Lien and Bond Amendments for the 2013 Legislative Session

On Wednesday, August 16, 2012, the Interim Business and Labor Committee asked for comments and information about the implementation of the State Construction Registry amendment which went into effect on August 1, 2011.  The following is a list of information which was given to the Legislature by the Utah construction Suppliers Association. 


Only about a dozen counties have searchable information online which limits the ability to find parcel numbers (particularly in the less populous counties where property is not indexed by address); several suppliers say they are being asked to withdraw prelims without being paid prior to withdrawal, and on projects where there is more there are multiple projects but only one parcel numbers (such as strip malls and other commercial rental properties with multiple tenant improvement projects), we are getting a lot of comments about a general doing TI’s in Unit A,  asking subs and suppliers to withdraw prelims they filed for TI’s in Unit B,C, or D.


We are also getting a lot of comments from service contractors and other who work directly with owners asking why they have to prelim a job when they are working directly with the owner.  So we need to look in to the wisdom of requiring parcel numbers on all prelims, as opposed to prelims for financed construction.  Perhaps we could use it as a mechanism for priority, but not an absolute requirement for a lien.  For example, if you are working directly with the owner, if you are working as a sub or suppliers and you file a prelim with a parcel number, your lien relates back to the first prelim.  If you don’t prelim, your lien priority is the date it is recorded.


Another suggestion is to allow subs and suppliers to withdraw and re-file by clicking a button (and deeming the prelim withdrawn and refilled by operation of law), rather than looking up the prelim, withdrawing the prelim, then waiting for the construction loan to close, then going back in to the SCR, and refilling within 20 days.


This and other items were discussed and meetings are underway to address these issues.  If you find that you have other issues which you are confronting with the State Construction Registry or with Lien Laws, contact us so we can submit that information to the association for consideration.