44TH LEGISLATURE - STATE OF NEW MEXICO - FIRST SESSION, 1999

RELATING TO CONSTRUCTION PROJECTS; REVISING THE TIME PERIOD FOR A LIMITATION ON ACTIONS FOR DEFECTIVE OR UNSAFE CONDITIONS; AMENDING A SECTION OF THE NMSA 1978.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

Section 1. Section 37-1-27 NMSA 1978 (being Laws 1967, Chapter 193, Section 1) is amended to read:

"37-1-27. CONSTRUCTION PROJECTS--LIMITATION ON ACTIONS FOR DEFECTIVE OR UNSAFE CONDITIONS.--

A. No action to recover damages for any injury to property, real or personal, or for injury to the person or for bodily injury or wrongful death arising out of the defective or unsafe condition of a physical improvement to real property [nor any] and no action for contribution or indemnity for damages so sustained against any person performing or furnishing the construction or the design, planning, supervision, inspection or administration of construction of [such] the improvement to real property and on account of such activity shall be brought after [ten] six years from the date of substantial completion of [such] the improvement. [Provided, this limitation] If the cause of action arises within the six-year limitation imposed pursuant to this section, the limitation shall not extinguish the cause of action until one year after the date after the cause of action arose. The six-year limitation imposed pursuant to this section shall not apply to any action based on a contract, warranty or guarantee which contains express written terms inconsistent [herewith] with the provisions of this section. B. As used in this section, the "date of substantial completion" [shall mean] means the date when [construction is sufficiently completed so that the owner can occupy or use the improvement for the purpose for which it was intended or the date on which the owner does so occupy or use the improvement or the date established by the contractor as the date of substantial completion, whichever date occurs last.] any of the following first occurs:

(1) the owner or occupant uses the improvement;

(2) the improvement is available for use by the owner or occupant;

(3) there is a final inspection of the improvement by the governmental entity that issued the permit for the improvement; or

(4) one year has passed after cessation of work on the improvement."

Section 2. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 1999.