Utah Contractor Payment Laws

Utah Contractor Payment Laws: What You Need to Know

If you’re a contractor or a property owner in Utah, it’s essential to understand the state’s contractor payment laws. These laws govern how contractors are paid for their work, and what rights they have if payments are delayed or withheld.

Here’s what you need to know about Utah contractor payment laws:

Prompt Payment

The prompt payment law in Utah requires property owners to pay contractors on time. If you’re a property owner, you must pay contractors within 30 days of receiving an invoice for completed work. If you fail to make a payment within this time frame, you may be liable for interest, attorney fees, and other costs.

Retainage

Retainage is a percentage of the contract amount that is withheld until the project is complete. In Utah, the maximum retainage that can be withheld from a contractor is 5%. Contractors are entitled to receive retainage payments in installments as the project progresses.

Mechanic’s Lien

A mechanic’s lien is a legal claim that contractors can file against a property owner to secure payment for their work. In Utah, contractors have 180 days from the last day they worked on a project to file a mechanic’s lien. Property owners have 90 days to dispute the lien, after which the contractor may file a lawsuit to enforce the lien.

Contractor Recovery Fund

The Contractor Recovery Fund is a fund that provides financial assistance to consumers who have suffered losses due to a contractor’s dishonest or incompetent business practices. Contractors in Utah are required to contribute to the fund, and consumers can file a claim for up to $50,000 in damages.

Contract Requirements

Utah law requires that all contracts between property owners and contractors be in writing. The contract must include a description of the work to be performed, the payment terms, the project schedule, and any warranties or guarantees.

Conclusion

Utah contractor payment laws are designed to protect both contractors and property owners. By understanding these laws, you can ensure that you are paid fairly and on time for your work, and that your project runs smoothly. If you have any questions or concerns about Utah contractor payment laws, be sure to consult with a qualified attorney.