Arizona's eight-year limit on construction contract claims, explained
Arizona sets an eight-year outer limit on contract-based claims against builders, designers and developers, counted from substantial completion, with a narrow one-year extension for defects found late. Here is how s. 12-552 works.
Arizona's main time limit on construction claims is a statute of repose in A.R.S. s. 12-552. A statute of repose sets a fixed outer deadline counted from a set event, regardless of when anyone found a problem.
The core rule: a contract-based action or arbitration cannot be brought against a developer, contractor, builder, designer or similar party more than eight years after substantial completion of the improvement to real property.
Substantial completion is defined in the statute as the earliest of three events: the owner or occupant first uses the improvement, the improvement is first available for use after completion under the contract, or the final required inspection by the government body that issued the permit takes place.
Late-discovered problems: if an injury happens in the eighth year, or a latent defect is not discovered until the eighth year, the claim may be brought within one year after the injury or discovery. Even then, an action cannot be brought more than nine years after substantial completion.
The statute also reaches implied warranties, such as habitability, fitness and workmanship. It does not shorten an express written warranty period, and it excludes personal injury and death claims. Claims that depend on a city or county code, ordinance or permit run eight years from the date the city or county accepted the improvement, with an exception for willful, reckless or concealed violations. The section also says it does not extend any other limitation period, and where a shorter period applies, the shorter one governs.
This explains the law in general terms and is not legal advice. Other Arizona statutes may add their own deadlines for particular claims.