AZ SB1338

Amends Arizona Revised Statutes § 32-1159 to prohibit indemnification clauses in private construction and architect-engineer contracts that require one party to indemnify another for negligence, except when limited to negligence caused by the indemnifying party, its employees, or agents.

Allows indemnification requirements only to the extent caused by the negligence, recklessness, or intentional wrongful conduct of the contractor, subcontractor, or architect/engineer professional performing the work.

Prohibits contractors from defending or holding harmless contracting agents from any liability or damages beyond what is caused by the contractor's own negligence, recklessness, or intentional misconduct.

Permits full indemnification in limited circumstances where a contractor enters onto another's property as an accommodation to perform construction work for third parties.

Applies to all private construction and architect-engineer contracts entered into or amended on or after the effective date; does not apply to state contracts, agricultural districts, surety bonds, or insurance agreements between insurers and named insureds.