2011 ORS § 12.135¹
Action for damages from construction, alteration or repair of improvement to real property
  • substantial completion defined
  • application

(1) An action against a person by a plaintiff who is not a public body, whether in contract, tort or otherwise, arising from the person having performed the construction, alteration or repair of any improvement to real property or the supervision or inspection thereof, or from the person having furnished design, planning, surveying, architectural or engineering services for the improvement, must be commenced before the earliest of:

(a) The applicable period of limitation otherwise established by law;

(b) Ten years after substantial completion or abandonment of the construction, alteration or repair of a small commercial structure, as defined in ORS 701.005 (Definitions), a residential structure, as defined in ORS 701.005 (Definitions), or a large commercial structure, as defined in ORS 701.005 (Definitions), that is owned or maintained by a homeowners association, as defined in ORS 94.550 (Definitions for ORS 94.550 to 94.783), or that is owned or maintained by an association of unit owners, as defined in ORS 100.005 (Definitions); or

(c) Six years after substantial completion or abandonment of the construction, alteration or repair of a large commercial structure, as defined in ORS 701.005 (Definitions), other than a large commercial structure described in paragraph (b) of this subsection.

(2) An action against a person by a public body, whether in contract, tort or otherwise, arising from the person having performed the construction, alteration or repair of any improvement to real property or the supervision or inspection thereof, or from the person having furnished design, planning, surveying, architectural or engineering services for the improvement, must be commenced not more than 10 years after substantial completion or abandonment of such construction, alteration or repair of the improvement to real property.

(3) Notwithstanding subsections (1) and (2) of this section, an action against a person for the practice of architecture, as defined in ORS 671.010 (Definitions for ORS 671.010 to 671.220), the practice of landscape architecture, as defined in ORS 671.310 (Definitions for ORS 671.310 to 671.459), or the practice of engineering, as defined in ORS 672.005 (Additional definitions), to recover damages for injury to a person, property or to any interest in property, including damages for delay or economic loss, regardless of legal theory, arising out of the construction, alteration or repair of any improvement to real property shall be commenced within two years after the date the injury or damage is first discovered or in the exercise of reasonable care should have been discovered; but in any event the action shall be commenced within 10 years after substantial completion or abandonment of the construction, alteration or repair. This subsection applies to actions brought by any person or public body.

(4) For purposes of this section:

(a) Public body has the meaning given that term in ORS 174.109 (Public body defined); and

(b) Substantial completion means the date when the contractee accepts in writing the construction, alteration or repair of the improvement to real property or any designated portion thereof as having reached that state of completion when it may be used or occupied for its intended purpose or, if there is no such written acceptance, the date of acceptance of the completed construction, alteration or repair of such improvement by the contractee.

(5) For purposes of this section, an improvement to real property shall be considered abandoned on the same date that the improvement is considered abandoned under ORS 87.045 (Completion date of improvement).

(6) This section:

(a) Applies to an action against a manufacturer, distributor, seller or lessor of a manufactured dwelling, as defined in ORS 446.003 (Definitions for ORS 446.003 to 446.200 and 446.225 to 446.285 and ORS chapters 195, 196, 197, 215 and 227), or of a prefabricated structure, as defined in ORS 455.010 (Definitions for ORS chapter 455); and

(b) Does not apply to actions against any person in actual possession and control of the improvement, as owner, tenant or otherwise, at the time such cause of action accrues. [1971 c.664 §§2,3,4; 1983 c.437 §1; 1991 c.968 §1; 2009 c.485 §3; 2009 c.715 §1]

Note: Section 3, chapter 715, Oregon Laws 2009, provides:

Sec. 3. The amendments to ORS 12.135 (Action for damages from construction, alteration or repair of improvement to real property) and 12.280 (Action based on practice of land surveying) by sections 1 and 2 of this 2009 Act apply only to causes of action arising on or after the effective date of this 2009 Act [January 1, 2010]. [2009 c.715 §3]