The Difference Between Statute of Limitations and Statute of Repose in Texas Construction Law

When it comes to construction defect disputes in Texas, deadlines are everything. Homeowners, developers, and contractors often misunderstand the strict timelines that control when a lawsuit can be filed. Two critical legal concepts—statute of limitations and statute of repose—determine whether a construction defect claim can move forward in court. While both set time limits, they operate in very different ways under Texas construction law.

This guide breaks down the differences, how each applies to construction disputes, and why missing a deadline can mean losing the right to recover damages entirely.

What Is the Statute of Limitations in Texas Construction Law?

The statute of limitations is a legal deadline that limits how long a person has to bring a lawsuit after discovering (or reasonably should have discovered) a problem. In Texas, most construction defect claims fall under a two-year statute of limitations.

This means that once a defect is discovered, the property owner generally has two years to file a claim. However, the “discovery rule” can extend the deadline in cases where the defect was hidden and not reasonably discoverable earlier.

Example: If a homeowner notices water intrusion due to poor window installation in 2023, they usually have until 2025 to file a claim against the builder or contractor responsible.

Key points about the statute of limitations in Texas construction law:

• Starts running from the time of discovery of the defect (or when it should have been discovered through reasonable diligence).

• Covers claims such as negligence, breach of contract, or breach of warranty.

• Missing the deadline usually results in dismissal of the case, regardless of the defect’s seriousness.

What Is the Statute of Repose in Texas Construction Law?

The statute of repose is stricter and less flexible than the statute of limitations. It places an absolute deadline on when claims related to construction defects can be filed—regardless of when the problem was discovered.

In Texas, the statute of repose for construction defect claims is 10 years from the date of substantial completion of the project. In some cases, this period can be extended by two years if a claim is made during the 10th year, but the defect is discovered near the end of that period.

Example: A commercial building completed in 2012 is subject to the statute of repose until 2022. Even if a defect is discovered in 2023 that could not have been found earlier, the property owner cannot bring a lawsuit because the repose period has expired.

Key points about the statute of repose in Texas construction law:

• Runs from the date of substantial completion, not from discovery of the defect.

• Acts as a hard deadline that cannot be tolled (paused) by the discovery rule in most cases.

• Provides finality and certainty for builders, architects, and contractors after a set period of time.

Statute of Limitations vs. Statute of Repose: The Core Differences

Although both laws set deadlines, the statute of limitations and the statute of repose differ in important ways:

Factor Statute of Limitations Statute of Repose

Triggering Event Discovery of the defect (or when it should have been discovered) Substantial completion of the project

Time Period Generally 2 years for construction defects 10 years in Texas (with possible 2-year extension if discovered late)

Flexibility Can be extended by the discovery rule Strict cutoff; no extensions except limited statutory exceptions

Purpose Protects claimants by giving them time after discovery to act Protects contractors, architects, and builders from indefinite liability

Effect of Missing Deadline Claim is barred, but sometimes exceptions apply Absolute bar to claims after the deadline

How These Deadlines Work Together

In many construction defect disputes, both statutes come into play. For example:

• A homeowner discovers a structural foundation issue five years after completion. They may still file a claim because it is within the 10-year statute of repose, and the two-year statute of limitations clock only started when the defect was discovered.

• If the same defect is discovered 12 years after completion, the claim is barred by the statute of repose—even though the homeowner acted quickly after discovery.

In short, the statute of repose acts as the outer boundary, while the statute of limitations controls the time to file once the defect is discovered.

Why These Rules Exist in Texas Construction Law

Texas lawmakers designed these statutes to balance competing interests:

• For property owners: The statute of limitations ensures they have a fair chance to pursue claims once they discover defects. Without this, builders could avoid accountability for hidden construction issues.

• For builders and contractors: The statute of repose prevents them from facing indefinite liability decades after a project is completed, when evidence is harder to find and businesses may have changed hands.

This balance encourages fairness and promotes confidence in the construction industry while protecting homeowners from concealed or long-latent defects—up to a point.

Exceptions and Special Considerations

While the general rules are clear, certain circumstances may affect how limitations and repose apply:

Fraud or Concealment

If a contractor knowingly hides a defect, courts may allow exceptions to the statute of limitations. However, this rarely extends the statute of repose.

Residential Construction Liability Act (RCLA)

Texas law requires homeowners to follow notice and opportunity-to-repair procedures under the RCLA before filing suit. These pre-suit requirements can affect how much time remains on the limitations clock.

Contractual Agreements

Some contracts include specific warranty periods or contractual limitations. These cannot override the statute of repose but may shorten the time for filing claims.

Consequences of Missing the Deadline

The consequences of missing either the statute of limitations or the statute of repose are severe. Courts strictly enforce these deadlines, and missing one usually results in:

• Dismissal of the claim with prejudice (cannot be refiled).

• Loss of the right to recover damages, even if the defect is serious and costly.

• Potential liability for repair costs falling entirely on the property owner.

This is why consulting with an experienced Texas construction lawyer as soon as a defect is suspected is critical. An attorney can calculate the deadlines, send proper notices, and preserve the right to pursue compensation.

Practical Advice for Property Owners

• Act quickly once you notice a defect. Don’t wait until damage worsens.

• Document everything—take photos, keep invoices, and save inspection reports.

• Seek a legal review early to determine whether the statute of limitations or statute of repose may affect your rights.

• Don’t rely on contractor promises to fix problems informally if time is running short. Deadlines do not pause for ongoing repair negotiations.

Conclusion

The difference between the statute of limitations and the statute of repose in Texas construction law can make or break a construction defect claim.

• The statute of limitations provides a short-term window after discovery of a problem.

• The statute of repose creates a hard cutoff tied to project completion, regardless of when the defect appears.

Together, these deadlines highlight why timing is critical in construction disputes. Missing one can mean losing the right to recover damages forever. If you suspect a construction defect in your Texas property, consult a knowledgeable Texas construction lawyer immediately to protect your rights before time runs out.