Title 13 Chapter 8 Section 4

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Index	Utah Code
Title 13	Commerce and Trade
Chapter 8	Unenforceable Agreements
Section 4	Obligation to pay under construction contracts -- Rights of parties under contingent payment provisions.

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.

(3)

(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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