Text: SF00443 Text: SF00445 Text: SF00400 - SF00499 Text: SF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN
1 1 Section 1. NEW SECTION. 613.20 LIMITATION OF LIABILITY
1 2 IN CONSTRUCTION CONTRACTS.
1 3 1. For purposes of this section:
1 4 a. "Limitation or elimination of tort liability" includes,
1 5 but is not limited to, an indemnification agreement.
1 6 b. "Major repair" means a construction, reconstruction,
1 7 demolition, or remodeling project with a value greater than
1 8 twenty-five percent of the estimated value of the structure
1 9 affected by the project.
1 10 2. An agreement for limitation or elimination of tort
1 11 liability in or related to a contract or agreement pertaining
1 12 to the construction, reconstruction, demolition, remodeling,
1 13 improvement, maintenance, or major repair of all or part of a
1 14 structure is void and unenforceable.
1 15 3. This section does not apply to the following:
1 16 a. An insurance contract, construction bond, workers'
1 17 compensation plan, or similar agreement lawfully issued by an
1 18 insurer or bonding company.
1 19 b. An offer to compromise disputed claims or an agreement
1 20 to settle existing or potential litigation claims.
1 21 c. A contract for or a clause in a contract requiring
1 22 arbitration or mediation of disputed claims.
1 23 d. A valid liquidated damages provision.
1 24 e. Limitation of liability established pursuant to
1 25 statute.
1 26 f. A limitation of liability negotiated between an owner
1 27 or occupant of real property and a design professional
1 28 licensed in Iowa.
1 29 EXPLANATION
1 30 This bill creates a new Code section providing that
1 31 limitations of liability, including but not limited to
1 32 indemnification provisions, related to certain construction
1 33 contracts are void and unenforceable. The section includes
1 34 definitions, as well as specifically excludes from its scope
1 35 certain insurance contracts, settlement agreements,
2 1 arbitration or mediation clauses, liquidated damages clauses,
2 2 agreements between property owners and design professionals,
2 3 and statutory limitations on liability which are related to
2 4 construction contracts.
2 5 LSB 2571SV 78
2 6 jj/gg/8
Text: SF00443 Text: SF00445 Text: SF00400 - SF00499 Text: SF Index Bills and Amendments: General Index Bill History: General Index
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