ORS 12.135: Action for damages from construction, alteration or repair of real property.

(1) As used in this section: (a) “Association of unit owners” has the meaning given that term in ORS 100.005. (b) “Homeowners association” has the meaning given that term in ORS 94.550. (c) “Large commercial structure,” “residential structure” and “small commercial structure” have the meanings given those terms in ORS 701.005. (d) “Public body” has the meaning given that term in ORS 174.109. (e) “Substantial completion” means the earliest of: (A) 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; (B) The date when a public body issues a certificate of occupancy for the improvement; or (C) The date when the owner occupies the improvement or uses it for its intended purpose. (2) 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 or residential structure; or (c) Six years after substantial completion or abandonment of the construction, alteration or repair of a large commercial structure. (3) 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. (4) Notwithstanding subsection (2) of this section, the period of limitation for a tort action by a homeowners association or association of unit owners arising from the defective construction, alteration or repair of a structure or unit is: (a) Seven years after substantial completion or abandonment of the construction, alteration or repair of the structure; or (b) If a construction defect described in this subsection is discovered more than six but less than seven years after substantial completion or abandonment, one year after discovery of the defect. (5)(a) Notwithstanding subsections (2) and (3) of this section, an action against a person registered to practice architecture under ORS 671.010 to 671.220, a person registered to practice landscape architecture under ORS 671.310 to 671.459 or a person registered to practice engineering under ORS 672.002 to 672.325 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 must be commenced before the earliest of: (A) Two years after the date the injury or damage is first discovered or in the exercise of reasonable care should have been discovered; (B) Ten years after substantial completion or abandonment of the construction, alteration or repair of a small commercial structure or residential structure; or (C) Six years after substantial completion or abandonment of the construction, alteration or repair of a large commercial structure. (b) This subsection applies to actions brought by any person or public body. (6) For purposes of this section, an improvement to real property is considered abandoned on the same date that the improvement is considered abandoned under ORS 87.045. (7) This section: (a) Applies to an action against a manufacturer, distributor, seller or lessor of a manufactured dwelling, as defined in ORS 446.003, or of a prefabricated structure, as defined in ORS 455.010; 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; 2013 c.469 §1; 2019 c.327 §1; 2025 c.578 §1]