The rules governing complaints and limitation periods in construction cases often give rise to misunderstandings – and can have serious consequences. Many people believe that as long as five years have not passed since takeover, their claims are "safe." This is incorrect.

In reality, claims can be lost as early as three years after takeover – and sometimes even earlier.

Here we explain what you need to know as a builder, contractor, or consumer.

1. Statute of limitations – what does it mean?

Prescription means that you lose the right to claim something, even if you actually have a good case. The rules are set out in the Limitation Act and apply to both monetary claims and claims for defects in construction projects.

Basic rule:
Claims expire three years after takeover. See the Limitation Act, Sections 2 and 3.

However, there are important exceptions:

If the defect was hidden, the deadline is extended to one year from the time you discovered – or should have discovered – the defect.
The limitation period can then be postponed for a maximum of 10 years, i.e. the claim must be made no later than 13 years after the takeover. See Section 10 of the Limitation Act.

The limitation period for claims is interrupted by: 

• File a settlement complaint or summons
• Receive explicit acknowledgment of the claim from the opposing party
• Enter into an agreement on deferred maturity

See Sections 14–19 and 28 of the Limitation Act.

NB: Payment claims for work performed normally expire three years after the due date – typically the date on the invoice.

2. Complaints – you must notify us in good time

In order to retain the right to make a claim for defects, you must submit your complaint within certain time limits. This applies regardless of the statute of limitations.

Two types of complaint deadlines:

Relative deadline – "within a reasonable time"

Normally interpreted as two months after the defect was (or should have been) discovered.
In many contracts, such as NS 8405/8415, the deadline is shorter: "without undue delay."

Absolute deadline – typically 5 years after takeover

Applies, among other things, under the Housing Construction Act, the Craftsmen Services Act, and NS contracts.

After the deadline has expired, claims cannot be made – unless there is gross negligence or intent.

There is no absolute complaint deadline for repair work – only the relative deadline applies to such work. The exception here is NS contracts, which extend the absolute complaint deadline of five years by one year when repair work has been carried out. This means that the complaint period is six years from the date of takeover instead of five years. 

3. The pitfall many fall into

A common misconception is to believe that claims can be made until the absolute complaint deadline of five years has expired. This is not correct.

The claim may be lost much earlier – either because it was not reported in time (relative deadline), or because it has expired after 3 years.

4. Rules of thumb you should remember

• Always advertise quickly and in writing.
• Known claims: File a settlement claim or lawsuit no later than 3 years after the due date (e.g., invoice date) or takeover.
• Hidden defects/shortcomings: If the defect is discovered more than two years after takeover, a settlement claim or summons must be filed within one year of the date on which the claim should have been discovered – and no later than 13 years after takeover.

Summary

Both the rules on complaints and the rules on limitation periods must be complied with in order to preserve a claim.
The rules are complicated, and the consequences of making a mistake are serious.
If you are unsure, seek legal assistance at an early stage.

Do you need help assessing deadlines in a construction project?
Get in touch – we have extensive experience in advising on such matters.