Earlier in the year our industry strongly opposed SB 474 (Evans; D-Santa Rosa) a bill that would have shifted construction liability issues solely on the property owner and/or general contractor of a project. Over months of negotiations, language was accepted that relieved most of the concern with the bill.
SB 474 prohibits property owners from making another person responsible for the property owner’s own active negligence in an indemnity agreement related to a construction contract. However, SB 474 maintains the property owner’s ability to require any party involved in the construction process to provide a full, complete and immediate defense of the property owner if a property owner is sued. The owner’s ability to obtain insurance covering the owner for these defense and indemnity obligations is preserved
We are neutral on the bill, not encouraging the Governor to take action either way on this bill.
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