How Contractors Can Both Use and Protect Themselves from Contractual Time Limits for Bringing Suit
Contractors often include time limits to bring claims in their contracts to prevent themselves from being dragged into litigation over projects that were completed years earlier. However, if the contract time limit is shorter than the state’s limitations for bringing the same claims, that clause may not be enforceable. States set time limits, called statutes of limitations, for bringing different kinds of claims. Statutes of limitations, however, can often be shortened by contract. If you have a time limit for claims in your contract, you need to know whether your state will enforce your time limit or the state statute of limitations. Many states, including Texas, Missouri, and Indiana, have enforced contract time limits of 1-2 years to bring claims, even when the state statute of limitations is longer. However, a recent Washington case is a cautionary tale for contractors on how these clauses may be interpreted.
