limitations.
As long as the Complaint is filed before the end of the four year period and service has been attempted, the defendant cannot claim the protection under the statute of limitations. The statute of limitations may be held in abeyance or tolled by the incapacity of one of the parties.
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.
Home-Improvement Contractor's License: There is no license specifically for commercial contracting. Instead, construction contractors who perform work on residential properties are required to obtain a Home-Improvement Contractor's License through the PA Attorney General's Office.
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.
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.
Offer and Acceptance: One party must make an offer, and the other must accept it. Mutual Consent: Both parties agree to the terms without coercion. Contract law often refers to this condition as a "meeting of the minds." Competence: The parties must have the legal capacity to agree.
