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What private projects are required to be bonded?

Non-residential projects where the contract for construction exceeds $50,000. Non-residential construction is anything that is not residential construction. Residential construction is:

  1. Single family detached housing
  2. Multifamily attached housing up to a duplex
  3. Rental housing

Who may make a claim on the bond?

Any person who furnished:

  1. labor
  2. services
  3. equipment, or
  4. material, under the contract with the owner.

What must a Notice of Claim include?

Utah does not have a specific requirement for a claim to be sent before filing a lawsuit against the bond. However, if there is no bond, then a claim can be made against the owner. Since most payment bonds contain specific notice requirements, a Notice of Claim should be sent that complies with Utah's public failure to post a bond requirements and the Miller Act (Federal Payment Bond Act). The Notice of Claim should include:

  1. The name, address, and phone number of the claimant
  2. The name of the project
  3. The location of the project
  4. The name of the debtor
  5. The amount owed
  6. Date labor or materials were last furnished
  7. A request for a copy of the bond34

34   UTAH CODE ANN. § 14-1-19


When must the Notice of Claim be sent?

The Notice of Claim should be sent within ninety days after last furnishing labor or material35.

Notice of Claim Timeline

Figure 14 Deadline for Bond Claim on Private Project

How

The notice must be sent by registered or certified mail, postage prepaid, return receipt requested36.

Who

A certified version should go to the original contractor and the owner37. Copies of the notice should go by first class mail to all contractors and suppliers between the claimant and the original contractor.

35   UTAH CODE ANN. § 14-2-1(b)

36   UTAH CODE ANN. § 14-1-19

37   UTAH CODE ANN. § 14-1-19


After the Notice of Claim, should I take any further action?

If you are not paid within ninety (90) days after last furnishing labor or material38, you must file an action (lawsuit), within one (1) year after last furnishing labor or material39.

Lawsuit Timeline

Figure 15 Deadline to file lawsuit for Private Project

38   UTAH CODE ANN. § 14-2-1(4)

39   UTAH CODE ANN. § 14-2-1(5)(b)


 
 

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