I am a subcontractor. Am I entitled to be paid if the general contractor has not been paid? Should I still file a claim?
1 reply
Dec 13, 2019
Whether or not a subcontractor must wait for their customer to be paid will likely be up to the terms of the contract, itself. If the contract sets a specific time period during which payment must be made and does not make payment reliant on anything else - such as the customer being paid - then a subcontractor should not have to wait to be paid.
However, as I'll explain more below, if the contract features a pay when paid provision, then a subcontractor may end up having to wait to be paid.
Utah allows pay when paid provisions
Utah is a state that allows pay when paid provisions - meaning, if the contract contains a pay when paid clause, then a subcontractor may have to wait until their customer gets paid (or at least wait a reasonable amount of time) before the sub is paid themselves.
But, if the payment terms for the subcontractor aren't at all reliant on the contractor receiving payment, then the sub wouldn't necessarily have to wait - and they could likely proceed with a claim in order to get paid. Further, note that Utah disallows pay if paid provisions. So, even if their customer never gets paid, a subcontractor must be paid within a reasonable amount of time.
Knowing when to file a Utah payment bond claim
With all of the above in mind, note that Utah claimants have a strict deadline for making a claim against the public entity for nonpayment. That claim must be made within 90 days of last furnishing labor or materials to the project. So, if the deadline to make that claim is running close, then a claimant may want to make their claim even if there's a pay when paid provision at hand.
Further, regarding claims against the bond, Utah claimants can proceed straight to filing a lawsuit against the bond - no formal bond claim is necessary before filing suit against the bond. But, if a claimant does want to proceed with a claim against the bond (by filing suit), or if a claimant does want to enforce their claim against the public entity (via lawsuit), then either suit must be filed at least 90 days after the last furnishing date, but before 1 year passes from last furnishing.
I hope this was helpful! For more information regarding Utah bond claims and claims against the public entity: Utah Bond Claim Guide and FAQs.