12-552

12-552. Actions involving development of real
property design, engineering and construction of
improvements

A. Notwithstanding any other statute, no action or arbitration based in contract
may be instituted or maintained against a person who develops or develops and sells real
property, or performs or furnishes the design, specifications, surveying, planning,
supervision, testing, construction or observation of construction of an improvement to
real property more than eight years after substantial completion of the improvement to
real property.

B. Notwithstanding subsection A of this section, in the case of injury to real
property or an improvement to real property, if the injury occurred during the eighth
year after the substantial completion, or, in the case of a latent defect, was not
discovered until the eighth year after substantial completion, an action to recover
damages for injury to the real property may be brought within one year after the date on
which the injury to real property or an improvement to real property occurred or a latent
defect was discovered, but in no event may an action be brought more than nine years
after the substantial completion of the improvement.

C. The limitations in subsections A and B of this section include any action based
on implied warranty arising out of the contract or the construction, including implied
warranties of habitability, fitness or workmanship.

D. Nothing in this section applies to actions for personal injury or death nor
shall this section operate to shorten the period of warranty provided in an express
written warranty.

E. For the purposes of subsections A, B and C of this section, an improvement to
real property is considered substantially complete when any of the following first
occurs:

1. It is first used by the owner or occupant of the improvement.

2. It is first available for use after having been completed according to the
contract or agreement covering the improvement, including agreed changes to the contract
or agreement.

3. Final inspection, if required, by the governmental body which issued the
building permit for the improvement.

F. In this section an action based in contract is an action based on a written real
estate contract, sales agreement, construction agreement, conveyance or written agreement
for construction or for the services set forth in subsection A of this section. This
section shall not be construed to extend the period prescribed by the laws of this state
for bringing any action. If a shorter period of limitation is prescribed for a specific
action, the shorter period governs.

G. With respect to an improvement to real property that was substantially complete
on or before September 15, 1989, the eight and nine-year periods established in
subsections A and B of this section shall begin to run on September 15,
1989. Notwithstanding the provisions of subsection E of this section and section 12-505,
subsection A, this subsection applies to claims that accrued before the effective date of
this amendment to this section.