MN SF388

Excludes "design" from the definition of building and construction contracts and adds professional services contracts (provided by licensed professionals) under the statute's scope.

Expands the definition of indemnification agreements to include "defend" and "economic loss" in addition to hold harmless provisions for bodily injury and physical damage.

Makes indemnification agreements in building and construction or professional services contracts unenforceable except when injury/damage results from the promisor's negligent or wrongful act, or when indemnifying for strict environmental liability.

Prohibits requirements in professional services contracts for applying another state's laws, pursuing disputes outside Minnesota, waiving mechanics liens before payment, and makes prompt payment to subcontractors mandatory within ten days with 1.5% monthly interest penalties on late payments.

Effective August 1, 2013, for contracts and agreements entered into on or after that date.