Title 58 Occupations and Professions Chapter 55 Utah Construction Trades Licensing Act Section 603 Payment to subcontractors and suppliers.
58-55-603.Payment to subcontractors and suppliers.
(1) When a contractor receives any construction funds from an owner or another
contractor for work performed and billed, he shall pay each of his subcontractors and suppliers in
proportion to the percentage of the work they performed under that billing, unless otherwise
agreed by contract.
(2) If, under this section and without reasonable cause, or unless otherwise agreed by
contract, the contractor fails to pay for work performed by his subcontractors or suppliers within
30 consecutive days after receiving construction funds from the owner or another contractor for
work performed and billed, or after the last day payment is due under the terms of the billing,
whichever is later, he shall pay to the subcontractor or supplier, in addition to the payment,
interest in the amount of 1% per month of the amount due, beginning on the day after payment is
due, and reasonable costs of any collection and attorney's fees.
(3) When a subcontractor receives any construction payment under this section,
Subsections (1) and (2) apply to that subcontractor.
Renumbered and Amended by Chapter 181, 1994 General Session
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