14-2-1 - Definitions -- Payment bond required -- Right of action -- Attorneys' fees.
14-2-1. Definitions -- Payment bond required -- Right of action -- Attorneys' fees.
(1) For purposes of this chapter:
(a) "Commercial contract" means a contract for the construction, alteration, or repair ofthe following if it is not residential construction:
(i) a building;
(ii) a structure; or
(iii) an improvement upon land that is not associated with a single family detachedhousing.
(b) "Contractor" means any person who is or may be awarded an original commercialcontract for the construction, alteration, or repair of any building, structure, or improvement uponland.
(c) "Owner" means any person contracting with the original contractor for construction,alteration, or repair of the following if it is not residential construction:
(i) a building;
(ii) a structure; or
(iii) an improvement upon land.
(d) (i) "Residential construction" means the construction, alteration, or repair of:
(A) single family detached housing; or
(B) multifamily attached housing up to and including a fourplex.
(ii) "Residential construction" includes rental housing.
(2) Before any original commercial contract exceeding $50,000 in amount for theconstruction, alteration, or repair of any building, structure, or improvement upon land isawarded to any contractor, the owner shall obtain from the contractor a payment bond:
(a) complying with Subsection (3); and
(b) that becomes binding upon the award of the original commercial contract to thecontractor.
(3) The payment bond shall be:
(a) with a surety or sureties satisfactory to the owner for the protection of all personssupplying labor, services, equipment, or material in the prosecution of the work provided for inthe commercial contract; and
(b) in a sum equal to the original commercial contract price.
(4) A person shall have a right of action on a payment bond under this chapter for anyunpaid amount due that person if that person:
(a) has furnished labor, services, equipment, or material in the prosecution of the workprovided for in the commercial contract for which the payment bond is furnished under thischapter; and
(b) has not been paid in full within 90 days after the last day on which that person:
(i) performed the labor or service for which a claim is made; or
(ii) supplied the equipment or material for which the claim is made.
(5) (a) An action under this section shall be brought in a court of competent jurisdictionin the county where the commercial contract was to be performed and not elsewhere.
(b) An action under this section is barred if not commenced within one year after the lastday on which the claimant:
(i) performed the labor or service on which the claim is based; or
(ii) supplied the equipment or material on which the claim is based.
(c) The obligee named in the payment bond need not be joined as a party to an actionunder this section.
(d) In any action upon a payment bond under this section, the court may awardreasonable attorneys' fees to the prevailing party, which attorneys' fees shall be taxed as costs inthe action.
(6) The payment bond shall be exhibited to any interested person upon request.
(7) In any suit upon a payment bond under this chapter, the court shall award reasonableattorneys' fees to the prevailing party.
Amended by Chapter 111, 2004 General Session