2008 ASA Report Shows Progress.(Report)

Material and Information Courtesy of the American Subcontractors Association. Edited by Christina Fisher.

The American Subcontractors Association's annual policy report card shows that the campaign to limit risk transfer is beginning to pay off in some states, including those in the Mid-Atlantic and Southeast.

Policymakers' understanding of sophisticated risk transfer issues is growing, and that's good news for construction subcontractors, according to The ASA Report: The Policy Environment in the States. ASA's annual evaluation of public policies in the 50 states and the District of Columbia revealed that legislators and courts took new steps in 2008 to limit how contracts or insurance for construction/design services may allocate liabilities. This is a key public policy issue for subcontractors, who are often forced to pay for the costs of jobsite injuries or damage caused by others, even though the subcontractors are faultless.

Legislative/judicial activities in 2008 caused the scores of eight states to change from last year's ASA Report, including New York and Maryland. New York's score changed in part due to new restrictions on risk transfer. ASA members educated policymakers about risk transfer, and other business practices, through ASA's chartered local chapters and state organizations.

ASA's report scores and grades each state in seven policy areas and uses the results to calculate an overall score, grade and rank for each state. New Mexico remains the only state to receive an overall passing grade in The ASA Report. New York and South Carolina are within five points of a passing score of over 60 percent.

The ASA Report -- What Did Your State Pass Or Fail?

Anti-Indemnity And Additional Insured: The report examined the contractual anti-indemnity laws of each state for their restrictions on risk transfer when a loss is the sole or partial fault of the indemnitee. It also reviewed which states close the "additional insured" loophole. Both public and private work was reviewed.