Utah Code § 58-55-603

Payment to subcontractors and suppliers

Redline — January 1, 2025 → current.View current text →

Current — January 1, 2027

As of January 1, 2025

(1) When a contractor receives any construction funds from an owner or another contractor for work performed and billed, the contractor receiving funds shall pay each of that contractor's subcontractors and suppliers in proportion to the percentage of the work they performed under that billing, unless otherwise agreed by contract.

(2) If, under this section and without reasonable cause, or unless otherwise agreed by contract, the contractor fails to pay for work performed by subcontractors or suppliers within 30 consecutive days after receiving construction funds from the owner or another contractor for work performed and billed, or after the last day payment is due under the terms of the billing, whichever is later, the contractor receiving funds 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 is due, and reasonable costs of any collection and attorney fees.

(3) When a subcontractor receives any construction payment under this section, Subsections (1) and (2) apply to that subcontractor.

A person engages in unprofessional conduct if the person:

(1) fails to establish, maintain, or demonstrate financial responsibility in accordance with Section 58-55-205, while holding a contractor license under Part 2, Contractors;

(2) disregards or violates, through gross negligence or a pattern of negligence:

(a) state or local building or construction laws;

(b) safety and labor laws applicable to a project;

(d) workers' compensation insurance laws applicable to a project;

(e) laws governing employee state and federal income tax withholdings, unemployment tax, Social Security payroll tax, or other required withholdings; or

(f) state or federal reporting, notification, and filing laws;

(3) commits, causes, or directs a willful, fraudulent, or deceitful act that causes material injury to another person;

(4) commits a contract violation that threatens or potentially threatens the public health, safety, or welfare, including when the person:

(a) willfully, deliberately, or with gross negligence disregards plans or specifications, abandons a project, or fails to complete a project without obtaining consent from the owner, the owner's authorized representative, or any other person entitled to completion under the contract;

(b) fails to deposit funds for the benefit of an employee;

(c) fails to maintain health insurance benefits required by a written contract, unless the person provides the employee with written notice at least 45 days before canceling or reducing a health insurance benefit;

(d) fails to reimburse the Residence Lien Recovery Fund as required under Section 38-11-207;

(e) fails to provide information required under Section 38-11-108; or

(f) willfully or deliberately misrepresents or omits a material fact when applying to claim recovery from the Residence Lien Recovery Fund under Section 38-11-204;

(5) fails to comply with operating standards described in Section 58-55-502;

(6) as an unincorporated entity, fails to provide workers' compensation coverage as required under Title 34A, Chapter 2, Workers' Compensation Act, and Title 34A, Chapter 3, Utah Occupational Disease Act, for an individual who engages or will engage in a construction trade in this state for the entity;

(7) fails to continuously maintain insurance and registration as required under Section 58-55-204; or

(8) fails to comply with Section 58-55-107.

(9) fails to comply with Section 58-55-213.

Official source: Utah State Legislature. Reproduced from public-domain Utah statutes; confirm against the official source for the current text. Not legal advice.