Pennsylvania House passes bill to limit contractor liability in construction contracts

Marla A. Brown, Pennsylvania State Representative for 9th District
Marla A. Brown, Pennsylvania State Representative for 9th District
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Rep. Marla Brown announced on Apr. 15 that legislation aimed at protecting construction contractors from unfair liability provisions has passed the Pennsylvania House and is moving to the Senate for further consideration.

The bill seeks to address concerns within Pennsylvania’s construction industry, where contractors are sometimes required to accept responsibility for damages caused by another party’s negligence as a condition of their contracts. Supporters say this practice can negatively affect contractors and damage their business reputations.

“Our contractors should never be forced to accept liability for another party’s negligence,” said Brown. “House Bill 1541 is about fairness and accountability, ensuring construction contracts place responsibility where it actually belongs. With 45 states already adopting similar protections, this is an important step toward modernizing Pennsylvania law.”

If enacted, the legislation would make void any new contract provisions that require one party to indemnify or be held responsible for damages resulting from another party’s negligence. The aim is to foster a more balanced and transparent contracting environment throughout the state.

Brown said she was approached about this issue by Bruce and Merrilees of New Castle, a provider of electrical, technology, and specialty services since 1948 that is part of ArchKey Solutions.

The bill would bring Pennsylvania in line with most other states that have adopted anti-indemnity statutes in construction contracts. Lawmakers say this could help ensure clearer standards and fairer risk allocation across the industry.



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