The bill amends Arkansas Code 4-56-104 to establish new standards regarding unenforceable provisions in construction contracts. It introduces a requirement for licensed engineers or registered architects to perform their services with a level of professional skill and care that is consistent with that of a competent professional in the state. If a construction contract specifies a different standard of care, that provision will be deemed void and unenforceable, reverting to the standard outlined in the new subsections.

Additionally, the bill declares it against public policy for parties in a construction agreement to require one another to be named as additional insureds on professional liability or workers' compensation policies. Any such provisions in construction contracts will also be considered void and unenforceable. These new regulations will apply to construction contracts entered into on or after September 1, 2023.

Statutes affected:
HB 1581: 4-56-104