Construction contract limitation periods: A guide for schools

When entering into construction contracts, schools and academy trusts have two main options for execution: "under hand" agreements or "deeds". 

When schools and academy trusts enter into construction contracts, they have two primary execution options: contracts signed "under hand" (standard agreements) or contracts executed as "deeds". 

In this article, we outline how understanding this choice is crucial for protecting your educational institution's legal interests.

What additional formalities are required for deeds?

Most contracts are signed under hand using standard procedures. However, deeds require additional formalities - they must clearly state they are deeds, be sealed or signed by authorised persons (potentially with witnesses), and be delivered to take effect. 

While this may seem like a minor administrative difference, the choice between under hand and deed execution significantly impacts your legal protection, particularly regarding limitation periods.

While contract execution methods may appear to be a minor administrative detail, choosing between under hand agreements and deeds significantly impacts your school's legal protection through different limitation periods for construction defect claims.

Pursuing contractual claims for remediation

For school construction projects, if defects appear after the contract's defect rectification period has ended, you may need to pursue a contractual claim for remediation. This is where limitation periods become crucial. 

School construction projects often reveal defects after the initial defect rectification period expires, requiring contractual claims for remediation. Limitation periods become critical in these situations. A limitation period establishes the legal deadline for filing construction defect claims - missing this deadline eliminates your right to claim compensation, regardless of case strength. 

Crucially, limitation periods typically commence from practical completion of construction work, meaning time limits begin before defects become visible.

How contract execution affects limitation periods for schools

Contract execution methods directly determine your legal protection timeframe. Under hand contracts typically provide six-year limitation periods from practical completion, while deed execution extends protection to 12 years.

For schools and academy trusts, we strongly recommend executing all significant construction contracts as deeds, ensuring proper completion of additional formalities. 

This extended protection proves particularly valuable for educational facilities experiencing constant use by students and staff, where building defects may only emerge after several years.

Real-world examples: School roof replacement project

Practical example

A roof replacement contract was signed under hand and completed on 1 July 2019. If a hidden defect emerges in September 2026, the six-year limitation period has expired, leaving you unable to pursue a contractual claim. However, if the same contract had been executed as a deed, you would have protection until July 2031. 

This principle also applies to other key project documents, such as consultant appointments and collateral warranties, though you should note that limitation periods for consultants may start from when their specific services conclude.

School construction scenario

A roof replacement contract was signed under hand and completed on 1 July 2019. If hidden defects emerge in September 2026, the six-year limitation period has expired, preventing contractual claims. 

However, executing the same contract as a deed would provide protection until July 2031. This principle applies to all key project documents, including consultant appointments and collateral warranties. Note that limitation periods for professional consultants may commence when their specific services conclude rather than at practical completion.

Recommendations for schools and trusts

We recommend implementing these protective measures for your educational institution:

• Create a limitation period register for all significant current and recent construction projects, documenting whether contracts were executed under hand or as deeds.
• Record each project's practical completion date, as this typically triggers limitation period commencement. 

This documentation enables calculation and monitoring of critical limitation deadlines. For future construction projects, establish deeds as your standard requirement for all significant building work - this straightforward step provides extended legal protection when your school needs it most.

Expert legal support for school construction matters

Do get in touch if you need any further guidance on limitation periods, construction contract execution, or any other construction-related matters affecting your school estate.