When a contractor receives any construction funds from an owner or another contractor for work performed and billed, he shall pay each of his subcontractors and suppliers in proportion to the percentage of the work they performed under that billing, unless otherwise agreed by contract.
Terms Used In Utah Code 58-55-603
Contract: A legal written agreement that becomes binding when signed.
Contractor: means any person who for compensation other than wages as an employee undertakes any work in the construction, plumbing, or electrical trade for which licensure is required under this chapter and includes:
(i)
a person who builds any structure on the person's own property for the purpose of sale or who builds any structure intended for public use on the person's own property;
(ii)
any person who represents that the person is a contractor, or will perform a service described in this Subsection (17)by advertising on a website or social media, or any other means;
(iii)
any person engaged as a maintenance person, other than an employee, who regularly engages in activities set forth under the definition of "construction trade";
(iv)
any person engaged in, or offering to engage in, any construction trade for which licensure is required under this chapter; or
(v)
a construction manager, construction consultant, construction assistant, or any other person who, for a fee:
(A)
performs or offers to perform construction consulting;
(B)
performs or offers to perform management of construction subcontractors;
(C)
provides or offers to provide a list of subcontractors or suppliers; or
(D)
provides or offers to provide management or counseling services on a construction project. See Utah Code 58-55-102
Month: means a calendar month, unless otherwise expressed. See Utah Code 68-3-12.5
(2)
If, under this section and without reasonable cause, or unless otherwise agreed by contract, the contractor fails to pay for work performed by his 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, 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 is due, 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
