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Anti-Indemnity
Case
Study.
January
2005,
ASA was
victorious
in a
crucial
legal
challenge
that
threatened
the
Oregon
anti-indemnity
law.
Since
1995,
Oregon
law
provided
that
neither
a
subcontractor
nor its
insurer
could be
required
to
indemnify
another
contractor,
except
to the
extent
that the
negligence
of the
subcontractor
caused
the
underlying
loss.
But a
2004
court
case,
Walsh
Construction
v.
Mutual
of
Enumclaw,
challenged
the
anti-indemnity
protections
and
ASA’s
Subcontractor
Legal
Defense
Fund
submitted
the
amicus
brief
that
swayed
the
Oregon
court to
uphold
Oregon’s
anti-indemnity
laws.
Organize
an
effort
to enact
risk
allocation
reform
in your
state!
Prompt
Payment
Case
Study.
On
April
18,
2005,
ASA-Greater
Kansas
celebrated
as
Kansas
Gov.
Kathleen
Sebelius
(D)
signed
into law
the
Fairness
in
Private
Construction
Contract
Act, S.B.
33, a
private
construction
law that
provides
specialty
contractors
some of
the
strongest
prompt
payment
protections
in
America.
The new
law
requires
construction
owners
to pay
prime
contractors
within
30 days
for
completed,
undisputed
work,
and
contractors
to pay
their
subcontractors
within
seven
days of
receipt
of
payment
for
subcontractors'
work. It
also
preserves
contractors'
and
subcontractors'
ability
to
assert
mechanic's
lien
rights
notwithstanding
pay-if-paid
clauses,
provides
for
suspension
of work
after
progress
payments
are 14
days
late,
limits
retainage
to 10
percent,
establishes
equal
retainage
levels
at all
tiers,
bans
out-of-state
arbitration
and
litigation
on
disputes
over
Kansas
construction,
provides
attorney
fees for
the
prevailing
party in
disputes.
Organize
an
effort
to enact
prompt
payment
reform
in your
state!
Retainage
Case
Study.
On April
25,
2005,
ASA of
Montana
celebrated
when
Montana
Gov.
Brian
Schweitzer
(D)
signed
into law
a
reduction
in the
maximum
retainage
rate
from 10
to 5
percent
on
public
works.
The law
also
establishes
equal
retainage
levels
for all
tiers,
and
provides
for
interest
on late
progress
payments
and
line-item
release
of
retainage.
Organize
an
effort
to enact
retainage
reform
in your
state!
Other
Read
Engineering
News-Record's
Oct. 18,
2004,
editorial
on the
need for
reforms
in the
states.
Questions?
Contact
ASA's Government Relations Department at
governmentrelations@asa-hq.com.
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