Utah Bond Claim Guide and FAQs

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Utah Bond Claim Overview

Utah

Preliminary Notice Deadlines
15 Days

Notice of Commencement required not more than 15 days from the commencement of the project.

Utah

Bond Claim Deadlines
Prime contractors cannot file a claim against their own payment bond.

Utah

Preliminary Notice Deadlines
20 Days

Preliminary notice must be filed by the later of either 1) 20 days after the claimant’s first furnishing labor and/or materials to the project, or 2) 20 days after the Notice of Commencement is filed if the claimant began furnishing labor and/or materials prior to the Notice of Commencement being filed. Laborers exempt. If Notice of Commencement not filed, or filed late, no notice required.

Utah

Bond Claim Deadlines
90 Days

There is no formal bond claim required, although it is recommended to send one within 90 days after the claimant's last furnishing or labor and/or materials to the project to initiate the claim process. Claims against the public entity must be sent within 90 days after the claimant's last furnishing or labor and/or materials to the project

Utah

Enforcement Deadlines
1 Year

Both bond claims, and claims against the public entity must be initiated more than 90 days, but less than 1 year, after the claimant’s last furnishing of labor and/or materials to the project. Note than suit may not be initiated prior to parties receiving either preliminary notice, or notice of the claim as applicable.

Utah

Preliminary Notice Deadlines
20 Days

Preliminary notice must be filed by the later of either 1) 20 days after the claimant’s first furnishing labor and/or materials to the project, or 2) 20 days after the Notice of Commencement is filed if the claimant began furnishing labor and/or materials prior to the Notice of Commencement being filed. Laborers exempt. If Notice of Commencement not filed, or filed late, no notice required.

Utah

Bond Claim Deadlines
90 Days

There is no formal bond claim required, although it is recommended to send one within 90 days after the claimant's last furnishing or labor and/or materials to the project to initiate the claim process. Claims against the public entity must be sent within 90 days after the claimant's last furnishing or labor and/or materials to the project

Utah

Enforcement Deadlines
1 Year

Both bond claims, and claims against the public entity must be initiated more than 90 days, but less than 1 year, after the claimant’s last furnishing of labor and/or materials to the project. Note than suit may not be initiated prior to parties receiving either preliminary notice, or notice of the claim as applicable.

Utah Bond Claim FAQs

Claim FAQs

What types of projects are covered under Utah’s public bond claim laws?

Utah does not have a minimum contract price threshold for the Little Miller Act to apply. The public payment bond claim laws apply to all projects contracted by any Utah public entity; state, local, municipal, or otherwise.

Additionally, if the public entity fails to require the general contractor to provide a payment bond, certain claimants may make a claim directly against the public entity

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Utah Bond Claim FAQs
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Utah Bond Claim FAQs
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Summary of Utah bond claim and notice laws and requirements for private Utah projects including free forms, FAQs, resources and more.
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Who is protected under Utah’s public bond claim laws?

In Utah, the parties protected are generally fairly broad, however, it depends on the specific claim made.

Bond claims

For a bond claim, all parties below the general contractor who furnish labor and/or material to the project are protected. Presumably, this means all tiers of subcontractors and suppliers to suppliers are protected.

Claims against the public entity

For a claim against the public body, parties who furnish labor and/or material to the general or a first-tier subcontractor are allowed to make a claim when the public body fails to require the general to secure a payment bond.

Summary
Utah Bond Claim FAQs
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Utah Bond Claim FAQs
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Summary of Utah bond claim and notice laws and requirements for private Utah projects including free forms, FAQs, resources and more.
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When is the deadline to send a Utah bond claim?

Bond claims

Utah does not require any formal bond claim before a lawsuit is filed, however, sending one can initiate the claim process and could help resolve the dispute without litigation. Since this is not required, claimants may want to consider sending the claim within 90 days of the claimant’s last date of furnishing labor and/or material to the project.

• For more information Payment Bond Claims: How to Get Paid by a Surety Bond in Construction

Claims against the public entity

Notice of the claim against the public entity must be received by the public entity within 90 days from the claimant’s last furnishing of labor and/or material to the project.

Summary
Utah Bond Claim FAQs
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Utah Bond Claim FAQs
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Summary of Utah bond claim and notice laws and requirements for private Utah projects including free forms, FAQs, resources and more.
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What information needs to be included in a Utah bond claim?

Bond claims

Since a formal bond claim isn’t required by statute in Utah, providing some general information about the project, the claimant’s role and hiring party, and the amount claimed to be due should be sufficient.

Claims against the public entity

A Utah notice of claim against the public entity is governed by Utah Code §14-1-19 and should include the following information:

• Claimant’s name & address;

• Property description;

• Amount claimed; &

• Hiring party’s name & address.

Summary
Utah Bond Claim FAQs
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Utah Bond Claim FAQs
Description
Summary of Utah bond claim and notice laws and requirements for private Utah projects including free forms, FAQs, resources and more.
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Who should receive a Utah payment bond claim?

Bond claims

If sent, the notice of claim against the payment bond should be provided to the surety and the general contractor who posted the bond.

Claims against the public entity

A Utah claim against the public entity should be sent to the government entity that contracted the construction or improvement.

Summary
Utah Bond Claim FAQs
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Utah Bond Claim FAQs
Description
Summary of Utah bond claim and notice laws and requirements for private Utah projects including free forms, FAQs, resources and more.
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How must the bond claim be sent in Utah?

Claims against the public entity must be sent by registered or certified mail, postage prepaid. Since bond claims aren’t required by statute, any method of delivery is acceptable; however we recommend sending the claim by certified mail.

Summary
Utah Bond Claim FAQs
Article Name
Utah Bond Claim FAQs
Description
Summary of Utah bond claim and notice laws and requirements for private Utah projects including free forms, FAQs, resources and more.
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When is the deadline to initiate suit, or, how long is a Utah bond claim effective?

Both bond claims, and claims against the public entity must be initiated more than 90 days, but less than 1 year, after the claimant’s last furnishing of labor and/or materials to the project. Note that the lawsuit may not be initiated prior to parties receiving either preliminary notice, or notice of the claim as applicable.

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Summary
Utah Bond Claim FAQs
Article Name
Utah Bond Claim FAQs
Description
Summary of Utah bond claim and notice laws and requirements for private Utah projects including free forms, FAQs, resources and more.
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Levelset
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Utah Bond Claim Free Forms

Notice of Intent to Make Bond Claim Form

Notice of Intent to Make Bond Claim Form

A Notice of Intent to Make Bond Claim is not a required document, but it can be a powerful one. By sending this notice, a claimant...

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Utah Bond Claim Statutes

When you perform work on a state construction project in Utah, and are not paid, you can file a “lien” against the project pursuant to Utah’s Little Miller Act. Since the claim is not against the state or county’s actual property, but instead against a posted bond, the claim is not really called a “lien” but is more frequently referred to as a “bond claim” or “little miller act claim.” Utah’s Little Miller Act is found in Utah Code §§14-1-18 – 14-1-20, and §§63G-6a-11101 – 63G-6a-1105, which are reproduced below. Updated as of 2022.

Title 14- Contractors' Bonds. Chapter 1- Public Contracts

§ 14-1-18. Definitions - Application of Procurement Code to payment and performance bonds

1)

(a) For purposes of this chapter, “political subdivision” means any county, city, town, school district, local district, special service district, community reinvestment agency, public corporation, institution of higher education of the state, public agency of any political subdivision, and, to the extent provided by law, any other entity which expends public funds for construction.

(b) For purposes of applying Section 63G-6a-1103 to a political subdivision, “state” includes “political subdivision.”

(2) Notwithstanding any provision of Title 63G, Chapter 6a, Utah Procurement Code, to the contrary, Section 63G-6a-1103 applies to all contracts for the construction, alteration, or repair of any public building or public work of the state or a political subdivision of the state.

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Utah Bond Claim FAQs
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Utah Bond Claim FAQs
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§ 14-1-19. Failure of government entity to obtain payment bond - Right of action - Notice

(1) If the state or a political subdivision fails to obtain a payment bond, it shall, upon demand by a person who has furnished labor or supplied materials to the contractor or subcontractor for the work provided for in a contract which is subject to Section 14-1-18, promptly make payment to that person.

(2) A person described in Subsection (1):

(a) shall have a direct right of action against the state or the political subdivision in any court having jurisdiction in any county in which the contract was to be performed, upon giving written notice to the state or political subdivision within 90 days from the date on which such person performed the last of the labor or supplied the last of the material for which claim is made;

(b) shall state in the notice a designation of the construction project and its location, the amount claimed, and the name of the party for whom the labor was performed or to whom the material was supplied; and

(c) shall serve the notice by registered or certified mail, postage prepaid, on the state agency or political subdivision that is a party to the contract.

(3) An action described in this section may not be commenced later than one year after the day on which the last of the labor was performed or material was supplied by the person bringing the action.

(4) Unless otherwise specified in a lawful contract between the state or the political subdivision against which the claim is made and the person demanding payment, the interest rate applicable to the payment or claim is the rate described in Subsection 15-1-1(2).

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Utah Bond Claim FAQs
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Utah Bond Claim FAQs
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Summary of Utah bond claim and notice laws and requirements for private Utah projects including free forms, FAQs, resources and more.
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§ 14-1-20. Preliminary notice requirement

(1) Any person who furnishes labor, service, equipment, or material for which a claim may be made under this chapter shall provide preliminary notice to the designated agent as prescribed by Section 38-1b-202, except that this section does not apply:

(a) to an individual performing labor for wages; or

(b) if a notice of commencement is not filed as prescribed in Section 38-1b-201 for the project or improvement for which labor, service, equipment, or material is furnished.

(2) Any person who fails to provide the preliminary notice required by Subsection (1) may not make a claim under this chapter.

(3) The preliminary notice required by Subsection (1) shall be provided prior to commencement of any action on the payment bond.

(4) Subsection (1)(a) does not exempt the following from complying with the requirements of this section:

(a) a temporary labor service company or organization;

(b) a professional employer company or organization; or

(c) any other entity that provides labor.

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Utah Bond Claim FAQs
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Utah Bond Claim FAQs
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Title 63G- General Government. Chapter 6a- Utah Procurement Code. Part 11- Bonds.

§ 63G-6a-1101. Title

This part is known as “Bonds.”

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Utah Bond Claim FAQs
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Utah Bond Claim FAQs
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§ 63G-6a-1102. Bid security requirements - Directed suretyship prohibited - Penalty

(1) Bid security in an amount equal to at least 5% of the amount of the bid shall be required for all competitive bidding for construction contracts. Bid security shall be a bond provided by a surety company authorized to do business in this state, the equivalent in cash, or any other form satisfactory to the state.

(2) When a bidder fails to comply with the requirement for bid security described in the invitation for bids, the bid shall be rejected unless, pursuant to rules of the rulemaking authority, the issuing procurement unit determines that the failure to comply with the security requirements is nonsubstantial.

(3) After the bids are opened, they shall be irrevocable for the period specified in the invitation for bids. If a bidder is permitted to withdraw a bid before award, no action shall be taken against the bidder or the bid security.

(4)

(a) When issuing an invitation for a bid under this chapter, the procurement official responsible for carrying out a construction project may not require a person or entity who is bidding for a contract to obtain a bond of the type described in Subsection (1) from a specific insurance or surety company, producer, agent, or broker.

(b) A person who violates Subsection (4)(a) is guilty of an infraction.

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Utah Bond Claim FAQs
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Utah Bond Claim FAQs
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§ 63G-6a-1103. Bonds or security necessary when contract is awarded - Waiver - Action - Attorney fees

(1) When a construction contract is awarded under this chapter, the contractor to whom the contract is awarded shall deliver the following bonds or security to the procurement unit, which shall become binding on the parties upon the execution of the contract:

(a) a performance bond satisfactory to the procurement unit that is in an amount equal to 100% of the price specified in the contract and is executed by a surety company authorized to do business in the state or any other form satisfactory to the procurement unit; and

(b) a payment bond satisfactory to the procurement unit that is in an amount equal to 100% of the price specified in the contract and is executed by a surety company authorized to do business in the state or any other form satisfactory to the procurement unit, which is for the protection of each person supplying labor, service, equipment, or material for the performance of the work provided for in the contract.

(2)

(a) When a construction contract is awarded under this chapter, the procurement official responsible for carrying out the construction project may not require a contractor to whom a contract is awarded to obtain a bond of the types referred to in Subsection (1) from a specific insurance or surety company, producer, agent, or broker.

(b) A person who violates Subsection (2)(a) is guilty of an infraction.

(3) Rules of a rulemaking authority may provide for waiver of the requirement of a bid, performance, or payment bond for circumstances in which the procurement official considers any or all of the bonds to be unnecessary to protect the procurement unit.

(4) A person has a right of action on a payment bond under this section for any unpaid amount due to the person if:

(a) the person has furnished labor, service, equipment, or material for the work provided for in the contract for which the payment bond is furnished under this section; and

(b) the person has not been paid in full within 90 days after the last day on which the person performed the labor or service or supplied the equipment or material for which the claim is made.

(5) An action upon a payment bond may only be brought in a court of competent jurisdiction in a county where the construction contract was to be performed. The action is barred if not commenced within one year after the last day on which the claimant performed the labor or service or supplied the equipment or material on which the claim is based. The obligee named in the bond need not be joined as a party to the action.

(6) In any suit upon a payment bond, the court shall award reasonable attorney fees to the prevailing party, which fees shall be taxed as costs in the action.

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Utah Bond Claim FAQs
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Utah Bond Claim FAQs
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§ 63G-6a-1104. Preliminary notice requirement

(1) Any person furnishing labor, service, equipment, or material for which a payment bond claim may be made under this chapter shall provide preliminary notice to the designated agent as prescribed by Section 38-1b-202, except that this section does not apply:

(a) to an individual performing labor for wages; or

(b) if a notice of commencement is not filed as prescribed in Section 38-1b-201 for the project or improvement for which labor, service, equipment, or material is furnished.

(2) Any person who fails to provide the preliminary notice required by Subsection (1) may not make a payment bond claim under this chapter.

(3) The preliminary notice required by Subsection (1) must be provided before commencement of any action on the payment bond.

(4) Subsection (1)(a) does not exempt the following from complying with the requirements of this section:

(a) a temporary labor service company or organization;

(b) a professional employer company or organization; or

(c) any other entity that provides labor.

Summary
Utah Bond Claim FAQs
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Utah Bond Claim FAQs
Description
Summary of Utah bond claim and notice laws and requirements for private Utah projects including free forms, FAQs, resources and more.
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§ 63G-6a-1105. Form of bonds - Effect of certified copy

(1) The form of the bonds required by this part shall be established by rule made by the rulemaking authority.

(2) Any person may obtain from the procurement unit a certified copy of a bond upon payment of the cost of reproduction of the bond and postage, if any.

(3) A certified copy of a bond is prima facie evidence of the contents, execution, and delivery of the original.

Summary
Utah Bond Claim FAQs
Article Name
Utah Bond Claim FAQs
Description
Summary of Utah bond claim and notice laws and requirements for private Utah projects including free forms, FAQs, resources and more.
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