S.B. 224

1

CONSTRUCTION CONTRACT AMENDMENTS
2 2010 GENERAL SESSION
3 STATE OF UTAH
4 Chief Sponsor: Curtis S. Bramble
5 House Sponsor: ____________
6
7 LONG TITLE
8 General Description:
9 This bill enacts a provision relating to construction contracts.
10 Highlighted Provisions:
11 This bill:
12 . declares void and against public policy nonreciprocal construction contracts that
13 provide for only one party to waive, relinquish, or limit certain rights.
14 Monies Appropriated in this Bill:
15 None
16 Other Special Clauses:
17 None
18 Utah Code Sections Affected:
19 ENACTS:
20 13-8-6, Utah Code Annotated 1953
21
22 Be it enacted by the Legislature of the state of Utah:
23 Section 1. Section 13-8-6 is enacted to read:
24 13-8-6. Construction contracts with nonreciprocal provisions relating to rights.
25 (1) As used in this section:
26 (a) "Construction contract" means a written agreement providing for work in the
27 construction trade for a nonresidential commercial or industrial project.

28 (b) "Construction trade" has the same meaning as defined in Section 58-55-102 .
29 (c) "Contractor":
30 (i) means a person who, for compensation other than wages as an employee, undertakes
31 any work in a construction trade; and
32 (ii) includes:
33 (A) a person engaged to perform maintenance who regularly engages in work in a
34 construction trade; and
35 (B) a construction manager who performs management and advisory services on a
36 construction project for a fee.
37 (d) "Original contractor" has the same meaning as defined in Section 38-1-2 .
38 (e) "Owner":
39 (i) means a person who holds legal or equitable title or interest in property that is the
40 subject of a construction contract; and
41 (ii) does not include a construction lender, unless the lender has an ownership interest
42 in the property other than solely as a construction lender.
43 (f) "Public agency" means a state agency or political subdivision of the state that enters
44 into a construction contract for an improvement on public property.
45 (g) "Subcontractor" has the same meaning as defined in Section 38-1-2 .
46 (2) (a) This section applies to a construction contract entered into on or after July 1,
47 2010, between:
48 (i) an owner or a public agency and an original contractor;
49 (ii) an original contractor and a subcontractor; and
50 (iii) two or more subcontractors.
51 (b) If a construction contract is for a project that is part residential and part
52 nonresidential, this section applies to the portion of the construction contract that is
53 nonresidential, as determined pro rata based on the percentage of the total square footage of the
54 project that is nonresidential.
55 (3) A provision in a construction contract to which this section applies is against public
56 policy and void if under the provision:
57 (a) a party waives, relinquishes, or limits the party's claims, remedies, or method of
58 proving damages for breach of contract; and

59 (b) another party to the contract does not in the same manner waive, relinquish, or limit
60 the party's claims, remedies, or method of proving damages for breach of contract.




Legislative Review Note
as of 2-22-10 6:09 AM

Office of Legislative Research and General Counsel