S.B. 124 Enrolled

1

INDEMNIFICATION FOR DESIGN
2 PROFESSIONAL SERVICES
3 2009 GENERAL SESSION
4 STATE OF UTAH
5 Chief Sponsor: Gregory S. Bell
6 House Sponsor: Lorie D. Fowlke
7
8 LONG TITLE
9 General Description:
10 This bill forbids certain indemnification provisions in contracts entered into using
11 public funds by a state agency.
12 Highlighted Provisions:
13 This bill:
14 . defines "design professional" to include certain architects, engineers, and
15 surveyors;
16 . forbids a design professional from indemnifying certain parties to a contract
17 entered into by a state agency;
18 . provides exceptions for:
19 . a design professional's negligence, wrongful conduct, or certain other conduct;
20 and
21 . indemnification of others under the design professional's control; and
22 . prohibits waiving the indemnification prohibition by contract.
23 Monies Appropriated in this Bill:
24 None
25 Other Special Clauses:
26 None
27 Utah Code Sections Affected:
28 AMENDS:
29 72-6-107, as last amended by Laws of Utah 2008, Chapter 382

30 ENACTS:
31 63A-5-223, Utah Code Annotated 1953
32 63G-6-603, Utah Code Annotated 1953
33
34 Be it enacted by the Legislature of the state of Utah:
35 Section 1. Section 63A-5-223 is enacted to read:
36 63A-5-223. Contracts -- Certain indemnification provisions forbidden.
37 (1) As used in this section, "design professional" means:
38 (a) an architect, licensed under Title 58, Chapter 3a, Architects Licensing Act;
39 (b) a landscape architect, licensed under Title 58, Chapter 53, Landscape Architects
40 Licensing Act; and
41 (c) a professional engineer or professional land surveyor, licensed under Title 58,
42 Chapter 22, Professional Engineers and Professional Land Surveyors Licensing Act.
43 (2) (a) Beginning May 12, 2009, a contract, including an amendment to an existing
44 contract, entered into under authority of this chapter may not require that a design professional
45 indemnify another from liability claims that arise out of the design professional's services,
46 unless the liability claim arises from the design professional's negligent act, wrongful act, error
47 or omission, or other liability imposed by law.
48 (b) Subsection (2)(a) may not be waived by contract.
49 (c) Notwithstanding Subsections (2)(a) and (b), a design professional may be required
50 to indemnify a person for whom the design professional has direct or indirect control or
51 responsibility.
52 Section 2. Section 63G-6-603 is enacted to read:
53 63G-6-603. Contracts -- Certain indemnification provisions forbidden.
54 (1) As used in this section, "design professional" means:
55 (a) an architect, licensed under Title 58, Chapter 3a, Architects Licensing Act;
56 (b) a landscape architect, licensed under Title 58, Chapter 53, Landscape Architects
57 Licensing Act; and

58 (c) a professional engineer or professional land surveyor, licensed under Title 58,
59 Chapter 22, Professional Engineers and Professional Land Surveyors Licensing Act.
60 (2) (a) Beginning May 12, 2009, a contract, including an amendment to an existing
61 contract, entered into under authority of this chapter may not require that a design professional
62 indemnify another from liability claims that arise out of the design professional's services,
63 unless the liability claim arises from the design professional's negligent act, wrongful act, error
64 or omission, or other liability imposed by law.
65 (b) Subsection (2)(a) may not be waived by contract.
66 (c) Notwithstanding Subsections (2)(a) and (b), a design professional may be required
67 to indemnify a person for whom the design professional has direct or indirect control or
68 responsibility.
69 Section 3. Section 72-6-107 is amended to read:
70 72-6-107. Construction or improvement of highway -- Contracts -- Retainage --
71 Certain indemnification provisions forbidden.
72 (1) As used in this section, "design professional" means:
73 (a) an architect, licensed under Title 58, Chapter 3a, Architects Licensing Act;
74 (b) a landscape architect, licensed under Title 58, Chapter 53, Landscape Architects
75 Licensing Act; and
76 (c) a professional engineer or professional land surveyor, licensed under Title 58,
77 Chapter 22, Professional Engineers and Professional Land Surveyors Licensing Act.
78 [(1)] (2) (a) The department shall make plans, specifications, and estimates prior to the
79 construction or improvement of any state highway.
80 (b) Except as provided in Section 63G-6-502 and except for construction or
81 improvements performed with state prison labor, a construction or improvement project with
82 an estimated cost exceeding the bid limit as defined in Section 72-6-109 for labor and
83 materials shall be performed under contract awarded to the lowest responsible bidder.
84 (c) The advertisement for bids shall be published in a newspaper of general circulation
85 in the county in which the work is to be performed, at least once a week for two consecutive

86 weeks, with the last publication at least ten days before bids are opened.
87 (d) The department shall receive sealed bids and open the bids at the time and place
88 designated in the advertisement. The department may then award the contract but may reject
89 any and all bids.
90 (e) If the department's estimates are substantially lower than any responsible bid
91 received, the department may perform any work by force account.
92 [(2)] (3) If any payment on a contract with a private contractor for construction or
93 improvement of a state highway is retained or withheld, the payment shall be retained or
94 withheld and released as provided in Section 13-8-5 .
95 [(3)] (4) If the department performs a construction or improvement project by force
96 account, the department shall:
97 (a) provide an accounting of the costs and expenditures of the improvement including
98 material and labor;
99 (b) disclose the costs and expenditures to any person upon request and allow the
100 person to make a copy and pay for the actual cost of the copy; and
101 (c) perform the work using the same specifications and standards that would apply to a
102 private contractor.
103 [(4)] (5) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking
104 Act, the department shall establish procedures for:
105 (a) hearing evidence that a region within the department violated this section; and
106 (b) administering sanctions against the region if the region is found in violation.
107 (6) (a) Beginning May 12, 2009, a contract, including an amendment to an existing
108 contract, entered into under authority of this chapter may not require that a design professional
109 indemnify another from liability claims that arise out of the design professional's services,
110 unless the liability claim arises from the design professional's negligent act, wrongful act, error
111 or omission, or other liability imposed by law.
112 (b) Subsection (6)(a) may not be waived by contract.
113 (c) Notwithstanding Subsections (6)(a) and (b), a design professional may be required

114 to indemnify a person for whom the design professional has direct or indirect control or
115 responsibility.