Indemnification Provisions in Florida Construction Contracts
Florida imposes state specific requirements with respect to indemnification provisions utilized in Florida construction contracts. These requirements are set forth in Section 725.05, Florida Statutes, and include the following:
- The indemnification clause must contain a monetary limitation on the extent of the indemnification that bears a reasonable commercial relationship to the contract;
- The indemnification provision must form a part of the specifications for the project; and
- The indemnification provision cannot provide for the following:
(i) the indemnification of claims other than claims caused in whole or in part by the party giving the indemnity or their agents and lower tier contractors or suppliers, or
(ii) the indemnifications of a party from gross negligence or intentional misconduct.
Failure to adhere to these statutory requirements can compromise the enforceability of indemnification provisions utilized in a construction contract and eliminate the contractual protections a contractor believes it possesses. Reference to Florida legal requirements should be made before contracting for work in Florida.
October 26, 2016 Share This