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ACEC-CO Sponsoring Legislation for Fairness in Contracting for A/E Firms

05-Feb-2015 to 05-Feb-2015

On Monday, February 2, HB15-1197 "Concerning Limitations on Indemnity Obligations in Public Construction Contracts" was introduced by ACEC Colorado to the Colorado legislature. It addresses uninsurable contract language in public contracts that has been a long time challenge for design professionals. Essentially, design professionals are being asked to defend public entities against third party claims before there has been any determination that the design professional has committed error.

Design professionals' professional liability insurance only covers legal costs to the extent caused by the negligent errors and omissions of the design professional. Defense costs that are incurred prior to finding out if the design professional is negligent will come out of the design professional firms' pockets. Rep. Jack Tate (R, Centennial) and Sen. Cheri Jahn (R, Jefferson County) have agreed to sponsor the bill.

Contact ACEC to find out more about the bill and how you can participate in the legal process.