For the drawings everyone builds from.

California's 4- and 10-year outer limits

California sets outer deadlines on defect suits against those who design, survey, plan, supervise, observe or build improvements to real property. Under Code of Civil Procedure 337.1, a suit over a patent deficiency (one apparent by reasonable inspection), including property damage, personal injury or wrongful death arising from it, generally cannot be brought more than four years after substantial completion. If the injury happens in the fourth year, a tort suit may follow within one year of the injury, but never more than five years after substantial completion. Those limits do not apply to an owner-occupied single-unit residence.

For a latent deficiency, one not apparent by reasonable inspection, Code of Civil Procedure 337.15 sets the limit at ten years after substantial completion for the deficiency itself and for property damage arising from it. It counts indemnity claims as actions, though a cross-complaint for indemnity may still be filed in a suit brought within the ten years. The ten years start no later than the earliest of final inspection by the public agency, recording of a valid notice of completion, use or occupation of the improvement, or one year after the work ends. Section 337.15 does not apply to actions based on willful misconduct or fraudulent concealment.

What I do with this on a claims-made policy:

• Ask to keep the original retroactive date when changing carriers; a later retroactive date can leave earlier projects outside a claims-made policy.
• Before retiring, selling or closing a firm, count forward from the substantial completion of the last projects and decide how long an extended reporting period should run.
• Record substantial completion, notice of completion and final inspection dates in each project file. Those dates start the clock.

Repose periods vary by state. Texas, for example, gives 10 years after substantial completion for suits against architects, engineers, interior designers and landscape architects, and eight years for most suits by a governmental entity.

The written contract the law requires

California law requires architects and engineers to use a written contract signed by the design professional and the client before work starts, unless the client states in writing that work may begin first. For architects, Business and Professions Code 5536.22 requires:

• A description of the project and of the architect's services
• The basis of compensation and the method of payment
• The architect's name, address and license number, the client's name and address, and the project address
• Procedures for additional services and contract changes, and for termination by either party
• A statement of who owns and may use the instruments of service
• A statement, in at least 12-point type, that architects are licensed and regulated by the California Architects Board, with the board's address

For engineers, Business and Professions Code 6749 requires a description of services, compensation and payment method, the engineer's name, address and license or certificate number and the client's name and address, procedures for additional services and termination, and disclosure of any current professional liability insurance policy covering the engineer in responsible charge. Under 6749, an electronic contract counts as written.

Both sections list exceptions, such as unpaid work, certain repeat clients, a client's written waiver after full disclosure, and work for public agencies (for architects, when the agency's own written contract is used). Architectural work for engineers or land surveyors is exempt, as is engineering work for other engineers, land surveyors, architects, contractors, geologists and geophysicists.

Underwriters ask whether a firm uses written contracts on every job. For engineers, the insurance disclosure in the contract should match the policy actually in force.

Official sources

• Cal. Code of Civil Procedure 337.1 (patent deficiencies, 4 years)
• Cal. Code of Civil Procedure 337.15 (latent deficiencies, 10 years)
• Cal. Civil Code 2782.8 (design professional indemnity limits)
• Cal. Business and Professions Code 5536.22 (architect written contracts)
• Cal. Business and Professions Code 6749 (engineer written contracts)
• Cal. Business and Professions Code 5588 (architect reporting)
• Cal. Business and Professions Code 5588.1 (insurer reporting, architects)
• Cal. Business and Professions Code 6770 (engineer reporting)
• Cal. Code of Civil Procedure 411.35 (certificate of merit)
• Tex. Civil Practice and Remedies Code 16.008 (architects and engineers, 10 years)