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Committee advances bill shortening construction-related statutes of limitation
Summary
Senate Bill 143, intended to revise statutes of limitation for contract and construction-related claims and align Montana with neighboring states’ shorter timelines, passed the Senate Local Government Committee by voice vote; sponsors said six years strikes an appropriate balance between developer liability and insurability.
The Senate Local Government Committee voted by voice to pass Senate Bill 143, a measure that revises state statutes of limitation for actions based on contracts and construction-related work on real property.
Committee staff summarized the bill’s scope as revising commencement-of-action rules for contract claims, covenants, obligations founded on instruments, and claims arising from work on improvements to real property or land surveying. Senator Hertz said the bill grew from the housing task force and observed that neighboring Rocky Mountain states typically set similar limitations in the four- to six-year range; he said reducing a 10‑year standard to six years helps control insurance and construction costs.
No roll-call vote was recorded in the transcript; members approved passage by voice vote. Committee members indicated general support in the hearing record and noted the change is intended to reduce long-tail liability risk that raises insurance costs for developers and home builders.
Next steps: SB143 has passed committee and will proceed in the Senate process.
