(1) Except as provided in subsections (2) and (3), a construction contract provision
that requires one party to the contract to indemnify, hold harmless, insure, or defend
the other party to the contract or the other party's officers, employees, or agents
for liability, damages, losses, or costs that are caused by the negligence, recklessness,
or intentional misconduct of the other party or the other party's officers, employees,
or agents is void as against the public policy of this state.
(2) A construction contract may contain a provision:
(a) requiring one party to the contract to indemnify, hold harmless, or insure the
other party to the contract or the other party's officers, employees, or agents for
liability, damages, losses, or costs, including but not limited to reasonable attorney
fees, only to the extent that the liability, damages, losses, or costs are caused
by the negligence, recklessness, or intentional misconduct of a third party or of
the indemnifying party or the indemnifying party's officers, employees, or agents;
(b) requiring a party to the contract to purchase a project-specific insurance policy,
including but not limited to an owner's and contractor's protective insurance, a project
management protective liability insurance, or a builder's risk insurance.
(3) This section does not apply to indemnity of a surety by a principal on a construction
contract bond or to an insurer's obligation to its insureds.
(4) As used in this section, “construction contract” means an agreement for architectural
services, alterations, construction, demolition, design services, development, engineering
services, excavation, maintenance, repair, or other improvement to real property,
including any agreement to supply labor, materials, or equipment for an improvement
to real property.
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