Due to a recent decision of the North Carolina Court of Appeals, there now exists the potential for some uncertainty as to the time limits to assert claims related to a construction project. Specifically, that potential uncertainty relates to when the six-year statute of repose on construction claims begins to run. As for a statute of repose, you may say 'what the heck is that?' Generally, the statute of repose is a firm and absolute deadline, after which claims related to improvements to real property, including a construction project, will be time-barred. This period runs from the date of 'substantial completion' and is not subject to a date of discovery standard, such as might be the case with the three-year statute of limitations. The specific uncertainty relates to whether there can be different substantial completion dates for the contractor and each of its subcontractors, such that time limits begin to run at different times.
In Gaston County Board of Education v. Shelco, LLC, et al., No. COA21-618, 2022-NCCOA-550, 877 S.E.2d 316 (August 16, 2022), the Court of Appeals addressed the definition of substantial completion in the context of a dispute where the owner sued a contractor, an engineer, an architect, and the architect's subcontractor over a cracked retaining wall. The owner, contractor, and architect had signed a Certificate of Substantial...
