Bill > S0395

This bill amends South Carolina law regarding hold harmless clauses in construction and design professional agreements by establishing clear guidelines for when indemnification provisions are enforceable. The bill defines several key terms, including "construction agreement" (any contract related to building, design, or maintenance), "derivative parties" (subcontractors, agents, and employees), and "fault" (which includes breach of contract, negligence, and regulatory violations). Specifically, the bill renders unenforceable any provisions that require indemnification for damages caused solely by the negligence of the party being indemnified, effectively protecting contractors and design professionals from being held liable for risks they did not create. The legislation prohibits agreements that force one party to defend or compensate another for damages primarily caused by the other party's own negligence, with exceptions for certain types of agreements such as insurance contracts, workers' compensation agreements, and specific utility providers. The bill aims to create more equitable risk allocation in construction and design contracts by preventing overly broad indemnification clauses that could unfairly shift liability. The new law will take effect immediately upon the Governor's approval.

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https://www.scstatehouse.gov/billsearch.php?billnumbers=0395&session=126&summary=B