Senate committee hears sharp debate over narrowing construction‑defect exception to 8‑year statute of repose

At a Senate Judiciary Committee hearing, witnesses and committee members debated a bill that would narrow the circumstances in which a violation of a building code can be used to overcome South Carolina’s eight‑year statute of repose for construction‑defect claims.

The bill would limit the current exception so code violations would be admissible to show fraud, gross negligence or recklessness only if the violation “resulted in physical harm to a person, or significant damage to the performance of a building,” witnesses said. No formal vote was taken; the committee set a schedule for amendments and adjourned.

Why it matters: Builders and subcontractors say an absolute rule is needed so small, technical deviations from code do not produce open‑ended liability years later. Homeowners, property managers and condominium association advocates say the proposed language would prevent recovery for latent structural and water‑intrusion defects that often appear after eight years, shifting repair costs onto owners and triggering assessments that can harm lending and resale.

Construction attorney Brian Barnes, of Rogers Townsend, urged the committee to adopt the narrower test. “A workable statute of repose is vitally important to businesses who build things,” Barnes said. He described the proposed language as a…