Common Subcontract Indemnification Provision Clauses and Nevada Limitations
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Understand the different types of indemnity provisions and what the new changes mean for you.Learn about the differences in types of indemnity provisions typically found in construction contracts and the benefits and limitations of these provisions. This topic will help you understand the limitations on indemnity provisions that are provided by recent Nevada judicial decisions. You will also learn about various techniques and strategies for enforcing indemnity provisions in construction contracts.
AuthorsBryan M. Gragg, Snell & Wilmer L.L.P. Mark D. Johnson, Snell & Wilmer L.L.P.
Indemnity Provisions Commonly Found in Construction Contracts Between Owners and General Contractors and in Contracts Between General Contractors and Subcontractors
• Indemnity Provisions Usually Require the General Contractor to Reimburse the Owner for Any Loss From a Claim or Claims Brought by a Third-Party Arising out of Work Performed by the General Contractor
• Indemnity Provisions Between General Contractors and Subcontractors Generally Require the Subcontractor to Reimburse the General Contractor for Any Loss From a Claim or Claims Arising out of Work Performed by the Subcontractor
• Indemnity Provisions May Impose a Duty to Defend the Indemnified Party
Types of Indemnity and Their Effect on the Contractual Relationship
• "Type I" Indemnification of a General Contractor by a Subcontractor
• "Type II" Indemnity Agreements, Which Allow a Party to Be Indemnified for Another Party's Passive, as Opposed to Active, Negligence
• "Type III" Indemnity Agreements, Which Limit Indemnification Solely to Those Circumstances Created by the Contractor Himself
Historically, Nevada Has Not Recognized Any Limitation on Contractual Indemnity Provisions
• Anti-Indemnity Statutes Common in Other States Have Not yet Reached Nevada
• Recent Case Law Has Developed Specific Limits on the Language of a Type 1 Indemnity Agreement in Order to Make That Obligation Enforceable