1 SB261
2 210723-4
3 By Senator Chambliss
4 RFD: Judiciary
5 First Read: 23-FEB-21
Page 0
 SB261
1 SB261
2
3
4 ENROLLED, An Act,
5 Relating to professions and businesses; to provide
6 certain prohibitions, authorizations, and requirements for
7 contracts for the professional services of a design
8 professional.
9 BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
10 Section 1. (a) As used in this section, the term
11 "design professional" means a person or entity who is licensed
12 or authorized in this state to practice architecture,
13 landscape architecture, surveying, engineering, interior
14 design, or geology.
15 (b) A provision of a contract for the professional
16 services of a design professional entered into after the
17 effective date of this act is void and unenforceable if it
18 does any of the following:
19 (1) Requires the design professional to indemnify or
20 hold harmless a contracting party, an indemnitee, or a third
21 party against liability for damage other than liability for
22 damage to the extent caused by, or in proportion to the extent
23 the design professional participates in resolution of a claim
24 based on, an act of negligence, recklessness, intentional
25 tort, intellectual property infringement, or failure to pay a
Page 1
 SB261
1 subconsultant or supplier that is committed by the design
2 professional or the design professional's agent, consultant
3 under contract, or other entity for which the design
4 professional is legally liable.
5 (2) Requires the design professional to defend a
6 contracting party, an indemnitee, or a third party against a
7 claim arising out of the rendering of or failure to render
8 professional services by the design professional or its agents
9 that is not otherwise covered by the design professional's
10 policy of professional liablity insurance.
11 (3) Requires the design professional to list a party
12 or any other person or entity as an additional insured on the
13 design professional's policy of professional liability
14 insurance.
15 (4) Subjects the design professional to a standard
16 of care different than that provided under subsection (d).
17 (c) Nothing in this act voids a provision of a
18 contract for the professional services of a design
19 professional to the extent that it includes any or all of the
20 following:
21 (1) A requirement that the design professional lists
22 an additional insured on the design professional's general
23 liability insurance policy, automobile liability insurance
24 policy, or both, and provide coverage and any defense provided
25 by those policies.
Page 2
 SB261
1 (2) A provision for the reimbursement of a
2 contracting party's or an indemnitee's reasonable attorney
3 fees, damages, losses, injuries, or other litigation costs in
4 proportion to the design professional's liability, or in
5 proportion to the extent the design professional participates
6 in resolution of a claim also made against the contracting
7 party or indemnitee.
8 (3) A provision or requirement not otherwise in
9 conflict with subsection (b).
10 (d)(1) A contract for the professional services of a
11 design professional shall require the design professional to
12 perform the services with the professional skill and care
13 ordinarily provided by a competent design professional
14 practicing under the same or similar circumstances and
15 professional licenses as expeditiously as is prudent
16 considering the ordinary professional skill and care of a
17 competent design professional.
18 (2) If a standard of care provision in a contract
19 differs from the skill and care required under subdivision
20 (1), the standard of care provided in subdivision (1) shall
21 apply.
22 (e)(1) Nothing in this section prohibits parties to
23 a contract for professional services of a design professional
24 from including and enforcing conditions that relate to the
25 scope, fees, and schedule of a project that is subject to the
Page 3
 SB261
1 contract, so long as the conditions are subject to the
2 requirements of subsection (d).
3 (2) To the extent not otherwise prohibited by law,
4 nothing in this act shall be interpreted to make a public
5 awarding authority responsible for, or to authorize a design
6 professional to include in a contract any provision making the
7 public awarding authority responsible for, the design
8 professional's proportionate liability for negligence in
9 rendering professional services or liability arising out of
10 the design professional's non-professional actions in
11 connection with its performance for or on behalf of the public
12 awarding authority.
13 (f) This section does not affect the validity of any
14 existing insurance contract, workers' compensation, or any
15 agreement or coverage document issued by an insurer.
16 (g) Any provision of law to the contrary
17 notwithstanding, this section may not be interpreted to alter
18 or affect state joint and several liability law or workers'
19 compensation law.
20 Section 2. This act shall become effective on the
21 first day of the third month following its passage and
22 approval by the Governor, or its otherwise becoming law.
Page 4
 SB261
1
2
3
4 President and Presiding Officer of the Senate
5
6 Speaker of the House of Representatives
7 SB261
8 Senate 06-APR-21
9 I hereby certify that the within Act originated in and passed
10 the Senate, as amended.
11
12 Patrick Harris,
13 Secretary.
14
15
16
17 House of Representatives
18 Passed: 20-APR-21
19
20
21 By: Senator Chambliss
Page 5