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Arizona Proposed Construction Defect Legislation Defeated

July 1, 2006

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Proposed legislation in Arizona that would have added one more year of exposure to construction defect lawsuits for subcontractors was defeated in committee. The current law is eight years, plus one year if the defect is discovered in the eighth year. The proposed bill (SB1374) would have made it eight years plus one year if the defect was discovered in the eighth year, plus an additional year for the homebuilder or general contractor to file suit against subcontractors.

Opposing the bill were the Construction Trades Coalition (CTC), which represents plumbing, electrical and air-conditioning contractors in the state, the Arizona Builders Alliance and the American Council of Engineering Companies of Arizona. CTC believes that eight years is more than long enough for suits to be filed, and that it is unreasonable that only subcontractors would be subject to the additional year.

Supporters of the bill mistakenly informed state lawmakers that the entire industry was behind the bill, according to CTC. When legislators were informed that CTC was not invited to meetings where the proposed legislation was discussed, they changed their positions and defeated the bill.



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