HB-5466, As Passed Senate, December 12, 2012

 

 

 

 

 

 

 

 

 

 

 

 

 

SENATE 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. (1) A covenant, promise, agreement or understanding

 

in, or in connection with or collateral to, a contract or agreement

 

relative to In a contract for the design, construction, alteration,

 

repair, or maintenance of a building, a structure, an appurtenance,

 

and an appliance, a highway, road, bridge, water line, sewer line,

 

or other infrastructure, or any other improvement to real property,

 

including moving, demolition, and excavating connected therewith, a

 

provision purporting to indemnify the promisee against liability

 

House Bill No. 5466 as amended December 12, 2012

 

for damages arising out of bodily injury to persons or damage to

 

property caused by or resulting from the sole negligence 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 Michigan-licensed

 

architect, professional engineer, landscape architect, or

 

professional surveyor for the design of a building, a structure, an

 

appurtenance, an appliance, a highway, road, bridge, water line,

 

sewer line, or other infrastructure, or any other improvement to

 

real property, or a contract with a contractor for the

 

construction, alteration, repair, or maintenance of any such

 

improvement, including moving, demolition, and excavating connected

 

therewith, a public entity shall not require the Michigan-licensed

 

architect, professional engineer, landscape architect, or

 

professional surveyor or the contractor 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 Michigan-licensed

 

architect, professional engineer, landscape architect, or

 

professional surveyor, or the contractor and that of his or her

 

respective subconsultants <<OR SUBCONTRACTORS>>. A contract provision

executed in

violation of this section is against public policy and is void and

 

unenforceable.

 

     (3) For the purposes of this section, a contractor may be an

 

individual, sole proprietorship, partnership, corporation, limited

 

liability company, joint venture, construction manager, or other

 

business arrangement.

 

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

 

and all agencies thereof, any public body corporate within this

 

state and all agencies thereof, and any nonincorporated public body

 

within this state of whatever nature and all agencies thereof;

 

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

 

counties, school districts, intermediate school districts,

 

authorities, and community and junior colleges as provided for in

 

section 7 of article VIII of the state constitution of 1963, and

 

their employees and agents, including, but not limited to,

 

construction managers or other business arrangements retained by or

 

contracting with the public entity to manage or administer the

 

contract for the public entity. However, public entity does not

 

include institutions of higher education as described or provided

 

for in section 4 or 6 of article VIII of the state constitution of

 

1963, or their employees or agents.

 

     (5) Nothing in this act affects the application of 1964 PA

 

170, MCL 691.1401 to 691.1419.

 

     Enacting section 1. This amendatory act takes effect March 1,

 

2013.