Committee clarifies construction-defect filing window; extends certain third-party claims to five years

Feb 24, 2026

SB 866 clarifies when counterclaims or third-party complaints may be brought in construction‑defect cases and extends the relevant deadline from four to five years after substantial completion for certain actions; the committee adopted an amendment and advanced the bill.

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Senator Stevens presented SB 866 to clarify rules about third‑party counterclaims and to extend time limits for bringing certain counterclaims or third‑party complaints in construction‑defect litigation. The amendment clarified that a third‑party counterclaim authorized by the section must be brought within five years after substantial completion of the improvement, including in actions, arbitration or other binding dispute resolution.

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