April 7, 2017
Volume XVI, Edition 13
Governor Signs Reduction of Statute of Repose and PLA Prohibition
Two of MBI’s top policy priorities came to fruition on Thursday with Governor Branstad signing into law SF 413 and SF 438.
As you may recall, SF 413 reduces Iowa’s statute of repose from 15 years to 8 years on commercial construction and 10 years on residential, and SF 438 is a prohibition of government-mandated Project Labor Agreements (PLAs).
MBI has been working to reduce the statute of repose on improvements to real property for the last seven years. We’ve had some success in each of those years, but invariably our efforts would stall due to the pressure that the Trial Lawyers and the Iowa State Bar Association would apply in the Iowa Senate. However, with a new Republican majority in the Senate and a Republican House and Governor, our chances were greatly improved this year as we found that the House and Senate leadership was much more sympathetic to the plight of the constructor.
With the passage of SF 413 and the Governor’s signature, all contracts entered into on or after July 1, 2017, will have the newly reformed repose parameters. It is important to note, contracts entered into prior to July 1, 2017, will in all likelihood remain under the 15 year repose period.
The following is a rundown of the bill: