ASA Central PA and ASA SWPA Support Anti-Indemnification Legislation

On Wednesday, February 4th, the Pennsylvania House Judiciary Committee passed HB1541 unanimously, a key anti-indemnification bill that ASA Central PA and SWPA Chapters have been advocating for since July 2019. ASA Central PA and ASA SWPA Chapters, along with other subcontractor and design professional groups, have long supported legislation to prohibit indemnification clauses in construction contracts. However, opposition from certain influential groups, particularly trial lawyers and the insurance industry, has hindered progress. To address these concerns, Representative Hohenstein introduced two versions of the bill last year (House Bill 1262 being the other), but neither succeeded in appeasing the opposition. The newly amended bill differs from both of those versions and includes a definition for "indemnitee," which seems to address many of the objections raised by lawyers and insurers. That said, general contractors are still opposing the bill. With the bill now out of committee, both chapters will keep us informed on when the full Pennsylvania House of Representatives will vote on this important legislation.