HB 1541 — An Act amending the act of July 9, 1970 (P.L.484, No.164), entitled "An act relating to indemnification agreements between architects, engineers or surveyors and owners, contractors, subcontractors or suppliers and indemnification agreements relating to snow removal or ice control services," providing for void and unenforceable provisions or terms in construction contracts; and making editorial changes.

PRIOR PRINTER'S NO.

1812 PRINTER'STHE NO.GENERAL ASSEMBLY OF PENNSYLVANIA HOUSE BILL Session of No.

2873 THE GENERAL ASSEMBLY OF PENNSYLVANIA HOUSE BILL Session of No.

BROWN, HILL-EVANS, SANCHEZ, JUNEWEBSTER, 3,OLSOMMER, 2025OMMER, GALLAGHER, GUENST, KOZAK, WARREN AND OTTEN, ASJUNE REPORTED3, FROM2025 REFERRED TO COMMITTEE ON JUDICIARY, HOUSEJUNE OF3, REPRESENTATIVES,2025 AS AMENDED, FEBRUARY 4, 2026 AN ACT Amending the act of July 9, 1970 (P.L.484, No.164), entitled "An act relating to indemnification agreements between architects, engineers or surveyors and owners, contractors, subcontractors or suppliers and indemnification agreements relating to snow removal or ice control services," providing for void and unenforceable provisions or terms inin" providing construction contracts and for insurance coverage for <-- additional insureds;

The act is amended by adding sections A SECTION <-- to read:

(1) A provision or term in a construction contract in which a party AN INDEMNITEE shall be indemnified, held harmless or <-- insured for damages, claims, losses or expenses arising out of bodily injury to persons, damage to property or economic damage caused by or resulting from the party's INDEMNITEE'S negligence, <-- in whole or in part, shall be void as against public policy and unenforceable.

(i) The term "construction contract" means a covenant, <-- agreement or understanding in, or in connection with, a contract or agreement made and entered into by a party relative to the design, construction, reconstruction, alteration, repair, maintenance, demolition, servicing or security of a building, structure, highway, railroad, appurtenance, land development or appliance.

(1) If a construction contract requires insurance coverage to be provided to an additional insured and the additional 20250HB1541PN2873 - 2 - insured is added to the relevant general liability insurance policy prior to any loss involving the additional insured, the 20250HB1541PN1812 - 2 - insurance coverage afforded to the additional insured shall not be broader than that which is required by the construction contract to provide for the additional insured.

(I) THE TERM "CONSTRUCTION CONTRACT" MEANS A COVENANT, <-- PROMISE, AGREEMENT OR UNDERSTANDING IN, OR IN CONNECTION WITH OR COLLATERAL TO, A CONTRACT, AGREEMENT OR PURCHASE ORDER, RELATIVE TO THE CONSTRUCTION, ALTERATION, REPAIR, MAINTENANCE, SERVICING OR SECURITY OF A BUILDING, STRUCTURE, HIGHWAY, RAILROAD, APPURTENANCE OR APPLIANCE, INCLUDING MOVING, DEMOLITION, EXCAVATING, GRADING, CLEARING, SITE PREPARATION OR DEVELOPMENT OF REAL PROPERTY CONNECTED THEREWITH, PURPORTING TO INDEMNIFY OR HOLD HARMLESS THE INDEMNITEE AGAINST LIABILITY FOR DAMAGES ARISING OUT OF BODILY INJURY TO PERSONS OR DAMAGE TO PROPERTY CAUSED BY OR RESULTING FROM THE NEGLIGENCE, IN WHOLE OR IN PART, OF THE INDEMNITEE.

(II) THE TERM "INDEMNITEE" MEANS AN OWNER, GENERAL CONTRACTOR OR AGENT OR EMPLOYE OF AN OWNER OR GENERAL CONTRACTOR THAT PRESENTS A PROVISION OR TERM IN A CONSTRUCTION CONTRACT FOR 20250HB1541PN2873 - 3 - INDEMNIFICATION.

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