S.B. 3

1

CONSTRUCTION CONTRACTORS
2 1997 GENERAL SESSION
3 STATE OF UTAH
4 Sponsor: L. Steven Poulton
5 AN ACT RELATING TO COMMERCE AND TRADE; MAKING VOID CERTAIN
6 PROVISIONS OF AGREEMENTS REQUIRING DISPUTES ARISING UNDER AN
7 AGREEMENT TO BE RESOLVED IN A FORUM OUTSIDE UTAH.
8 This act affects sections of Utah Code Annotated 1953 as follows:
9 ENACTS:
10 13-8-3, Utah Code Annotated 1953
11 Be it enacted by the Legislature of the state of Utah:
12 Section 1. Section 13-8-3 is enacted to read:
13 13-8-3. Construction contracts and purchase orders -- Venue.
14 (1) As used in this section, "construction agreement" means a construction contract,
15 subcontract, or purchase order for the design, construction, installation, or repair of an
16 improvement to real property between a:
17 (a) construction manager;
18 (b) general contractor;
19 (c) subcontractor;
20 (d) sub-subcontractor;
21 (e) supplier; or
22 (f) any combination of the persons described under Subsections (1)(a) through (e).
23 (2) A provision in a construction agreement requiring a dispute arising under the
24 agreement to be resolved in a forum outside of this state is void and unenforceable as against the
25 public policy of this state if:
26 (a) one of the parties to the agreement is domiciled in this state; and
27 (b) work to be done and the equipment and materials to be supplied under the agreement

1 involves a construction project in this state.
2 (3) This section applies to a construction agreement executed, renewed, or materially
3 modified on or after May 5, 1997.




Legislative Review Note
as of 6-28-96 3:52 PM

A limited legal review of this bill raises no obvious constitutional or statutory concerns.

Office of Legislative Research and General Counsel

Committee Note

The Business, Labor, and Economic Development Interim Committee recommended this bill.

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