Download Zipped Enrolled WordPerfect HB0219.ZIP
[Introduced][Amended][Status][Bill Documents][Fiscal Note][Bills Directory]
H.B. 219 Enrolled
This bill modifies provisions related to private contractors bonds.
. provides definitions;
. makes the requirement that the owner obtain a bond from the contractor apply only
to commercial contracts;
. increases the contract price amount to $50,000 for requiring the owner to obtain a
bond from the contractor;
. deletes exemption related to the Residence Lien Restriction and Lien Recovery Fund
. addresses the award of attorneys' fees; and
. makes technical changes.
Monies Appropriated in this Bill:
Other Special Clauses:
Utah Code Sections Affected:
14-2-1, as last amended by Chapter 308, Laws of Utah 1994
14-2-2, as last amended by Chapter 308, Laws of Utah 1994
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 14-2-1 is amended to read:
14-2-1. Definitions -- Payment bond required -- Right of action -- Attorneys' fees.
(1) For purposes of this chapter:
(a) "Commercial contract" means a contract for the construction, alteration, or repair of
the following if it is not residential construction:
(i) a building;
(ii) a structure; or
(iii) an improvement upon land that is not associated with a single family detached
commercial contract for the construction, alteration, or repair of any building, structure, or
improvement upon land.
construction, alteration, or repair of [
following if it is not residential construction:
(i) a building;
(ii) a structure; or
(iii) an improvement upon land.
(d) (i) "Residential construction" means the construction, alteration, or repair of:
(A) single family detached housing; or
(B) multifamily attached housing up to and including a fourplex.
(ii) "Residential construction" includes rental housing.
contract exceeding [
building, structure, or improvement upon land is awarded to any contractor, the owner shall
obtain from the contractor a payment bond:
(a) complying with Subsection (3)[
(b) that becomes binding upon the award of the original commercial contract to the
(3) The payment bond shall be:
(a) with a surety or sureties satisfactory to the owner for the protection of all persons
supplying labor, services, equipment, or material in the prosecution of the work provided for in
the commercial contract; and
(b) in a sum equal to the original commercial contract price.
(4) A person shall have a right of action on a payment bond under this chapter for any
unpaid amount due [
work provided for in the commercial contract for which the payment bond is furnished under this
(i) performed the labor or service for which a claim is made; or
(ii) supplied the equipment or material for which the claim is made.
(5) (a) An action under this section shall be brought in a court of competent jurisdiction in
the county where the commercial contract was to be performed and not elsewhere. [
(b) An action under this section is barred if not commenced within one year after the last
day on which the claimant:
(i) performed the labor or service on which the claim is based; or
(ii) supplied the equipment or material on which the claim is based.
(c) The obligee named in the payment bond need not be joined as a party to [
action under this section.
(d) In any action upon a payment bond under this section, the court may award
reasonable attorneys' fees to the prevailing party, which attorneys' fees shall be taxed as costs in
(6) The payment bond shall be exhibited to any interested person upon request.
(7) In any suit upon a payment bond under this chapter, the court shall award reasonable
attorneys' fees to the prevailing party.
Section 2. Section 14-2-2 is amended to read:
14-2-2. Failure of owner to obtain payment bond -- Liability.
bond required under Section 14-2-1 is liable to each person who performed labor or service or
supplied equipment or materials under the commercial contract for the reasonable value of the
labor or service performed or the equipment or materials furnished up to but not exceeding the
commercial contract price.
commenced after the expiration of one year after the day on which:
(a) the last of the labor or service was performed; or
(b) the equipment or material was supplied by the person.
(3) In an action for failure to obtain a bond, the court [
attorneys' fees to the prevailing party. These attorneys' fees shall be taxed as costs in the action.
[Bill Documents][Bills Directory]