The bill establishes new provisions regarding contractor liability for the Florida Department of Transportation. It introduces a new subsection to section 337.195 of the Florida Statutes, which designates contractors as agents of the state when acting within the scope of their contract. This designation is significant as it holds contractors accountable for their actions while performing their duties under the contract.

Additionally, the bill mandates that contract documents must include indemnification clauses that protect the Department of Transportation from liabilities arising from the negligence of the contractor or its employees. This includes covering reasonable attorney fees incurred due to such negligence, up to the limits specified in the law. The effective date for this legislation is set for July 1, 2026.