Bill Text: AZ HB2310 | 2010 | Forty-ninth Legislature 2nd Regular | Introduced
Bill Title: Contracts; construction; architect-engineer; proportional liability
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2010-02-17 - Referred to House JUD Committee [HB2310 Detail]
Download: Arizona-2010-HB2310-Introduced.html
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REFERENCE TITLE: contracts; construction; architect-engineer; proportional liability |
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State of Arizona House of Representatives Forty-ninth Legislature Second Regular Session 2010
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HB 2310 |
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Introduced by Representatives Hendrix, Schapira
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AN ACT
amending section 32-1159, Arizona Revised Statutes; relating to contractors.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 32-1159, Arizona Revised Statutes, is amended to read:
32-1159. Indemnity agreements in construction and architect‑engineer contracts void; definitions
A. A covenant, clause or understanding in, collateral to or affecting a construction contract or architect‑engineer professional service contract that purports to insure, to indemnify, to hold harmless or to defend the promisee from or against liability for loss or damage resulting from the sole negligence of the promisee or the promisee's agents, employees or indemnitee indemnitees is against the public policy of this state and is void.
B. Notwithstanding subsection A of this section, a contractor who is responsible for the performance of a construction contract may fully indemnify a person for whose account the construction contract is not being performed and who, as an accommodation, enters into an agreement with the contractor that permits the contractor to enter on or adjacent to its property to perform the construction contract for others.
C. This section applies to all construction contracts and architect‑engineer professional service contracts entered into between private parties. This section does not apply to:
1. Agreements to which this state or a political subdivision of this state is a party, including intergovernmental agreements and agreements governed by sections 34‑226 and 41‑2586.
2. Agreements entered into by agricultural improvement districts under title 48, chapter 17.
3. Agreements for indemnification of a surety on a payment or performance bond by its principal or indemnitors.
4. Agreements between an insurer under an insurance policy or contract and its named insureds.
5. Agreements between an insurer under an insurance policy or contract and its additional insureds, except that the agreements shall be subject to the limitations of subsections A and B of this section.
6. Agreements between an insurer and its insureds under an insurance policy or contract for a defined project or workplace, except that such agreements shall not require or permit one or more insureds under those agreements to indemnify, to hold harmless or to defend any other insured under those agreements beyond the limitations of subsections A and B of this section and the insurer shall not be excused from its duty under those agreements to defend, indemnify and pay on behalf of its insureds.
D. In For the purposes of this section:
1. "Architect‑engineer professional service contract" means a written or oral agreement relating to the survey, design, design‑build, construction administration, study, evaluation or other professional services furnished in connection with any actual or proposed construction, alteration, repair, maintenance, moving, demolition or excavation of any structure, street or roadway, appurtenance or other development or improvement to land.
2. "Construction contract" means a written or oral agreement relating to the actual or proposed construction, alteration, repair, maintenance, moving, demolition or excavation of any structure, street or roadway, appurtenance or other development or improvement to land.
Sec. 2. Applicability
This act applies to construction contracts or architect-engineer professional service contracts that are entered into from and after December 31, 2010.
