Michigan-2011-HB5466-Engrossed

HB-5466, As Passed House, June 7, 2012

SUBSTITUTE FOR

HOUSE BILL NO. 5466

A bill to amend 1966 PA 165, entitled

"An act to invalidate certain requirements for indemnity in the

construction industry,"

by amending section 1 (MCL 691.991).

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 1. A covenant, promise, agreement or understanding in, or

in connection with or collateral to, a contract or agreement

relative to the design, construction, alteration, repair or

maintenance of a building, structure, appurtenance and appliance,

or infrastructure including moving, demolition and excavating

connected therewith, purporting to indemnify the promisee against

liability for damages arising out of bodily injury to persons or

damage to property caused by or resulting from the sole negligence

House Bill No. 5466 (H-1) as amended June 6, 2012

of the promisee or indemnitee, his agents or employees, is against

public policy and is void and unenforceable.

(2) When entering into a contract with a [Contractor or] Michigan-

licensed

architect, professional engineer, or surveyor in connection with or

collateral to, a contract or agreement relative to the design,

construction, alteration, repair or maintenance of a building,

structure, appurtenance, appliance, or infrastructure, including

moving, demolition, and excavating connected therewith, a public

entity shall not require the [Contractor or] Michigan-licensed architect,

professional engineer, or surveyor to defend [The Public entity or] any

other party from

claims, or to assume any liability or indemnify the public entity [OR ANY

OTHER PARTY]

for any amount greater than the degree of fault of the [Contractor

or] Michigan-

licensed architect, professional engineer, or surveyor [AND THAT OF THEIR

RESPECTIVE SUBCONSULTANTS]. A contract

provision executed in violation of this section is against public

policy and is void and unenforceable.

(3) As used in this section, "public entity" means the state

and all agencies thereof, any public body corporate within the

state and all agencies thereof, or any non-incorporated public body

within the state of whatever nature and all agencies thereof;

including, but not limited to, cities, villages, townships,

counties, school districts, intermediate school districts,

authorities, and colleges or universities described in section 4,

5, or 6 of article 8 of the state constitution of 1963 or

established under section 7 of article 8 of the state constitution

of 1963, and their employees and agents, which would include, but

not be limited to, construction managers retained by the public

entity.