MN SF56

Amends Minnesota Statutes to regulate indemnification agreements in building and construction contracts and professional services contracts.

Makes indemnification agreements unenforceable unless the injury or damage is attributable to the promisor's negligent or wrongful act, or involves strict liability under environmental laws with owner agreement.

Voids provisions in building and construction or professional services contracts that require application of another state's laws or out-of-state dispute resolution for work performed in Minnesota.

Prohibits contractors, subcontractors, or material suppliers from waiving mechanics lien rights or payment bond claims before receiving payment for labor or materials.

Requires prime contractors and subcontractors to pay subcontractors and material suppliers within 10 days of receipt of payment, with 1-1/2 percent monthly interest on late unpaid amounts and a $10 minimum penalty.

Establishes monthly progress payment requirements for building and construction contracts and limits retainage to 5 percent unless the contract provides otherwise.

Effective August 1, 2009, for contracts and agreements entered into on or after that date.