SB24 Alabama 2023 Session

Summary

Primary Sponsor

Greg Albritton Senator

Republican

Session

Regular Session 2023

Title

Relating to construction contracts; to provide regulations for indemnification agreements in certain construction contracts.

Description

Under existing law, indemnification agreements in contracts for the professional services of a design professional or for the construction of a road or bridge are prohibited from requiring a party to the contract to indemnify, hold harmless, or defend another party to the contract for any damages arising from the negligent conduct of the party to be indemnified.

This bill would regulate indemnification agreements between parties to a construction contract to prohibit a party to a construction contract from being required to indemnify, hold harmless, or defend another party to the construction contract for liability caused by the sole negligence, or by the wantonness, recklessness, or intentional misconduct, of the party to be indemnified.

This bill would also prohibit indemnification agreements in a construction contract from requiring a party to the contract to indemnify, hold harmless, or defend another party to the contract for that party's own negligence unless the certain requirements are met, including an agreement on the extent of the monetary limitation of the indemnification. The bill would limit the indemnitor's indemnification obligation to the agreed upon monetary limitation and would require the SB24 INTRODUCED indemnitor to obtain insurance for that amount.

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Subjects

Contracts; construction contracts, indemnification agreements regulated.