HOUSE BILL NO. 4880

A bill to amend 1966 PA 165, entitled

"An act to invalidate certain requirements for indemnity in the construction industry,"

by amending section 1 (MCL 691.991), as amended by 2012 PA 468.

the people of the state of michigan enact:

Sec. 1. (1) In a contract for the design, construction, alteration, repair, or maintenance of a building, a structure, an appurtenance, an appliance, a highway, road, bridge, water line, sewer line, or other infrastructure, or any other improvement to real property, including moving, demolition, and excavating connected therewith, with that improvement, a provision purporting to indemnify the promisee against liability for damages arising out of bodily injury to persons or damage to property caused by or resulting from the sole negligence of the promisee or indemnitee, or his the agents or employees of the promisee or indemnitee, is against public policy and is void and unenforceable.

(2) When entering into a contract with a Michigan-licensed architect, professional engineer, landscape architect, or professional surveyor, or a landscape architect who is authorized to do business in this state, for the design of a building, a structure, an appurtenance, an appliance, a highway, road, bridge, water line, sewer line, or other infrastructure, or any other improvement to real property, or a contract with a contractor for the construction, alteration, repair, or maintenance of any such an improvement to real property, including moving, demolition, and excavating connected therewith, with that improvement, a public entity shall not require the Michigan-licensed architect, professional engineer, landscape architect, or professional surveyor, the landscape architect, or the contractor to defend the public entity or any other party from claims, or to assume any liability or indemnify the public entity or any other party for any amount greater than the degree of fault of the Michigan-licensed architect, professional engineer, landscape architect, or professional surveyor, the landscape architect, or the contractor and that of his or her the contractor's respective subconsultants or subcontractors. A contract provision executed in violation of this section is against public policy and is void and unenforceable.

(3) For the purposes of this section, a contractor may be an individual, sole proprietorship, partnership, corporation, limited liability company, joint venture, construction manager, or other business arrangement.

(4) As used in this section, "public entity" means this state and all agencies thereof, of this state, any public body corporate within this state and all agencies thereof, of those public bodies, and any nonincorporated public body within this state of whatever nature and all agencies thereof; of those public bodies, including, but not limited to, cities, villages, townships, counties, school districts, intermediate school districts, authorities, and community and junior colleges as provided for in section 7 of article VIII of the state constitution of 1963, and their any employees and agents of those public entities, including, but not limited to, construction managers or other business arrangements retained by or contracting with the public entity to manage or administer the contract for the public entity. However, public Public entity does not include institutions of higher education as described or provided for in section 4 or 6 of article VIII of the state constitution of 1963, or their any employees or agents of those institutions.

(5) Nothing in this act affects the application of 1964 PA 170, MCL 691.1401 to 691.1419.

Enacting section 1. This amendatory act does not take effect unless House Bill No. 4879 (request no. H02611'25) of the 103rd Legislature is enacted into law.