Sunday, September 22, 2013

Changes In The California Construction Law

SB474 California Construction Law:
Expanding the Prohibition on “Type I” Indemnity Agreements.
As of January 1, 2013, "Type I" indemnity agreements will no longer be enforceable in most construction contracts. The new law, which will apply to contracts entered into on and after January 1, 2013, expands the class of indemnity provisions that are unenforceable under California law. It also imposes stricter limitations on the ability of developers and general contractors to require their subcontractors to cover litigation defense costs. The new law, which will apply to contracts entered into on and after January 1, 2013, expands the class of indemnity provisions that are unenforceable under California law. It also imposes stricter limitations on the ability of developers and general contractors to require their subcontractors to cover litigation defense costs.

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