HCS/HB 450 - This act revises portions of the law concerning construction contracts.

This act prohibits public owners and construction managers, except the Missouri Department of Transportation, from accepting any bid for a public construction contract in excess of $200,000 unless the bidder meets certain requirements with respect to experience and performance, insurance coverage and workload due to other projects. The public owner shall not award a contract to the low bidder if the public owner finds that the low bidder does not meet the requirements. This portion of this act does not apply to State Highways and Transportation Commission projects.

This act also voids construction indemnification agreements, which hold someone harmless for damages resulting from negligence, omissions or wrongdoing, as against public policy and holds such agreements unenforceable, except for agreements of the indemnitor to hold another harmless for the indemnitor's own acts or the acts of the indemnitor's subcontractors and others within the tier. This portion of the act does not apply to construction bonds, insurance contracts or contractual provisions requiring one party to name another as an insured. Only agreements entered into after August 27, 1997, would be affected.

This act is similar to SB 324 (1997).
MARGARET J. TOALSON