Prohibiting certain indemnification provisions in contracts relating to design professional services.
Impact
The implementation of AB514 is expected to have significant implications for state laws governing contracts involving design professionals. It would restrict the use of specific indemnity clauses that may currently be prevalent in the industry. By limiting these provisions, the bill could promote fairer risk distribution between the parties involved in design services and potentially mitigate disputes related to liability issues arising from the execution of their duties.
Summary
AB514 proposes to prohibit certain indemnification provisions in contracts related to design professional services. This legislation aims to create a more equitable framework for design professionals, ensuring they are not held liable for areas outside of their control, which can often lead to substantial financial burdens. By addressing these provisions, the bill seeks to improve the contractual landscape for architects, engineers, and other design professionals involved in construction projects.
Contention
During discussions surrounding AB514, there have been voices both supporting and opposing the bill. Proponents argue that the existing indemnification practices unfairly place undue risk on design professionals, which can deter them from taking on projects or lead to inflated costs passed on to clients. Conversely, opponents may raise concerns about how limiting indemnification could impact accountability and the willingness of firms to engage in larger, more complex projects, fearing that it could lead to a decrease in quality or oversight in the design process.
Amending the act of July 9, 1970 (P.L.484, No.164), entitled "An act relating to indemnification agreements between architects, engineers or surveyors and owners, contractors, subcontractors or suppliers and indemnification agreements relating to snow removal or ice control services," providing for void and unenforceable provisions or terms in construction contracts; and making editorial changes.
Relating to the applicability of certain laws affecting indemnification agreements to certain contracts or agreements pertaining to electric utility infrastructure.
Amending the act of July 9, 1970 (P.L.484, No.164), entitled "An act relating to indemnification agreements between architects, engineers or surveyors and owners, contractors, subcontractors or suppliers and indemnification agreements relating to snow removal or ice control services," further providing for title of act; and providing for indemnification agreements relative to construction contracts, including agreements for architectural, engineering or land surveying services.
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.