Committee approves bill limiting construction indemnity clauses, unanimously amended
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Summary
House Bill 1541, sponsored by Representatives Hohenstein and Brown, would restrict indemnity clauses so a party is responsible only for losses caused by its own negligence; an agreed technical amendment was adopted and the committee reported the bill unanimously.
Representatives Hohenstein and Brown presented House Bill 1541 as a reform to construction indemnity law intended to prevent contractors from being required to assume liability for others' negligence. Hohenstein said the change would allow responsible contractors to build without being held liable for mistakes by unrelated parties and noted that only five states lack such anti‑indemnity rules.
Rep. Brown described how customary indemnity clauses can shift risk to parties who cannot control it and gave a constituent example of a small electrical subcontractor who faced liability after a third‑party contractor caused a fatal accident on a jobsite. "Construction works best when risk is assigned to the party best able to manage it," Brown said.
Counsel described an agreed Ledbetter amendment as technical and clarifying; Chairman Kaufman and other members voiced support for the amendment and the sponsors' commitment to continue stakeholder conversations with builders, small business groups and insurers. Rep. Bonner said the bill was a start but urged considering wider prohibitions beyond construction contracts.
The committee reported HB 1541 as amended with unanimous support. Sponsors and counsel said the amendment provides necessary definitions and technical fixes while preserving the bill's intent to limit indemnification to losses caused by a party's own negligence.
