Senate Bill sb2524
CODING: Words stricken are deletions; words underlined are additions.
Florida Senate - 2006 SB 2524
By Senator Baker
24-1331-06
1 A bill to be entitled
2 An act relating to construction contracts;
3 amending s. 725.06, F.S.; deleting certain
4 exceptions to the prohibition against certain
5 indemnification or hold-harmless agreements or
6 agreements to insure certain other parties in
7 construction contracts; providing an exception
8 for certain public utilities and other public
9 agencies; providing an effective date.
10
11 Be It Enacted by the Legislature of the State of Florida:
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13 Section 1. Section 725.06, Florida Statutes, is
14 amended to read:
15 725.06 Construction contracts; limitation on
16 indemnification.--
17 (1) Except as provided in subsection (3), any portion
18 of any agreement or contract for or in connection with, or any
19 guarantee of or in connection with, any construction,
20 alteration, repair, or demolition of a building, structure,
21 appurtenance, or appliance, including moving and excavating
22 associated therewith, between an owner of real property and an
23 architect, engineer, general contractor, subcontractor,
24 sub-subcontractor, or materialman or any combination thereof
25 wherein any party referred to herein promises to indemnify or
26 hold harmless the other party to the agreement, contract, or
27 guarantee for liability for damages to persons or property
28 caused in whole or in part by any act, omission, or default of
29 the indemnitee arising from the contract or its performance,
30 shall be void and unenforceable. unless the contract contains
31 a monetary limitation on the extent of the indemnification
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CODING: Words stricken are deletions; words underlined are additions.
Florida Senate - 2006 SB 2524
24-1331-06
1 that bears a reasonable commercial relationship to the
2 contract and is part of the project specifications or bid
3 documents, if any. Notwithstanding the foregoing, the monetary
4 limitation on the extent of the indemnification provided to
5 the owner of real property by any party in privity of contract
6 with such owner shall not be less than $1 million per
7 occurrence, unless otherwise agreed by the parties.
8 Indemnification provisions in any such agreements, contracts,
9 or guarantees may not require that the indemnitor indemnify
10 the indemnitee for damages to persons or property caused in
11 whole or in part by any act, omission, or default of a party
12 other than:
13 (a) The indemnitor;
14 (b) Any of the indemnitor's contractors,
15 subcontractors, sub-subcontractors, materialmen, or agents of
16 any tier or their respective employees; or
17 (c) The indemnitee or its officers, directors, agents,
18 or employees. 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 or
21 its officers, directors, agents or employees, or for statutory
22 violation or punitive damages except and to the extent the
23 statutory violation or punitive damages are caused by or
24 result from the acts or omissions of the indemnitor or any of
25 the indemnitor's contractors, subcontractors,
26 sub-subcontractors, materialmen, or agents of any tier or
27 their respective employees.
28 (2) Any portion of an agreement or contract for or in
29 connection with, or a guarantee of or in connection with, any
30 construction, alteration, repair, or demolition of a building,
31 structure, appurtenance, or appliance, including moving and
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CODING: Words stricken are deletions; words underlined are additions.
Florida Senate - 2006 SB 2524
24-1331-06
1 excavating associated therewith, between an owner of real
2 property and an architect, engineer, general contractor,
3 subcontractor, sub-subcontractor, or materialman, or any
4 combination thereof, wherein any party referred to in this
5 subsection undertakes to insure or purchase insurance for the
6 other party to the agreement, contract, or guarantee for
7 liability for damages to persons or property caused in whole
8 or in part by any act, omission, or default of the party to be
9 insured is void and unenforceable, except that insurance may
10 be purchased to cover the vicarious liability that the party
11 to be insured may have for the actions of the other party to
12 the agreement, contract, or guarantee. A construction contract
13 for a public agency or in connection with a public agency's
14 project may require a party to that contract to indemnify and
15 hold harmless the other party to the contract, their officers
16 and employees, from liabilities, damages, losses and costs,
17 including, but not limited to, reasonable attorney's fees, to
18 the extent caused by the negligence, recklessness, or
19 intentional wrongful misconduct of the indemnifying party and
20 persons employed or utilized by the indemnifying party in the
21 performance of the construction contract.
22 (3) This section does not limit indemnity agreements
23 or agreements to insure that are between only an entity
24 regulated by the Public Service Commission or a public agency
25 and an architect, engineer, general contractor, subcontractor,
26 sub-subcontractor, or materialman, if the contract contains a
27 monetary limitation on the extent of the indemnification that
28 bears a reasonable commercial relationship to the contract and
29 is part of any project specifications or bid documents. Except
30 as specifically provided in subsection (2), a construction
31 contract for a public agency or in connection with a public
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CODING: Words stricken are deletions; words underlined are additions.
Florida Senate - 2006 SB 2524
24-1331-06
1 agency's project may not require one party to indemnify,
2 defend, or hold harmless the other party, its employees,
3 officers, directors, or agents from any liability, damage,
4 loss, claim, action, or proceeding, and any such contract
5 provision is void as against public policy of this state.
6 (4) This section does not affect any contracts,
7 agreements, or guarantees entered into before the effective
8 date of this section or any renewals thereof.
9 Section 2. This act shall take effect July 1, 2006.
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12 SENATE SUMMARY
13 Deletes certain exceptions to prohibitions against
certain indemnification or hold-harmless agreements or
14 agreements to insure certain other parties in
construction contracts. Provides an exception for certain
15 public utilities and other public agencies.
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CODING: Words stricken are deletions; words underlined are additions.