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Code · Utah · Title 13 — Commerce and Trade · Chapter 8

13-8-4. Obligation to pay under construction contracts -- Rights of parties under contingent payment provisions.

337 words·~2 min read·/ut/title-13/chapter-8/13-8-4

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13-8-4. Obligation to pay under construction contracts -- Rights of parties under contingent payment provisions.
(1)For purposes of this section:
(a)"Construction contract" means a contract or agreement to provide services, labor, or materials for the design, construction, installation, or repair of an improvement to real property located in Utah.
(b)"Contingent payment contract" means a construction contract between a contractor and a subcontractor that makes a payment from the contractor to the subcontractor contingent on the contractor receiving a corresponding payment from any other public or private party, including a private owner.
(c)"Contractor" means a person who is or may be awarded a contract for the construction, alteration, or repair of any building, structure, or improvement to real property.
(d)"Subcontractor" means any person engaged by a contractor to provide services, labor, or materials for the design, construction, installation, or repair of an improvement to real property and includes a trade contractor or specialty contractor.
(2)A party to a construction contract shall make all scheduled payments under the terms of the construction contract.
(a)The existence of a contingent payment contract is not a defense to a claim to enforce a preconstruction or construction lien under Title 38, Chapter 1a, Preconstruction and Construction Liens .
(b)Subsection
(3)does not apply to contracts for private construction work for the building, improvement, repair, or remodeling of residential property consisting of four units or less.
(4)If a construction contract is a contingent payment contract:
(a)the subcontractor may request from the contractor the financial information that the contractor has received from the public or private party regarding:
(i)the project financing; and
(ii)the public or private party; and
(b)if information is requested by the subcontractor under Subsection (4)(a) , the contractor shall provide the information prior to the subcontractor signing the construction contract between the contractor and the subcontractor.
(5)This section applies to a contract executed on or after May 5, 1997.
Amended by Chapter 278 , 2012 General Session
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