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Finding a construction defect does not necessarily mean an owner can recover the repair costs—even when the problem was hidden for decades. In its April 30, 2026 decision in Clearfield County v. TranSystems Corporation, the Pennsylvania Supreme Court confirmed that governmental entities cannot use their special protection from certain filing deadlines to avoid Pennsylvania’s 12-year construction statute of repose.

For contractors, architects, and engineers, the ruling reinforces an important limit on liability for old projects. For owners and developers, it is a reminder that the deadline generally runs from completion of construction—not discovery of the defect.

The Background

Around 1977, Clearfield County entered into agreements for the design and construction of a new jail, involving an architectural and engineering firm, a general contractor, and a masonry subcontractor. Construction was completed in 1981, and the jail opened that year.

During renovations in 2021, a contractor discovered what the County alleged was a major construction defect: the original roof had never been properly connected to the building’s masonry walls.

The County paid approximately $3.88 million to install a bond beam connecting the roof to the walls. In 2023, it sued the original architect’s successor, general contractor, and masonry subcontractor for negligence, fraudulent misrepresentation and breach of contract.

The defendants argued that the lawsuit came too late under Pennsylvania’s statute of repose, 42 Pa.C.S. § 5536, which generally bars covered claims filed more than 12 years after completion of construction.

The County argued that its status as a governmental entity protecting public property and taxpayer funds allowed it to avoid that deadline.

Why the Court Rejected the County’s Argument

The Supreme Court rejected the County’s argument and upheld dismissal of the lawsuit.

The County relied on a doctrine called nullum tempus, which can allow governmental entities to avoid certain lawsuit deadlines. But the Court explained that a statute of repose works differently from an ordinary statute of limitations.

A statute of limitations generally sets the time to sue after a claim arises. A statute of repose cuts off covered claims after a set period measured from an event such as completion of construction.

Pennsylvania’s statute of repose generally sets that cutoff at 12 years for covered claims against architects, engineers, contractors, and other qualifying construction professionals.

The Court emphasized that the legislature intended to give construction professionals an endpoint to potential liability. Allowing governmental entities to bypass that cutoff under nullum tempus would defeat that purpose.

What This Means for the Construction Industry

A hidden defect does not restart the clock. The 12-year period generally runs from completion of construction. An owner who discovers a defect 15 or 20 years later may have no claim against the original construction professionals.

Public ownership does not remove the cutoff. Counties, municipalities, school districts, and other governmental entities cannot use nullum tempus to avoid the construction statute of repose.

Completion records matter. Occupancy permits and records showing when a building opened or became ready for its intended use may help establish when the 12-year period began.

For contractors, architects, and engineers, the ruling reinforces the statute’s protection against claims involving long-completed projects—and the value of keeping records that establish when the work was finished.

Contact attorney Matthew Lautman for a review of your situation. This was written and edited by Pittsburgh attorney Matthew J. Lautman, and authored with research and organizational assistance by Thomson Reuters CoCounsel.