Utah construction service contract template
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How Utah construction service contract Differ from Other States
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Utah law requires specific disclosures about licensed contractors and homeowner's rights, not always mandated in other states.
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Retainage limits are governed by Utah Code, often allowing for five percent or less, which may differ from other state requirements.
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Utah mandates certain lien notice procedures unique to the state, affecting payment rights and remedies available to contractors.
Frequently Asked Questions (FAQ)
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Q: Is a written construction contract required by law in Utah?
A: While not always required by law, a written contract is strongly recommended for clarity and to resolve disputes.
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Q: Do Utah construction service contracts need to specify contractor licensing?
A: Yes, Utah law requires disclosure of contractor licensing status in the contract for most residential projects.
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Q: What lien rights exist for contractors in Utah?
A: Utah contractors have lien rights, but they must follow strict notice requirements to enforce payment through a lien.
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Utah Construction Service Contract
This Utah Construction Service Contract (the “Agreement”) is made and entered into as of this [Date] by and between:
- [Contractor Legal Name], a [State] [Business Type] with its principal place of business at [Contractor Business Address], Utah Contractor License Number: [License Number], hereinafter referred to as “Contractor,”
- and
- [Client/Owner Legal Name], residing at [Client/Owner Address], hereinafter referred to as “Owner.”
1. Project Description
- The Project (the “Project”) shall consist of the construction of [Brief Project Description] located at [Project Address], Utah, and legally described as: [Legal Property Description].
- Project Scope:
- Option A: The Contractor shall perform all work as described in the attached plans and specifications labeled Exhibit A.
- Option B: The Contractor shall perform the following specific tasks:
- List each task, including materials and labor.
- Plans and Specifications: All work shall conform to the architectural/engineering drawings attached as Exhibit B.
- Permits and Approvals: The Contractor shall obtain all necessary permits and regulatory approvals required by the State of Utah and [Local Jurisdiction].
2. Pre-Construction Obligations
- Geotechnical Report:
- Option A: The Owner is responsible for providing a geotechnical report prior to the commencement of work.
- Option B: The Contractor is responsible for obtaining a geotechnical report, the cost of which is included in the Contract Sum.
- Site Conditions:
- Option A: The Owner warrants that the site is free of any known hazardous materials.
- Option B: The Contractor shall be responsible for assessing the site for hazardous materials prior to commencement of work, subject to a separate allowance as detailed in Section 4.
- Surveys and Testing: Responsibility for surveys and testing lies with [Responsible Party, e.g., Owner or Contractor].
- Site Preparation: [Responsible Party, e.g., Owner or Contractor] shall prepare the site for construction, including [Specific tasks such as clearing, grading, etc.].
3. Compliance with Laws
- The parties shall comply with the Utah Construction Trades Licensing Act, all applicable building codes, zoning ordinances, safety regulations, OSHA standards, and all other applicable Utah statutes and regulations.
- The Contractor represents and warrants that it holds all permits and bonds as mandated by Utah law for the Project.
4. Scope of Services
- Pre-Construction Phase:
- [List tasks such as design review, value engineering, etc.]
- Site Preparation Phase:
- [List tasks such as demolition, excavation, etc.]
- Construction Phase:
- [List tasks such as framing, plumbing, electrical, etc.]
- Post-Construction Phase:
- [List tasks such as final inspections, system testing, etc.]
- Clean-Up Phase:
- [Specify clean-up requirements and responsibilities]
- Punch List Phase:
- [Define process for creating and completing a punch list]
- Schedule:
- The Contractor shall commence work on or before [Start Date] and achieve substantial completion by [Substantial Completion Date]. Final completion shall be achieved by [Final Completion Date].
- Milestones:
- [List key milestones with corresponding dates]
5. Deliverables and Standards
- All work shall be performed in a good and workmanlike manner, conforming to industry standards and Utah building product standards.
- Materials shall meet the specifications outlined in Exhibit C and any specific performance or testing protocols agreed upon.
- Deliverables: [List tangible deliverables such as as-built drawings, operating manuals, etc.]
6. Indemnification
- The Contractor shall indemnify and hold harmless the Owner from and against any and all claims, losses, damages, liabilities, including environmental liabilities and compliance with hazardous materials regulations (including lead, asbestos, radon), arising out of or relating to the Contractor’s performance of this Agreement, except to the extent caused by the negligence or willful misconduct of the Owner.
- The Owner shall indemnify and hold harmless the Contractor from and against any and all claims, losses, damages, liabilities arising out of or relating to inaccuracies in information provided by the Owner to the Contractor.
7. Payment Terms
- Total Contract Sum: The total contract sum for the Project is [Dollar Amount], subject to adjustments as provided in this Agreement.
- Payment Milestones:
- Payment 1: [Dollar Amount] upon [Milestone]
- Payment 2: [Dollar Amount] upon [Milestone]
- Payment 3: [Dollar Amount] upon [Milestone]
- Unit Pricing/Allowances: [Describe any unit pricing or allowances]
- Retention:
- For private projects, retention shall be [Percentage, maximum 5%], held until final completion and acceptance of the work.
- For public projects, retainage shall be consistent with Utah Statute (5% retainage cap for public projects, unless otherwise agreed as per Utah Code).
- Change Orders: Any changes to the scope of work must be approved in writing via a change order, which will adjust the contract sum and schedule accordingly.
- Sales Tax: Applicable Utah sales tax will be added to all invoices.
8. Lien Waivers and Releases
- The Contractor shall provide unconditional lien waivers and release forms per Utah’s mechanics’ lien laws (Utah Code Title 38, Chapter 1a) upon receipt of each payment.
- The Contractor shall provide a Notification of Right to Lien to the Owner.
- Disputed Work/Payment: [Describe the process for addressing disputed work or payment, including any pay-if-paid or pay-when-paid clauses, allowed under Utah law.]
9. Insurance
- The Contractor shall maintain liability insurance, worker’s compensation insurance, builder’s risk insurance, and property insurance in compliance with Utah insurance regulations.
- The Owner shall be named as an additional insured on the Contractor’s liability insurance policy.
- The Contractor shall provide certificates of insurance to the Owner prior to commencement of work.
10. Change Orders
- Any changes to the scope of work, materials, or schedule must be documented in a written change order signed by both parties.
- The change order shall include an adjustment to the contract sum and/or schedule, as applicable.
- Unforeseen Site Conditions: If unforeseen site conditions are encountered, the Contractor shall promptly notify the Owner and the parties shall negotiate a change order to address the condition.
11. Subcontractors
- The Contractor shall use only licensed subcontractors and suppliers as required by Utah licensing regulations.
- The Contractor shall obtain the Owner’s approval prior to hiring any subcontractors.
- The Contractor shall ensure that all subcontractors comply with applicable immigration and employment-related Utah statutes.
12. Safety
- The Contractor shall comply with all Utah-specific safety standards and building inspection regimes.
- The Contractor shall conduct mandatory on-site safety meetings, and maintain incident reporting and workplace signage.
13. Delays
- The Contractor shall not be liable for delays caused by weather, material shortages, permit issues, government shutdowns, or force majeure events.
- The Contractor shall promptly notify the Owner of any delays.
- [Describe the process for extending the schedule and determining compensation (if any) for delays.]
14. Site Security and Utilities
- The Contractor is responsible for site security and protection of utilities.
- The Contractor shall comply with neighboring notification requirements for construction in residential zones.
15. Progress Meetings and Recordkeeping
- The Contractor shall hold regular progress meetings with the Owner.
- The Contractor shall maintain accurate records of inspections and daily logs.
- Notice requirements for project updates or issues: [Specify Notice requirements].
16. Warranty
- The Contractor warrants that all work will be performed in a good and workmanlike manner for a period of one year from the date of substantial completion. This warranty aligns with Utah Code.
- [Describe any manufacturer warranties that apply]
- [Describe any longer statutory warranty obligations]
- [Describe maintenance and defect reporting obligations]
17. Acceptance and Punch List
- Upon substantial completion, the Owner shall inspect the work and create a punch list of any incomplete or defective items.
- The Contractor shall promptly remedy all items on the punch list.
- Final payment shall be made upon completion of all punch list items.
18. Termination
- Termination for Convenience: The Owner may terminate this Agreement for convenience upon written notice to the Contractor.
- [Describe the payment obligations upon termination for convenience.]
- Termination for Cause: Either party may terminate this Agreement for cause upon written notice to the other party if the other party materially breaches this Agreement and fails to cure such breach within [Number] days after receiving written notice thereof.
- [Include Utah-specific default notice and cure periods.]
- Other Termination Events: Termination will also occur upon death or disability, bankruptcy, or insolvency of either party.
- [Describe settlement of outstanding payments in accordance with Utah law.]
19. Dispute Resolution
- The parties shall attempt to resolve any disputes through negotiation.
- If negotiation fails, the parties agree to participate in mediation in [City], Utah.
- [Optional: Arbitration clause specifying rules and location, Utah]
- Governing Law: This Agreement shall be governed by and construed in accordance with the laws of the State of Utah.
- Venue: Exclusive venue for any legal action arising out of or relating to this Agreement shall be in the courts of [County] County, Utah.
- [Optional: Waiver of Jury Trial (if enforceable)]
20. Confidentiality
- The parties agree to hold confidential all project information, plans, and bid details.
- [Optional: Publicity and photography restrictions.]
21. Miscellaneous
- Utility Connections: Responsibility for utility connections lies with [Responsible Party, e.g., Owner or Contractor].
- Temporary Facilities: [Describe allocation of responsibility for temporary facilities.]
- Debris Removal and Jobsite Cleanliness: [Describe allocation of responsibility for debris removal and jobsite cleanliness.]
- Hazardous Materials Discovery: [Describe procedures for managing hazardous materials discovery, including work stoppage and remediation per Utah statutes.]
- Third-Party Claims: [Describe procedures for handling third-party claims and damages to neighboring properties.]
- Property Access: The Owner shall provide reasonable access to the property for the Contractor, inspectors, and code officials.
- Assignment: [Describe provisions governing assignment, delegation, and subcontracting of work.]
- Prevailing Wage: [Include compliance statements for prevailing wage requirements, if applicable.]
- Electronic Records: [Describe requirements for electronic records submission and project document retention.]
- Prompt Payment Act: The parties shall comply with Utah’s Prompt Payment Act.
- Homeowner’s Rights: [Include statement of Utah-specific Homeowner’s Rights and consumer protection disclosures for residential jobs under the Utah "Residence Lien Restriction and Lien Recovery Fund Act." ]
- Material Substitutions: [Describe procedures for material substitutions and approval processes, including disclosure obligations.]
- Notice: All notices under this Agreement shall be in writing and delivered by [Specify methods and addresses consistent with Utah “Notice” statutes.]
- Severability: If any provision of this Agreement is held to be invalid or unenforceable, the remaining provisions shall remain in full force and effect.
- Entire Agreement: This Agreement constitutes the entire agreement between the parties and supersedes all prior negotiations and understandings.
- Required Disclosures:
- [Include any required disclosures such as Notice of Right to Cancel (for residential work), environmentally sensitive site regulations, lead-paint disclosures, and other mandatory state notices.]
IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above.
____________________________
[Contractor Legal Name]
By: [Contractor Signature]
Name: [Contractor Printed Name]
Title: [Contractor Title]
____________________________
[Client/Owner Legal Name]
By: [Client/Owner Signature]
Name: [Client/Owner Printed Name]