|Posted:||January 11, 2021 04:18 PM|
|From:||Representative Todd Stephens and Rep. Michael J. Driscoll|
|To:||All House members|
|Subject:||Anti-Indemnity in Construction Contracts|
|Last session we introduced legislation amending Act 164 of 1970, Relating to Indemnification Agreements to prohibit certain indemnification agreements in construction contracts. Our bill, HB1887, was reported out of committee late in the session and we are reintroducing the legislation this session.
Currently, Pennsylvania does not have an anti-indemnity statute regarding construction contracts; therefore Pennsylvania has no statutory prohibition of broad and intermediate forms of indemnity. Due to the lack of a Pennsylvania anti-indemnity statute, many Pennsylvania construction contractors face the unfair practice of having to accept liability for another party’s negligence when entering into construction contracts. This legislation would allow only for a limited form of indemnification, exclusively for losses caused by the negligence of the indemnifying party (Indemnifier).
This legislation is similar to anti-indemnity statues in neighboring states like Delaware, New York, and Ohio. 45 states have enacted some form of anti-indemnity statutes limiting the enforceability of various forms of indemnity clauses in construction contracts.
I urge you to join us in ensuring that construction contractors provide indemnity only for losses arising out of their own negligent conduct by co-sponsoring this legislation.
Introduced as HB424