September 20, 2012 Articles

New Texas Anti-Indemnity Law May Affect More Than the Obvious

Under the new law, construction contracts are prohibited from requiring a subcontractor to defend or indemnify an owner or general contractor for the latter's own negligence.

By Kara Stauffer Philbin – September 20, 2012

Indemnity provisions frequently play a key role in managing the risks inherent in construction contracts, including those in the energy industry. In reality, the amount of protection provided by an indemnity provision is a function not only of the provision itself, but also the law under which the provision will be interpreted. Under the new Texas Anti-Indemnity Law, effective January 1, 2012, construction contracts are prohibited from requiring a subcontractor to defend or indemnify an owner or general contractor for the latter’s own negligence.


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