Bethany Beach, DE asked in Construction Law for Maryland

Q: From what date does stat/lims run on final bill on home construction issued 2+ yrs after Subst’l Completion or any work

It is a MD project using AIA Document A105. Would the SOL apply to bar collection if a final invoice is not issued until 3+ yrs after CO issued and last work on the project?

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1 Lawyer Answer
Mark Oakley
Mark Oakley
  • Construction Law Lawyer
  • Rockville, MD
  • Licensed in Maryland

A: Typically, the SOL will run from the date of last performance of work or delivery of materials to the project, but contractual language may vary the due date of payment (like language that states payment is due 30 days after invoice, so the SOL starts there upon breach of the obligation to pay 30 days after invoice). Moreover, some contracts are signed on a signature line that bears the word, "seal", on ir near it. That word has a significant legal meaning, and its effect is to extend the statute of limtations to 12 years for contracts in Maryland, and so the general 3 year limitations that applies to contracts does not apply. Finally, a construction contract may not be deemed complete until final inspection approval and use and occupancy permits are issued, and the date of the latest of those two events may act as the starting point for the running of the SOL in many cases. If the project was never completed and abandoned, however, then the time would run from date of last labor or materials provided to the site. "2+ years" suggests less than 3 years, so under Maryland law, the SOL would not have expired in any case under your facts. You list DE as your location, but state MD as the law you want applied. You need to clarify whether this is a MD or DE contract/project, as if it is in DE, the DE statute of limitations would apply. You will need to repost this for a DE lawyer to answer in that event.

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