S-2414               _______________________________________________

                                         SUBSTITUTE SENATE BILL NO. 5694

                        _______________________________________________

State of Washington                               51st Legislature                              1989 Regular Session

By Senate Committee on Financial Institutions & Insurance (originally sponsored by Senators von Reichbauer, Moore, Matson, Smitherman, Johnson, Rasmussen and Bender)

Read first time 3/1/89.

AN ACT Relating to allowable provisions in construction contracts; and amending RCW 4.24.115.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

        Sec. 1.  Section 2, chapter 46, Laws of 1967 ex. sess. as amended by section 601, chapter 305, Laws of 1986 and RCW 4.24.115 are each amended to read as follows:

          A covenant, promise, agreement or understanding in, or in connection with or collateral to, a contract or agreement relative to the construction, alteration, repair, addition to, subtraction from, improvement to, or maintenance of, any building, highway, road, railroad, excavation, or other structure, project, development, or improvement attached to real estate, including moving and demolition in connection therewith((,)):

(1) Purporting to indemnify against liability for damages arising out of bodily injury to persons or damage to property:

          (((1))) (a) Caused by or resulting from the sole negligence of the indemnitee, his agents or employees is against public policy and is void and unenforceable;

          (((2))) (b) Caused by or resulting from the concurrent negligence of (((a))) (i) the indemnitee or the indemnitee's agents or employees, and (((b))) (ii) the indemnitor or the indemnitor's agents or employees, is valid and enforceable only to the extent of the indemnitor's negligence and only if the agreement specifically and expressly provides therefor, and  may waive the indemnitor's immunity under industrial insurance, Title 51 RCW, only if the agreement specifically and expressly provides therefor and the waiver was mutually negotiated by the parties.  This subsection applies to agreements entered into after June 11, 1986.

(2) Purporting to require a general contractor, subcontractor, or specialty contractor to name an owner or an agent of an owner, another general contractor, subcontractor or other specialty contractor, or other person or entity as an additional or name insured on a liability insurance policy covering liability for damages arising out of bodily injury to persons or damage to property, procured by such general contractor, subcontractor, or specialty contractor, is against public policy and is void and unenforceable.  Nothing contained herein shall prohibit an owner from procuring insurance which covers liability for damage arising out of bodily injury to persons or damage to property for a general contractor, subcontractor, specialty contractor, or other person or entity.  This section does not apply to surety insurers who are liable for performance of contractual obligations on contracts covered by insurance policies.