As we approach the new year, construction contractors and subcontractors who deal in commercial or public building projects should be aware of the changes brought about by California Senate Bill 474. SB 474 was signed into law in 2011, but will come into effect on January first. It specifies that construction contracts with a subcontractor which indemnify another party to the contract for liability, specifically in cases in which there is active negligence or willful misconduct, are invalid. This change only applies to agreements which are executed or amended on or after January first.

Notably, these changes do not apply to architects or other design professionals.

In other news, all of us here at Edward C. Ip and Associates wish you happy holidays and a prosperous and joyful new year.