Certain indemnification provisions in construction agreement void

ORS 30.140 Certain indemnification provisions in construction agreement void Amended by SB 1575 Effective since January 1, 2025 Relating to construction agreements; creating new provisions; and amending ORS 30.140 . (1) Except to the extent provided under subsection (2) of this section, any provision in a construction agreement that requires a person or that person’s surety or insurer to indemnify another against liability for damage arising out of death or bodily injury to persons or damage to property caused in whole or in part by the negligence of the indemnitee is void. (2) This section does not affect any provision in a construction agreement that requires a person or that person’s surety or insurer to indemnify another against liability for damage arising out of death or bodily injury to persons or damage to property to the extent that the death or bodily injury to persons or damage to property arises out of the fault of the indemnitor, or the fault of the indemnitor’s agents, representatives or subcontractors. (3) As used in this section, “construction agreement” means any written agreement for the planning, design, construction, alteration, repair, improvement or maintenance of any building, highway, road excavation or other structure, project, development or improvement attached to real estate including moving, demolition or tunneling in connection therewith. (4) This section does not apply to: (a) Any real property lease or rental agreement between a landlord and tenant whether or not any provision of the lease or rental agreement relates to or involves planning, design, construction, alteration, repair, improvement or maintenance as long as the predominant purpose of the lease or rental agreement is not planning, design, construction, alteration, repair, improvement or maintenance of real property; or (b) Any personal property lease or rental agreement. (5) No provision of this section shall be construed to apply to a “railroad” as defined in ORS 824.200 (Definitions for 824.200 to 824.256) . [1973 c.570 §§1,2; 1987 c.774 §25; 1995 c.704 §1; 1997 c.858 §1; 2007 c.413 §1] Source: Section 30.140 — Certain indemnification provisions in construction agreement void , (accessed May 26, 2025). Notes of Decisions Prohibition against construction agreement requiring person to indemnify another against liability applies to prohibit requiring party to purchase additional insurance covering other party. Walsh Construction Co. v. Mutual of Enumclaw, 189 Or App 400, 76 P3d 164 (2003), aff’d 338 Or 1, 104 P3d 1146 (2005); Security Natl. Ins. Co. v. Sunset Presbyterian Church, 289 Or App 193, 408 P3d 233 (2017) Contract between contractor and subcontractor that includes indemnity provision requiring subcontractor to indemnify contractor for contractor’s negligence is enforceable only to extent that provision also requires subcontractor to indemnify contractor for subcontractor’s negligence. Montara Owners Assn. v. La Noue Development, LLC, 259 Or App 657, 317 P3d 257 (2013), aff’d 357 Or 333, 353 P3d 563 (2015); Security Natl. Ins. Co. v. Sunset Presbyterian Church, 289 Or App 193, 408 P3d 233 (2017) Subcontractor’s duty to defend prime contractor against actions alleging prime contractor’s own negligence is limited …

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