This document includes Senate 2nd and 3rd Reading Floor Amendments incorporated into the bill on Thu, Mar 8, 2018 at 11:59 AM by lpoole.
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7 LONG TITLE
8 General Description:
9 This bill enacts provisions related to design professional liability.
10 Highlighted Provisions:
11 This bill:
12 ▸ defines terms;
13 ▸ prohibits a provision in a design professional services contract that requires a design
14 professional to indemnify, hold harmless, or reimburse a person for attorney fees or
15 other costs, except in the case of:
16 • the design professional's breach of contract, negligence, recklessness, or
17 intentional misconduct; or
18 • the design professional's subconsultant's negligence;
19 ▸ prohibits a provision in a design professional services contract that requires a design
20 professional to defend a person against a claim alleging liability for damages;
21 ▸ establishes a standard of care for design professionals; and
22 ▸ prohibits a person from establishing a different standard of care for a design
23 professional in a design professional services contract.
24 Money Appropriated in this Bill:
25 None
26 Other Special Clauses:
27 None
28 Utah Code Sections Affected:
29 ENACTS:
30 13-8-7, Utah Code Annotated 1953
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32 Be it enacted by the Legislature of the state of Utah:
33 Section 1. Section 13-8-7 is enacted to read:
34 13-8-7. Contract for design professional services -- Agreements to indemnify.
35 (1) As used in this section:
36 (a) "Design professional" means:
37 (i) an individual licensed under:
38 (A) Title 58, Chapter 3a, Architects Licensing Act;
39 (B) Title 58, Chapter 22, Professional Engineers and Professional Land Surveyors
40 Licensing Act; or
41 (C) Title 58, Chapter 53, Landscape Architects Licensing Act; or
42 (ii) Ŝ→ [
42a that require a license
43 described in Subsection (1)(a)(i).
44 (b) "Design professional services" means:
45 (i) professional services within the scope of the practice of architecture as defined in
46 Section 58-3a-102;
47 (ii) professional engineering or professional land surveying as defined in Section
48 58-22-102; or
49 (iii) professional services within the scope of the practice of landscape architecture as
50 defined in Section 58-53-102.
51 (c) Ŝ→ (i) ←Ŝ "Design professional services contract" means a contract under which a
51a design
52 professional agrees to provide design professional services:
53 Ŝ→ [
54 Ŝ→ [
54a Ŝ→ (ii) "Design professional service contract" does not include a construction contract, as
54b defined in Section 13-8-1. ←Ŝ
55 (d) "Indemnification provision" means a covenant, promise, agreement, or
56 understanding in, in connection with, or collateral to, a design professional services contract
57 that requires the design professional to:
58 (i) indemnify or hold harmless any person from or against liability for damages other
59 than liability for damages to the extent caused by or resulting from:
60 (A) the design professional's breach of contract, negligence, recklessness, or intentional
61 misconduct; or
62 (B) the design professional's subconsultant's negligence;
63 (ii) defend any person from or against a claim alleging liability for damages, including
64 a claim alleging:
65 (A) the design professional's breach of contract, negligence, recklessness, or intentional
66 misconduct; or
67 (B) the design professional's subconsultant's negligence; or
68 (iii) reimburse any person for attorney fees or other costs incurred by the person in
69 defending against a claim alleging liability for damages, except to the extent the attorney fees
70 or costs were incurred due to:
71 (A) the design professional's breach of contract, negligence, recklessness, or intentional
72 misconduct; or
73 (B) the design professional's subconsultant's negligence.
74 (e) "Governmental entity" means the same as that term is defined in Section
75 63G-7-102.
76 (f) "Improvement" means the same as that term is defined in Section 78B-2-225.
77 (g) "Subconsultant" means a person with whom a design professional contracts to
78 provide a service related to or part of the design professional services that the design
79 professional agrees to perform under a design professional services contract.
80 (2) An indemnification provision is void.
81 (3) (a) A design professional shall perform design professional services under a design
82 professional services contract consistent with the professional skill and care ordinarily provided
83 by other design professionals:
84 (i) with the same or similar professional license; and
85 (ii) providing the same or similar design professional service:
86 (A) in the same or similar locality;
87 (B) at the same or similar time; and
88 (C) under the same or similar circumstances.
89 (b) (i) Except as provided in Subsection (3)(b)(ii), a design professional services
90 contract may not establish a standard of care different from the standard of care described in
91 Subsection (3)(a).
92 (ii) A design professional services contract may require a design professional to
93 perform design professional services consistent with a specialized design expertise if the nature
94 of the project that is the subject to the design professional services contract reasonably requires
95 the specialized design expertise.
96 (c) A provision in a design professional services contract that purports to waive or
97 conflicts with a provision of Subsection (3)(b) is void.
98 (4) The provisions of this section apply to a design professional services contract
99 executed on or after May 8, 2018.