Penalties for using an illegal construction contract in Utah:
- Retainage that doesn't comply with Utah Code Annotated § 13-8-5 subjects the owner or contractor to a 2% per month penalty plus attorney fees.
- Failure to obtain a payment bond as required by Utah Code Annotated § 14-2-2.makes the owner liable for all labor, materials and equipment.
- Any agreement by a subcontractor to indemnify a general contractor is void under Utah Code Annotated § 13-8-1.
- Any attempt to waive lien rights in a construction contract is void under Utah Code Annotated § 38-1-29.
- Omission of federal truth in lending disclosures required by 15 United States Code § 1638 makes the creditor liable for both the overcharge and the debtor's attorney fees.
- Omission of disclosures required by 12 Code of Federal Regulations § 226.15 extends the right of rescission to three years (rather than three days).
- Omission of insulation disclosures required by 16 Code of Federal Regulation § 460 can result in an $11,000 fine.
The contracts linked below will help Utah contractors avoid these penalties by complying with state and federal law.
The contracts linked below also comply with current Utah and federal court decisions.
The contracts linked below comply with the following Utah and federal laws:
- Choice of law -- Utah Code Annotated § 13-8-3
- Differing site conditions -- Utah Administrative Code § R33-5-450
- Excavation -- Utah Code Annotated § 54-8a
- Indemnification -- Utah Code Annotated Section 13-8-1
- Insulation disclosure -- 16 Code of Federal Regulation § 460
- Interest rate -- Utah Code Annotated § 15-1-1
- No lien contracts -- Utah Code Annotated § 38-1-29
- Payment bond -- Utah Code Annotated § 14-2-1, § 14-2-2 and § 14-2-5
- Payment of subcontractors – Utah Code Annotated § 58-55-603
- Retainage -- Utah Code Annotated § 13-8-5
- Right of rescission -- 12 Code of Federal Regulations § 226.15
- Statute of limitations -- Utah Code Annotated § 78B-2-309 and § 78B-2-225
- Truth in lending -- 15 United States Code § 1638
Return to Penalties for Illegal Contracts in Utah.
The contracts linked below conform with current Utah and federal court decisions.
The contracts linked below comply with the following Utah and federal court decisions:
- Attorney fees -- Maynard v. Wharton, 912 P.2d 446 (1996)
- Choice of law -- Jacobsen Construction Co. v. Teton Builders, 2005 UT 4 (2005)
- Consequential damages – Billings v. Union Bankers Ins. Co., 918 P.2d 461 (1996)
- Contractor claims for delay -- Melka Marine Inc. v United States, 187 F.3d 1370, 1999
- Disclaimer by owner -- Elder v. Clawson, 14 Utah 2d 379 (1963)
- Extra work – Highland Construction Co. v. Union Pacific Railroad, 683 P.2d 1042 (1984)
- Latent defects -- Commercial Bank v. Spanish Fork S. Irrigation Co., 107 Utah 279 (1944)
- Liquidated damages -- Reliance Insurance Co. v. Utah Department of Transportation, 858 P.2d 1363, 1993
- No-damages-for-delay -- Allen-Howe Specialties Corp. v. U. S. Construction, 611 P.2d 705 (1980)
- Payment -- Zions First National Bank, N.A. v. Christiansen Bros., 66 F.3d 1560 (1995)
- Reliance by contractor -- Maack v. Resource Design & Construction, 875 P.2d 570 (1994)
- Site inspection – Jack B. Parson Construction Co. v. State, 725 P.2d 614 (1986)
- Statute of limitations -- Clark v. Lund, 55 Utah 284 (1919)
- Waiver of claim -- Campbell Building Company v. State Road Commissioner, 95 Utah 242 (1937)
- Warranty – Russ v. Woodside Homes, 905 P.2d 901 (1995)
- Workers' compensation -- Freund v. Utah Power & Light Co., 793 P.2d 362, 1990
Return to Penalties for Illegal Contracts in Utah.
Return to construction contract laws in Utah.
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