SENATE AMENDMENT
    Bill No. CS for CS for SB 1724, 1st Eng.
    Amendment No. ___   Barcode 251488
                            CHAMBER ACTION
              Senate                               House
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       04/30/2003 03:37 PM         .                    
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11  Senator Bennett moved the following amendment:
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13         Senate Amendment (with title amendment) 
14         On page 2, line 12,
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16  insert:  
17         Section 1.  Section 725.06, Florida Statutes, is
18  amended to read:
19         725.06  Construction contracts; limitation on
20  indemnification; agreements to insure.--
21         (1)  Except as otherwise provided in paragraphs (a),
22  (b), and (c), any portion of any agreement or contract for or
23  in connection with, or any guarantee of or in connection with,
24  any construction, alteration, repair, or demolition of a
25  building, structure, appurtenance, or appliance, including
26  moving and excavating associated therewith, between an owner
27  of real property and an architect, engineer, general
28  contractor, subcontractor, sub-subcontractor, or materialman
29  or any combination thereof wherein any party referred to
30  herein promises to have someone named an additional insured
31  under the party's insurance policy or to indemnify, defend, or
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    11:55 AM   04/30/03                             s1724c2c-21k0t

SENATE AMENDMENT Bill No. CS for CS for SB 1724, 1st Eng. Amendment No. ___ Barcode 251488 1 hold harmless another person or party the other party to the 2 agreement, contract, or guarantee for liability or for damages 3 to persons or property caused in whole or in part by any act, 4 omission, or default of the person or party being indemnified 5 indemnitee arising from the contract or its performance, shall 6 be void and unenforceable as against public policy. However, 7 this provisions shall not be construed to place limits on 8 indemnity agreements that exist only between a general 9 contractor and the owner of real property as long as unless 10 the contract contains a monetary limitation on the extent of 11 the indemnification that bears a reasonable commercial 12 relationship to the contract and is part of the project 13 specifications or bid documents, if any. Notwithstanding the 14 foregoing, the monetary limitation on the extent of the 15 indemnification provided to the owner of real property by any 16 party in privity of contract with such owner shall not be less 17 than $1 million per occurrence, unless otherwise agreed by the 18 parties. However, such indemnification shall not include 19 claims of, or damages resulting from, gross negligence or 20 willful, wanton, or intentional misconduct of the indemnitee 21 or its officers, directors, agents, or employees, or for 22 statutory violations or punitive damages except if, and to the 23 extent that the statutory violation or punitive damages are 24 caused by or result from the negligent acts, omissions, or 25 default of the indemnitor or any of the indemnitor's 26 contractors, subcontractors, sub-subcontractors, materialmen, 27 or agents of any tier or their respective employees. 28 (a) Indemnification provisions in any such agreements, 29 contracts, or guarantees may not require that the indemnitor 30 indemnify the indemnitee for damages to persons or property 31 caused in whole or in part by any act, omission, or default of 2 11:55 AM 04/30/03 s1724c2c-21k0t
SENATE AMENDMENT Bill No. CS for CS for SB 1724, 1st Eng. Amendment No. ___ Barcode 251488 1 a party other than: 2 1.(a) The indemnitor; or 3 2.(b) Any of the indemnitor's contractors, 4 subcontractors, sub-subcontractors, materialmen, or agents of 5 any tier or their respective employees.; or 6 (c) The indemnitee or its officers, directors, agents, 7 or employees. However, such indemnification shall not include 8 claims of, or damages resulting from, gross negligence, or 9 willful, wanton or intentional misconduct of the indemnitee or 10 its officers, directors, agents or employees, or for statutory 11 violation or punitive damages except and to the extent the 12 statutory violation or punitive damages are caused by or 13 result from the acts or omissions of the indemnitor or any of 14 the indemnitor's contractors, subcontractors, 15 sub-subcontractors, materialmen, or agents of any tier or 16 their respective employees. 17 (b)(2) A construction contract for a public agency or 18 in connection with a public agency's project may require a 19 party to that contract to indemnify and hold harmless the 20 other party to the contract, their officers and employees, 21 from liabilities, damages, losses and costs, including, but 22 not limited to, reasonable attorney's fees, to the extent 23 caused by the negligence, recklessness, or intentional 24 wrongful misconduct of the indemnifying party and persons 25 employed or utilized by the indemnifying party in the 26 performance of the construction contract. 27 (c) Any portion of any agreement or contract for or in 28 connection with, or any guarantee of or in connection with, 29 any construction, alteration, repair, or demolition of a 30 building, structure, appurtenance, or appliance, including 31 moving and excavating associated therewith, between an entity 3 11:55 AM 04/30/03 s1724c2c-21k0t
SENATE AMENDMENT Bill No. CS for CS for SB 1724, 1st Eng. Amendment No. ___ Barcode 251488 1 regulated by the Florida Public Service Commission and an 2 architect, engineer, general contractor, subcontractor, 3 sub-subcontractor, or materialman or any combination thereof 4 wherein any party referred to herein promises to indemnify or 5 hold harmless the other party to the agreement, contract, or 6 guarantee for liability for damages to persons or property 7 caused in whole or in part by any negligent act, omission, or 8 default of the indemnitee arising from the contract or its 9 performance shall be void and unenforceable unless the 10 contract contains a monetary limitation on the extent of the 11 indemnification which bears a reasonable commercial 12 relationship to the contract and is part of the project 13 specifications or bid documents, if any. Notwithstanding the 14 foregoing, the monetary limitation on the extent of the 15 indemnification provided to the owner of real property by any 16 party in privity of contract with such owner shall not be less 17 than $1 million per occurrence, unless otherwise agreed by the 18 parties. Indemnification provisions in any such agreements, 19 contracts, or guarantees may not require that the indemnitor 20 indemnify the indemnitee for damages to persons or property 21 caused in whole or in part by any act, omission, or default of 22 a party other than: 23 1. The indemnitor; 24 2. Any of the indemnitor's contractors, 25 subcontractors, sub-subcontractors, materialmen, or agents of 26 any tier or their respective employees; or 27 3. The indemnitee or its officers, directors, agents, 28 or employees. However, such indemnification shall not include 29 claims of, or damages resulting from, gross negligence or 30 willful, wanton, or intentional misconduct of the indemnitee 31 or its officers, directors, agents, or employees, or for 4 11:55 AM 04/30/03 s1724c2c-21k0t
SENATE AMENDMENT Bill No. CS for CS for SB 1724, 1st Eng. Amendment No. ___ Barcode 251488 1 statutory violation or punitive damages except if, and to the 2 extent that, the statutory violation or punitive damages are 3 caused by or result from the acts or omissions of the 4 indemnitor or any of the indemnitor's contractors, 5 subcontractors, sub-subcontractors, materialmen, or agents of 6 any tier or their respective employees. 7 (2) If, as part of any agreement or contract for or in 8 connection with, or any guarantee of or in connection with, 9 any construction, alteration, repair, or demolition of a 10 building, structure, appurtenance, or appliance, including 11 moving and excavating associated with such activities, between 12 or among an architect, engineer, general contractor, 13 subcontractor, sub-subcontractor, or materialman or any 14 combination of such persons, a policy of insurance extends 15 certain coverage rights to an additional insured for liability 16 arising out of the acts, errors, or omissions of the named 17 insured, such additional insured coverage shall provide 18 liability protection only to the additional insured for the 19 imputed or vicarious liability imposed on the additional 20 insured as a direct consequence of the negligent acts or 21 omissions of the named insured. 22 (3) If a written contract requires a subcontractor, 23 sub-subcontractor, or materialman to provide a policy of 24 insurance or a certificate of insurance to a general 25 contractor or subcontractor, extending specific coverage 26 rights to an additional insured: 27 (a) The general contractor or subcontractor may at any 28 point prior to the date the subcontractor, sub-subcontractor, 29 or materialman commences work or delivers material to the 30 project accept or reject the policy as being nonconforming; 31 (b) If the policy is not rejected, the general 5 11:55 AM 04/30/03 s1724c2c-21k0t
SENATE AMENDMENT Bill No. CS for CS for SB 1724, 1st Eng. Amendment No. ___ Barcode 251488 1 contractor or subcontractor shall be deemed to have accepted 2 the policy; and 3 (c) The general contractor or subcontractor may not 4 use the lack of conforming insurance as a reason to reject 5 work already completed by a subcontractor or 6 sub-subcontractor, or material already supplied by the 7 materialman, or withhold payment to the subcontractor, 8 sub-subcontractor, or materialman for work already completed 9 or material already supplied Except as specifically provided 10 in subsection (2), a construction contract for a public agency 11 or in connection with a public agency's project may not 12 require one party to indemnify, defend, or hold harmless the 13 other party, its employees, officers, directors, or agents 14 from any liability, damage, loss, claim, action, or 15 proceeding, and any such contract provision is void as against 16 public policy of this state. 17 (4) This section does not affect any contracts, 18 agreements, or guarantees entered into before the effective 19 date of this section or any renewals thereof. 20 21 (Redesignate subsequent sections.) 22 23 24 ================ T I T L E A M E N D M E N T =============== 25 And the title is amended as follows: 26 On page 1, lines 2-3, delete those lines 27 28 and insert: 29 An act relating to construction services; 30 amending s. 725.06, F.S.; providing conditions, 31 limitations, and exceptions for construction 6 11:55 AM 04/30/03 s1724c2c-21k0t
SENATE AMENDMENT Bill No. CS for CS for SB 1724, 1st Eng. Amendment No. ___ Barcode 251488 1 contracts that limit indemnification; amending 2 s. 218.70, 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 7 11:55 AM 04/30/03 s1724c2c-21k0t