13-8-4 - Obligation to pay under construction contracts -- Rights of parties under contingent payment provisions. - Utah Statutes

13-8-4. Obligation to pay under construction contracts -- Rights of parties undercontingent payment provisions.
(1) For purposes of this section:
(a) "Construction contract" means a contract or agreement to provide services, labor, ormaterials for the design, construction, installation, or repair of an improvement to real propertylocated in Utah.
(b) "Contingent payment contract" means a construction contract between a contractorand a subcontractor that makes a payment from the contractor to the subcontractor contingent onthe 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 theconstruction, 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 propertyand includes a trade contractor or specialty contractor.
(2) A party to a construction contract shall make all scheduled payments under the termsof the construction contract.
(3) (a) The existence of a contingent payment contract is not a defense to a claim toenforce a mechanics' lien filed under Title 38, Chapter 1, Mechanics' Liens.
(b) Subsection (3) does not apply to contracts for private construction work for thebuilding, improvement, repair, or remodeling of residential property consisting of four units orless.
(4) If a construction contract is a contingent payment contract:
(a) the subcontractor may request from the contractor the financial information that thecontractor 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 contractorshall provide the information prior to the subcontractor signing the construction contract betweenthe contractor and the subcontractor.
(5) This section applies to a contract executed on or after May 5, 1997.

Enacted by Chapter 86, 1997 General Session