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What is a Request for Adequate Assurance

A written request which you serve on the person required to pay you for your work on a construction project, which seeks assurance that such person possesses or has access to enough money to pay you for all approved work on a construction project40.

40   UTAH CODE ANN. § 38-1-40(4)(a)


Who may make a Request for Adequate Assurance?

Any person who filed a Preliminary Notice and a Good Faith Estimate in response to a Notice of Intent to File a Notice of Completion41.

41   UTAH CODE ANN. § 38-1-40(4)(a)


When must a Request for Adequate Assurance be served

Within ten (10) days after filing the Good Faith Estimate in the SCR42.

Adequate Assurance Timeline

Figure 16 Deadline to file Good Faith Estimate

42   UTAH CODE ANN. § 38-1-40(4)(a)


Who receives the Request for Adequate Assurance?

You serve the Request for Adequate Assurance on the person you have a direct contract with43.

43   UTAH CODE ANN. § 38-1-40(4)(a)


How is the Request for Adequate Assurance Served?

Hand delivery, certified mail, or direct service by a sheriff or constable44.

44   UTAH CODE ANN. § 38-1-40(4)(c)


What is the effect of serving a Request for Adequate Assurance?

It allows you to receive assurance from the person who hired you that they have sufficient funds to pay you for the approved work you have performed on the construction project, and if no such assurance is received, you are entitled to pursue a legal action to receive such assurance and have the Court require that adequate security to pay such amount is posted45.

45   UTAH CODE ANN. § 38-1-40


Is there a deadline to respond to a Request for Adequate Assurance?

No46.

46   UTAH CODE ANN. § 38-1-40(4)


If I do not receive a response to my Request for Adequate Assurance, can I do anything about it?

Yes, you can file a lawsuit against the person you served with the request, and compel them to respond. As part of the lawsuit, if they cannot show that they have adequate finding to pay you, you can have the court enter an order requiring them to obtain such funding47.

47   UTAH CODE ANN. § 38-1-40(5)


 
 

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