Prohibits broad indemnification by a design professional of a state or local agency or political subdivision involving public work for contracts except to the extent that damages were caused by or the result of the negligence, recklessness, or willful misconduct of the design professional.
Summary
Bill S05364 amends the general municipal law, public authorities law, and state finance law to limit the liability of design professionals in contracts with municipal and state authorities. Specifically, it prohibits any contractual obligation that requires design professionals to indemnify or defend these authorities for claims arising from public works, except in cases where the claims are due to the design professional's own negligence, recklessness, or willful misconduct. This change aims to protect design professionals from broad indemnification clauses that could expose them to significant financial risk.
Impact
The bill will significantly alter the liability landscape for design professionals working on public projects in New York. By rendering indemnification clauses void unless tied to the design professional's own misconduct, it aligns the liability of design professionals more closely with their actual performance and fault. This could encourage more professionals to engage with public contracts, potentially leading to more competitive bidding and improved quality in public works projects.
Sentiment
The general sentiment around Bill S05364 appears to be supportive among design professionals and some lawmakers who advocate for fair liability standards. However, there may be concerns from municipal and state authorities regarding the potential increase in their liability exposure as a result of this bill, which could lead to a more cautious approach in future contracts.
Contention
Notable points of contention include the balance of risk between design professionals and public authorities. Some lawmakers and representatives of municipal agencies argue that limiting indemnification could lead to increased costs for public projects, as authorities may need to increase their insurance coverage or face higher liability risks. Conversely, design professionals argue that the current indemnification requirements are overly burdensome and can deter them from participating in public contracts.
Same As
Prohibits broad indemnification by a design professional of a state or local agency or political subdivision involving public work for contracts except to the extent that damages were caused by or the result of the negligence, recklessness, or willful misconduct of the design professional.
AN ACT to amend Tennessee Code Annotated, Title 8; Title 33; Title 36; Title 49; Title 52; Title 56; Title 63 and Title 68, relative to professional counselors.
AN ACT to amend Tennessee Code Annotated, Title 8; Title 33; Title 36; Title 49; Title 52; Title 56; Title 63 and Title 68, relative to professional counselors.
Occupations: individual licensing and registration; licensure of professional guardians and conservators; require. Amends sec. 303a of 1980 PA 299 (MCL 339.303a) & adds art. 14A.