58-55-603 - Payment to subcontractors and suppliers. - Utah Statutes

58-55-603. Payment to subcontractors and suppliers.
(1) When a contractor receives any construction funds from an owner or anothercontractor for work performed and billed, he shall pay each of his subcontractors and suppliers inproportion to the percentage of the work they performed under that billing, unless otherwiseagreed by contract.
(2) If, under this section and without reasonable cause, or unless otherwise agreed bycontract, the contractor fails to pay for work performed by his subcontractors or suppliers within30 consecutive days after receiving construction funds from the owner or another contractor forwork performed and billed, or after the last day payment is due under the terms of the billing,whichever is later, he shall pay to the subcontractor or supplier, in addition to the payment,interest in the amount of 1% per month of the amount due, beginning on the day after payment isdue, and reasonable costs of any collection and attorney's fees.
(3) When a subcontractor receives any construction payment under this section,Subsections (1) and (2) apply to that subcontractor.

Renumbered and Amended by Chapter 181, 1994 General Session