SF 2890

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to contracts; regulating building and construction contracts; amending
Minnesota Statutes 2006, sections 337.01, subdivisions 2, 3, by adding a
subdivision; 337.02; 337.05, subdivision 1.

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

Section 1.

Minnesota Statutes 2006, section 337.01, subdivision 2, is amended to read:

Subd. 2.

Building and construction contract.

"Building and construction
contract" means a contract for the deleted text begin design, deleted text end construction, alteration, improvement, repair
or maintenance of real property, highways, roads or bridges. The term does not include
contracts for the maintenance or repair of machinery, equipment or other such devices
used as part of a manufacturing, converting or other production process, including
electric, gas, steam, and telephone utility equipment used for production, transmission,
or distribution purposes.

Sec. 2.

Minnesota Statutes 2006, section 337.01, is amended by adding a subdivision
to read:

new text begin Subd. 2a. new text end

new text begin Professional services contract. new text end

new text begin "Professional services contract" means
contracts for services that are provided by persons licensed under Minnesota Statutes,
sections 326.02 to 326.15.
new text end

Sec. 3.

Minnesota Statutes 2006, section 337.01, subdivision 3, is amended to read:

Subd. 3.

Indemnification agreement.

"Indemnification agreement" means an
agreement by the promisor to indemnify or hold harmless the promisee against liability or
claims of liability for damages arising out of bodily injury to persons or out of physical
damage to tangible or real property new text begin or for economic loss new text end .

Sec. 4.

Minnesota Statutes 2006, section 337.02, is amended to read:

337.02 UNENFORCEABILITY OF CERTAIN AGREEMENTS.

An indemnification agreement contained in, or executed in connection with, new text begin a
professional services contract or new text end a building and construction contract is unenforceable
except to the extent that: (1) the underlying injury or damage is attributable to the
negligent or otherwise wrongful act or omission, including breach of a specific contractual
duty, of the promisor or the promisor's independent contractors, agents, employees,
or delegatees; or (2) an owner, a responsible party, or a governmental entity agrees to
indemnify a contractor directly or through another contractor with respect to strict liability
under environmental laws.

Sec. 5.

Minnesota Statutes 2006, section 337.05, subdivision 1, is amended to read:

Subdivision 1.

Agreements valid.

Sections 337.01 to 337.05 do not affect the
validity of deleted text begin agreements deleted text end new text begin building and construction contracts new text end whereby a promisor agrees to
provide specific insurance coverage for the benefit of others.