H.B. 19 Enrolled

REAL PROPERTY IMPROVEMENTS AGREEMENTS
1997 GENERAL SESSION
STATE OF UTAH
Sponsor: David Ure
AN ACT RELATING TO COMMERCE AND TRADE; MODIFYING PROHIBITION
AGAINST CERTAIN CONSTRUCTION CONTRACT PROVISIONS RELATING TO
LIABILITY; AND MAKING TECHNICAL CORRECTIONS.
This act affects sections of Utah Code Annotated 1953 as follows:
AMENDS:
13-8-1, as enacted by Chapter 35, Laws of Utah 1969
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 13-8-1 is amended to read:
13-8-1. Construction industry -- Agreements to indemnify.
[A covenant, promise, agreement or understanding in, or in connection with or collateral
to, a contract or agreement relative to the construction, alteration, repair or maintenance of a
building, structure, highway, appurtenance and appliance, including moving, demolition and
excavating connected therewith, 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, his agents or employees, or indemnitee, is against public
policy and is void and unenforceable.]
(1) For purposes of this section:
(a) "Construction contract" means a contract or agreement relative to the design,
construction, alteration, repair, or maintenance of a building, structure, highway, appurtenance,
appliance, or other improvement to real property, including moving, demolition, or excavating,
connected to the construction contract between:
(i) a construction manager;
(ii) a general contractor;
(iii) a subcontractor;
(iv) a sub-subcontractor;

(v) a supplier; or
(vi) any combination of persons listed in Subsections (1)(a)(i) through (v).
(b) "Indemnification provision" means a covenant, promise, agreement or understanding in,
in connection with, or collateral to a construction contract requiring the promisor to insure, hold
harmless, indemnify, or defend the promisee or others against liability if:
(i) the damages arise out of:
(A) bodily injury to a person;
(B) damage to property; or
(C) economic loss; and
(ii) the damages are caused by or resulting from the fault of the promisee, indemnitee, others,
or their agents or employees.
(2) Except as provided in Subsection (3), an indemnification provision in a construction
contract is against public policy and is void and unenforceable.
(3) When an indemnification provision is included in a contract related to a construction
project between an owner and party listed in Subsection (1)(a), in any action for damages described
in Subsection (1)(b)(i), the fault of the owner shall be apportioned among the parties listed in
Subsection (1)(a) pro rata based on the proportional share of fault of each of the parties listed in
Subsection (1)(a), if:
(a) the damages are caused in part by the owner; and
(b) the cause of the damages defined in Subsection (1)(b)(i) did not arise at the time and
during the phase of the project when the owner was operating as a party defined in Subsection (1)(a).
(4) This [act will] section may not be construed to affect or impair the obligations of
contracts or agreements, [which] that are in existence at the time [the act] this section or any
amendment to this section becomes effective.

- 2 -