|HB 0162||Construction Indemnity Agreement|
|Sponsor:||O'NEILL||Handling House Bill:|
|Last Action:||04/24/95 - Hearing Conducted S Corrections & General Laws Committee|
|Effective Date:||August 28, 1995|
HS/HB 162 - This act declares indemnity or "hold harmless"
clauses in construction contracts void as against public policy.
A "hold harmless" clause is one in which a party contracts away
his liability for future negligence. Contracts already in
existence, construction bonds, and insurance contracts are
exempt. Contractual provisions requiring a party to name another
party as an insured are also exempt. Construction contracts
include contracts involving the design, planning, repair, moving,
demolition, or maintenance of any structure, road, appurtenance,
or appliance. The act does not prevent two parties from agreeing
to a specific limitation on the liability one party may have to
the other party.