2012 House Bill 5466 / Public Act 468

Revise government construction contract liability detail

Introduced in the House

March 13, 2012

Introduced by Rep. Kurt Heise (R-20)

To expand an anti-indemnification law establishing that a negligent party cannot use an indemnity clause in a construction contract to shift all obligations for which it is wholly responsible to another party. The bill would extend this to the design of a building, and include infrastructure and any improvement to real property; and prohibit a government entity from requiring an architect, engineer, landscape architect, surveyor, or contractor to defend the public entity or any other party through such a provision.

Referred to the Committee on Judiciary

May 10, 2012

Reported without amendment

With the recommendation that the substitute (H-1) be adopted and that the bill then pass.

June 6, 2012

Substitute offered

The substitute passed by voice vote

Amendment offered by Rep. Kurt Heise (R-20)

To clarify that the proposed restriction applies to requirements to indemnify the public entity or any other third party.

The amendment passed by voice vote

Amendment offered by Rep. Kurt Heise (R-20)

To establish that if passed the bill will go into effect on Sept. 1, 2012.

The amendment passed by voice vote

Amendment offered by Rep. Wayne Schmidt (R-104)

To clarify that the proposed restrictions apply to government contracts awarded to a "contractor".

The amendment passed by voice vote

June 7, 2012

Passed in the House 87 to 21 (details)

To expand an anti-indemnification law establishing that a negligent party cannot use an indemnity clause in a construction contract to shift all obligations for which it is wholly responsible to another party. The bill would extend this to the design of a building, and include infrastructure and any improvement to real property; and prohibit a government entity from requiring an architect, engineer, landscape architect, surveyor, or contractor to defend the public entity or any other party through such a provision.

Received in the Senate

June 12, 2012

Referred to the Committee on Judiciary

Nov. 29, 2012

Reported without amendment

With the recommendation that the substitute (S-4) be adopted and that the bill then pass.

Dec. 4, 2012

Substitute offered

The substitute passed by voice vote

Dec. 12, 2012

Amendment offered by Sen. Rick Jones (R-24)

To include subcontractors among the entities that cannot be required to provide an indemnity agreement.

The amendment passed by voice vote

Passed in the Senate 28 to 8 (details)

To expand an anti-indemnification law establishing that a negligent party cannot use an indemnity clause in a construction contract to shift all obligations for which it is wholly responsible to another party. The bill would extend this to the design of a building, and include infrastructure and any improvement to real property; and prohibit a government entity from requiring an architect, engineer, landscape architect, surveyor, contractor or subconractor to defend the public entity or any other party through such a provision.

Received in the House

Dec. 12, 2012

Dec. 13, 2012

Passed in the House 86 to 23 (details)

To concur with the Senate-passed version of the bill.

Signed by Gov. Rick Snyder

Dec. 22, 2012