(1)  An assignment, attachment, or garnishment of or encumbrance or execution levy on money that an owner owes to an original contractor is not valid as against a subcontractor‘s preconstruction or construction lien.

contract signature

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Terms Used In Utah Code 38-1a-303

  • Attachment: A procedure by which a person's property is seized to pay judgments levied by the court.
  • Construction lien: means a lien under this chapter for construction work. See Utah Code 38-1a-102
  • Counterclaim: A claim that a defendant makes against a plaintiff.
  • Garnishment: Generally, garnishment is a court proceeding in which a creditor asks a court to order a third party who owes money to the debtor or otherwise holds assets belonging to the debtor to turn over to the creditor any of the debtor
  • Lien: A claim against real or personal property in satisfaction of a debt.
  • Original contractor: means a person, including an owner-builder, that contracts with an owner to provide preconstruction service or construction work. See Utah Code 38-1a-102
  • Owner: means a person who possesses an interest in a project property and contracts with an original contractor for preconstruction service or construction work. See Utah Code 38-1a-102
  • Subcontractor: means a person that contracts to provide preconstruction service or construction work to:
(a) a person other than the owner; or
(b) the owner, if the owner is an owner-builder. See Utah Code 38-1a-102
(2)  An assignment, attachment, or garnishment of or encumbrance or execution levy on money that an original contractor owes to a subcontractor is not valid as against a lien of a laborer employed by the day or piece.

(3)  The preconstruction or construction lien of a subcontractor may not be diminished, impaired, or otherwise affected by:

(a)  a payment, whether in cash or in-kind, to the original contractor or another subcontractor;

(b)  a debt owed by the original contractor to the owner;

(c)  a debt owed by another subcontractor to the original contractor or to a third subcontractor; or

(d)  an offset or counterclaim in favor of the owner against the original contractor, or in favor of the original contractor against another subcontractor, or in favor of another subcontractor against a third subcontractor.

Enacted by Chapter 278, 2012 General Session

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