Contractual Limitation Periods – Making sure the time is right

Construction contracts commonly include clauses which aim to extend, shorten or preserve the statutory limitation period. Case law in respect of such clauses demonstrates that their effect is less than clear-cut. This underlines the need to carefully consider the applicable limitation period when negotiating and drafting a contract, in order that the position is clear should a dispute arise. A failure to do so could prevent a party from recovering losses suffered under the contract.