Construction contracts: indemnity.
The bill clarifies that indemnity provisions that require contractors or subcontractors to indemnify the owner for incidents of death or bodily injury, as well as property damages, will be rendered unenforceable if these claims arise, in whole or in part, from the owner's negligence. This amendment is seen as a necessary update to better protect contractors and subcontractors, recognizing their limited control over overall project safety and procedures once liability is imposed on them.
Senate Bill 1326, introduced by Senator Hueso, aims to amend existing laws related to indemnification within construction contracts in California. The bill specifically addresses provisions within these contracts that attempt to impose liability on contractors, subcontractors, or suppliers for injuries or damages resulting from the owner's active negligence. Under the current legal framework, such provisions are void and unenforceable if they attempt to relieve the owner of liability when they—or their employees—are actively negligent.
The general sentiment regarding SB 1326 appears positive amongst construction professionals and legal experts who advocate for the protection of subcontractors and contractors. They argue that the bill brings much-needed clarity and fairness to contractual obligations in construction, thus promoting safer working environments. However, there may be pushback from parties who advocate for strong liability measures as safeguards against negligence, fearing that this bill could weaken accountability for owners.
A key point of contention surrounding SB 1326 is the balance between protecting contractors from unjust liability versus ensuring that property owners maintain accountability for the safety of their developments. Critics of the bill might argue that it could incentivize negligence among owners, while supporters assert that contractors should not bear the burden of liability that rightfully belongs to those with direct control over the project.