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SB 1271

  • 1.  SB 1271

    Posted 05-24-2019 18:05
    I was under the impression that recently passed SB 1271 changed indemnification language for private construction contracts including commercial construction to proportional liability. I recently heard that SB 1271 only applied to Residential construction, and that ARS 32-1159 still applies to private commercial projects. Would appreciate more information from more informed sources ... any attorneys care to comment ? Could someone with more knowledge please clarify. thanks

    David Miller CCIFP, CRIS, CTP
    Cfo / Treasurer
    Jokake Construction Services, Inc.
    Phoenix AZ
    (602) 224-4573

  • 2.  RE: SB 1271

    Posted 05-28-2019 19:45
      |   view attached

    I'm not an attorney, but I did serve on the Technical Advisory Committee for SB1271. The bill adds a new section 32-1159.01 titled "Indemnity agreements in construction and architect-engineering dwelling contacts void: definitions".  You are correct that it only applies to contracts involving a dwelling and ARS 32-1159 still applies to private commercial projects.  It didn't start out this way, but it was ultimately limited to residential and also makes a number of changes to the Purchaser Dwelling Act/Right to Repair law.  A copy of the bill is attached.

    The bill includes a continuation of the Construction Liability Apportionment Study Committee (CLASC) and the intention is to push forward to address issues impacting private commercial contracts.

    The ASA is having a briefing on the bill. Here is the flyer for the event. Advocacy Briefing: SB1271- Fairness In Arizona Contracting: Now That It's Law, What Next? | American Subcontractors Association of Arizona

    Dennis Tsonis CPCU
    Lovitt & Touche, Inc.
    Tempe AZ
    (602) 778-7027