House Bill hb1185

    Florida House of Representatives - 2001                HB 1185

        By Representative Mahon






  1                      A bill to be entitled

  2         An act relating to construction contracts;

  3         amending s. 725.06, F.S.; providing that

  4         indemnification in construction contracts is

  5         against public policy and void; providing

  6         exceptions; providing an effective date.

  7

  8  Be It Enacted by the Legislature of the State of Florida:

  9

10         Section 1.  Section 725.06, Florida Statutes, is

11  amended to read:

12         (Substantial rewording of section. See

13         s. 725.06, F.S., for present text.)

14         725.06  Construction contracts; limitation on

15  indemnification.--

16         (1)  Any portion of any agreement or contract for or in

17  connection with, or any guarantee of or in connection with,

18  any construction, alteration, repair, or demolition of a

19  building, structure, appurtenance, or appliance, including

20  moving and excavating associated therewith, between an owner

21  of real property and an architect, engineer, general

22  contractor, subcontractor, sub-subcontractor, or materialman

23  or any combination thereof wherein any party referred to

24  herein obtains indemnification from liability for damages to

25  persons or property caused in whole or in part by any act,

26  omission, or default of that party arising from the contract

27  or its performance shall be void and unenforceable unless:

28         (a)  The contract contains a monetary limitation on the

29  extent of the indemnification and shall be a part of the

30  project specifications or bid documents, if any; or

31

                                  1

CODING: Words stricken are deletions; words underlined are additions.






    Florida House of Representatives - 2001                HB 1185

    781-108A-01






  1         (b)  The person indemnified by the contract gives a

  2  specific consideration to the indemnitor for the

  3  indemnification that shall be provided for in his or her

  4  contract and section of the project specifications or bid

  5  documents, if any.

  6         (2)  Notwithstanding the provisions of subsection (1),

  7  if a construction contractor provides service to or for a

  8  public agency, the agency may require in a construction

  9  contract with the contractor that the contractor indemnify and

10  hold harmless the agency, its officers and employees, and the

11  agency's consultants and design professionals from

12  liabilities, damages, losses, and costs, including, but not

13  limited to, reasonable attorney's fees, to the extent caused

14  by the negligence, recklessness, or intentionally wrongful

15  conduct of the contractor and other persons employed or

16  utilized by the contractor in the performance of the contract.

17         (3)  Except as specifically provided in subsection (2),

18  a construction contract may not require that the contractor

19  defend, indemnify, or hold harmless the agency, its employees,

20  officers, directors, or agents from any liability, damage,

21  loss, claim, action, or proceeding, and any such contract

22  provision shall be void as against the public policy of this

23  state.

24         Section 2.  This act shall take effect upon becoming a

25  law.

26

27            *****************************************

28                          HOUSE SUMMARY

29
      Provides that an indemnification agreement in a
30    construction contract is void as against public policy.
      Provides exceptions. See bill for details.
31

                                  2

CODING: Words stricken are deletions; words underlined are additions.