HOUSE AMENDMENT Bill No. HB 1169 CS
1	CHAMBER ACTION
2	Senate House
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12	Representative Brown offered the following:
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14	Amendment (with title amendment)
15	Between line(s) 46 & 47, insert:
16	Section 1. Section 725.06, Florida Statutes, is amended to
17	read:
18	725.06 Construction contracts; limitation on
19	indemnification; agreements to insure.--
20	(1) Except as otherwise provided in paragraphs (a), (b),
21	and (c),any portion of any agreement or contract for or in
22	connection with, or any guarantee of or in connection with, any
23	construction, alteration, repair, or demolition of a building,
24	structure, appurtenance, or appliance, including moving and
25	excavating associated therewith, between an owner of real
26	property andan architect, engineer, general contractor,
27	subcontractor, sub-subcontractor, or materialman or any
28	combination thereof wherein any party referred to herein
29	promises to have someone named an additional insured under his
30	or her insurance policy or to indemnify, defend,or hold
31	harmless another person orthe other party to the agreement,
32	contract, or guarantee for liability orfor damages to persons
33	or property caused in whole or in part by any act, omission, or
34	default of the person or party being indemnifiedindemnitee
35	arising from the contract or its performance,shall be void and
36	unenforceable as against public policy. However, this provision
37	shall not be construed to place limits on indemnity agreements
38	that are only between a general contractor and the owner of real
39	property as long asunlessthe contract contains a monetary
40	limitation on the extent of the indemnification that bears a
41	reasonable commercial relationship to the contract and is part
42	of the project specifications or bid documents, if any.
43	Notwithstanding the foregoing, the monetary limitation on the
44	extent of the indemnification provided to the owner of real
45	property by any party in privity of contract with such owner
46	shall not be less than $1 million per occurrence, unless
47	otherwise agreed by the parties. However, such indemnification
48	shall not include claims of, or damages resulting from, gross
49	negligence or willful, wanton, or intentional misconduct of the
50	indemnitee or its officers, directors, agents, or employees, or
51	for statutory violation or punitive damages, except and to the
52	extent the statutory violation or punitive damages are caused by
53	or result from the negligent act, omission, or default of the
54	indemnitor or any of the indemnitor’s contractors,
55	subcontractors, sub-subcontractors, materialmen, or agents of
56	any tier or their respective employees.
57	(a)Indemnification provisions in any such agreements,
58	contracts, or guarantees may not require that the indemnitor
59	indemnify the indemnitee for damages to persons or property
60	caused in whole or in part by any act, omission, or default of a
61	party other than:
62	1.(a) The indemnitor; or
63	2.(b)Any of the indemnitor's contractors, subcontractors,
64	sub-subcontractors, materialmen, or agents of any tier or their
65	respective employees; or
66	(c) The indemnitee or its officers, directors, agents, or
67	employees. However, such indemnification shall not include
68	claims of, or damages resulting from, gross negligence, or
69	willful, wanton or intentional misconduct of the indemnitee or
70	its officers, directors, agents or employees, or for statutory
71	violation or punitive damages except and to the extent the
72	statutory violation or punitive damages are caused by or result
73	from the acts or omissions of the indemnitor or any of the
74	indemnitor's contractors, subcontractors, sub-subcontractors,
75	materialmen, or agents of any tier or their respective
76	employees.
77	(b)(2)A construction contract for a public agency or in
78	connection with a public agency's project may require a party to
79	that contract to indemnify and hold harmless the other party to
80	the contract, their officers and employees, from liabilities,
81	damages, losses and costs, including, but not limited to,
82	reasonable attorney's fees, to the extent caused by the
83	negligence, recklessness, or intentional wrongful misconduct of
84	the indemnifying party and persons employed or utilized by the
85	indemnifying party in the performance of the construction
86	contract.
87	(c) Any portion of any agreement or contract for or in
88	connection with, or any guarantee of or in connection with, any
89	construction, alteration, repair, or demolition of a building,
90	structure, appurtenance, or appliance, including moving and
91	excavating associated therewith, between an entity regulated by
92	the Florida Public Service Commission and an architect,
93	engineer, general contractor, subcontractor, sub-subcontractor,
94	or materialman or any combination thereof wherein any party
95	referred to in this section promises to indemnify or hold
96	harmless the other party to the agreement, contract, or
97	guarantee for liability for damages to persons or property
98	caused in whole or in part by any negligent act, omission, or
99	default of the indemnitee arising from the contract or its
100	performance shall be void and unenforceable unless the contract
101	contains a monetary limitation on the extent of the
102	indemnification that bears a reasonable commercial relationship
103	to the contract and is part of the project specifications or bid
104	documents, if any. Notwithstanding the foregoing, the monetary
105	limitation on the extent of the indemnification provided to the
106	owner of real property by any party in privity of contract with
107	such owner shall not be less than $1 million per occurrence,
108	unless otherwise agreed by the parties. Indemnification
109	provisions in any such agreements, contracts, or guarantees may
110	not require that the indemnitor indemnify the indemnitee for
111	damages to persons or property caused in whole or in part by any
112	act, omission, or default of a party other than:
113	1. The indemnitor;
114	2. Any of the indemnitor's contractors, subcontractors,
115	sub-subcontractors, materialmen, or agents of any tier or their
116	respective employees; or
117	3. The indemnitee or its officers, directors, agents, or
118	employees. However, such indemnification shall not include
119	claims of, or damages resulting from, gross negligence, or
120	willful, wanton, or intentional misconduct of the indemnitee or
121	its officers, directors, agents, or employees, or for statutory
122	violation or punitive damages, except and to the extent the
123	statutory violation or punitive damages are caused by or result
124	from the acts or omissions of the indemnitor or any of the
125	indemnitor's contractors, subcontractors, sub-subcontractors,
126	materialmen, or agents of any tier or their respective
127	employees.
128	(2) If, as part of any agreement or contract for or in
129	connection with, or any guarantee of or in connection with, any
130	construction, alteration, repair, or demolition of a building,
131	structure, appurtenance, or appliance, including moving and
132	excavating associated with such activities, between or among an
133	architect, engineer, general contractor, subcontractor, sub-
134	subcontractor, or materialman or any combination of such
135	persons, a policy of insurance extends certain coverage rights
136	to an additional insured for liability arising out of the acts,
137	errors, or omissions of the named insured, such additional
138	insured coverage shall only provide liability protection to the
139	additional insured for the imputed or vicarious liability
140	imposed on the additional insured as a direct consequence of the
141	negligent acts or omissions of the named insured.
142	(3) If a written contract requires a subcontractor, sub-
143	subcontractor, or materialman to provide a policy of insurance
144	or a certificate of insurance to a general contractor or
145	subcontractor extending specific coverage rights to an
146	additional insured:
147	(a) The general contractor or subcontractor may, at any
148	point prior to the date the subcontractor, sub-subcontractor, or
149	materialman commences work or delivers material to the project,
150	accept or reject the policy as being nonconforming.
151	(b) If not rejected, the general contractor or
152	subcontractor shall be deemed to have accepted the policy.
153	(c) The general contractor or subcontractor shall not use
154	the lack of conforming insurance as a reason to reject work
155	already completed by a subcontractor or a sub-subcontractor or
156	material already supplied by the materialman or to withhold
157	payment to the subcontractor, sub-subcontractor, or materialman
158	for work already completed or material already suppliedExcept
159	as specifically provided in subsection (2), a construction
160	contract for a public agency or in connection with a public
161	agency's project may not require one party to indemnify, defend,
162	or hold harmless the other party, its employees, officers,
163	directors, or agents from any liability, damage, loss, claim,
164	action, or proceeding, and any such contract provision is void
165	as against public policy of this state.
166	(4) This section does not affect any contracts,
167	agreements, or guarantees entered into before the effective date
168	of this section or any renewals thereof.
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170	================= T I T L E A M E N D M E N T =================
171	Remove line(s) 11 & 12, and insert:
172	An act relating to construction contracts; amending s. 725.06,
173	F.S.; providing for agreements to insure; revising provisions
174	relating to indemnification; providing for the extension of
175	certain coverage rights to an additional insured and procedures
176	related thereto; deleting a provision relating to renewals of
177	contracts, agreements, or guarantees; amending s. 218.70, F.S.;
178	providing a popular
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