Hot Topic Highlight - Building Safety Act 2022 and Limitation Periods

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What is this blog about?

In this week’s blog, we look at changes to limitation periods under the Defective Premises Act 1972 and Building Act 1984 made by the Building Safety Act (BSA) 2022.

We will look at other changes in future blog articles, as this is just one key area of reform under the BSA 2022.

This is key knowledge for the Legal/Regulatory Compliance technical competency, for RICS APC candidates on a variety of pathways, including Building Surveying, Project Management and Quantity Surveying & Construction.

What are limitation periods?

A brief summary of limitation periods generally is a helpful starting point.

The Limitation Act 1980 was introduced to protect individuals and companies from indefinite exposure to litigation.

If you have ever studied psychology, then Loftus & Palmer’s (1974) work shows how memories can change over time:

The fluid nature of memories and risk of losing documentary evidence can make it hard to produce a fair outcome in litigation, a long time after the fact.

Under the Limitation Act 1980, claims can only be brought 6 years after the date of harm or 12 years (for contracts made under deed).

There is also a 3 year secondary limitation period from the date of discovery (if this was after the initial date of harm).

This made the total limitation period a maximum of 15 years.

What change did the BSA 2022 make to the limitation periods discussed above?

Section 135 of the BSA 2022 amended the Limitation Act 1980, with a new Section 4B.

Firstly, this relates to claims made under Section 1 of the Defective Premises Act 1972, This is where a defect means that a newly constructed or (as another amendment under the BSA 2022) an existing building (e.g., due to defective remedial works, refurbishment or maintenance) is made uninhabitable.

For Section 1 claims, the limitation period has been extended to:

30 years retrospectively, i.e., before the date that the BSA 2022 came into force, on 28 June 2022
15 years for claims arising after 28 June 2022

Secondly, this also relates to claims under Section 38 of the Building Act 1984. This is where a breach of the Building Regulations leads to a claim for damages.

For Section 38 claims, the limitation period is extended to 15 years where a building was completed after 28 June 2022.

Why do you need to know about this as a surveyor?

You need to know about the changes to limitation periods under the BSA 2022 to provide diligent advice to clients and to act competently, such as when you are:

Dealing with contractual provisions, including sub-contracts to align limitation periods
Retaining documents for the appropriate imitation period (at least 15 years and up to 30 years)
Consider pricing in the context of higher risk due to extended liability periods

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