Bill Text: IA SF396 | 2011-2012 | 84th General Assembly | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: A bill for an act relating to the regulation of indemnification provisions in construction contracts. (Formerly SSB 1172.) Effective 7-1-11.

Sponsorship: Committee Bill

Status: (Passed) 2011-12-31 - END OF 2011 ACTIONS [SF396 Detail]

Download: Iowa-2011-SF396-Amended.html
Senate File 396 - Reprinted SENATE FILE 396 BY COMMITTEE ON COMMERCE (SUCCESSOR TO SSB 1172) (As Amended and Passed by the Senate March 22, 2011 ) A BILL FOR An Act relating to the regulation of indemnification provisions 1 in construction contracts. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 SF 396 (3) 84 je/rj
S.F. 396 Section 1. NEW SECTION . 537A.5 Indemnity agreements —— 1 construction contracts. 2 1. As used in this section, “construction contract” 3 means an agreement relating to the construction, alteration, 4 improvement, development, demolition, excavation, 5 rehabilitation, maintenance, or repair of buildings, highways, 6 roads, streets, bridges, tunnels, transportation facilities, 7 airports, water or sewage treatment plants, power plants, 8 or any other improvements to real property in this state, 9 including shafts, wells, and structures, whether on ground, 10 above ground, or underground, and includes agreements for 11 architectural services, design services, engineering services, 12 construction services, construction management services, 13 development services, maintenance services, material purchases, 14 equipment rental, and labor. “Construction contract” includes 15 all public, private, foreign, or domestic agreements as 16 described in this subsection other than such public agreements 17 relating to highways, roads, and streets. 18 2. Except as excluded under subsection 3, a provision 19 in a construction contract that requires one party to the 20 construction contract to indemnify, hold harmless, or defend 21 any other party to the construction contract, including the 22 indemnitee’s employees, consultants, agents, or others for 23 whom the indemnitee is responsible, against liability, claims, 24 damages, losses, or expenses, including attorney fees, to 25 the extent caused by or resulting from the negligent act or 26 omission of the indemnitee or of the indemnitee’s employees, 27 consultants, agents, or others for whom the indemnitee is 28 responsible, is void and unenforceable as contrary to public 29 policy. 30 3. This section does not apply to the indemnification 31 of a surety by a principal on any surety bond, an insurer’s 32 obligation to its insureds under any insurance policy or 33 agreement, a borrower’s obligations to its lender, or any 34 obligation of strict liability otherwise imposed by law. 35 -1- SF 396 (3) 84 je/rj 1/ 1
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