Opinion ID: 891638
Heading Depth: 3
Heading Rank: 2

Heading: The Relevant Statutory Provisions

Text: {8} The resolution of this case hinges on the interpretation and application of a statutory bar to indemnity clauses contained in construction contracts: A provision in a construction contract that requires one party to the contract to indemnify, hold harmless, insure or defend the other party to the contract, including the other party's employees or agents, against liability, claims, damages, losses or expenses, including attorney fees, arising out of bodily injury to persons or damage to property caused by or resulting from, in whole or in part, the negligence, act or omission of the indemnitee, its officers, employees or agents, is void, unenforceable and against the public policy of the state. Section 56-7-1(A) (emphasis added). The Legislature has provided further guidance by defining the statutory term construction contract: [C]onstruction contract means a public, private, foreign or domestic contract or agreement relating to construction, alteration, repair or maintenance of any real property in New Mexico and includes agreements for architectural services, demolition, design services, development, engineering services, excavation or other improvement to real property, including buildings, shafts, wells and structures, whether on, above or under real property. Section 56-7-1(E) (emphasis added). In order to answer the question certified to us, we therefore must determine whether a contract for rental of equipment to be used in a construction project is a contract or agreement relating to construction within the scope of the statute. [1]