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Calderon’s “Responsible Construction” Bill Passes Assembly On A 73-0 Vote.
SACRAMENTO, California – Members of the California State Assembly
unanimously approved Assemblyman Ron Calderon's (D-Montebello) Construction
Defect bill today with a 73-0 vote. AB 758, which would make subcontractors
responsible and liable for only their scope of work, now moves to the
Senate for consideration.
AB 758 would eliminate the need for subcontractors to buy indemnity insurance that only protects the general contractor from losses and claims even though the general contractor was solely negligent.
"In a litigious society like ours there is an appreciation for the need to protect yourself from unforeseeable problems that may arise during construction," said Assemblyman Calderon. "But after three-years of study on this subject, it became apparent that making subcontractors obtain excessive and unnecessary indemnity agreements to protect only the general contractor is redundant and unfounded. Subcontractors only need to insure and guarantee their work product and not that of others."
"Nothing in this bill will weaken a consumer's right to seek restitutions from the general or subcontractor for poor craftsmanship," said Assemblyman Calderon. "The goal of the bill is to reduce the burden of cost for subcontractors in defending claims against work they had not performed. In doing so the cost of building the home would drop as well."
The costs subcontractors incur when obtaining these expensive indemnity agreements have traditionally been passed on to the home buyer. Reducing the costs involved with building of the homes will lower the overall price new homes are sold at.
AB 758 was passed on strong bipartisan support, which is likely to continue as it works its way through the state's Senate. "The skyrocketing cost of liability insurance has put homebuilding contractors out of business, and has also helped housing costs to rise far beyond the reach of most Californians. The Assembly's passage of AB 758 today is a small but important step forward in making the many important reforms needed to make homes affordable once again in California," stated Assemblyman Ray Haynes (R-Riverside), lead co-author of the bill.
last updated: August 26, 2005
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