A Creditor’s Guide to Utah’s State Construction Registry
It is becoming an all too common situation on Utah construction projects where contractors and subcontractors become insolvent without paying downstream subcontractors and suppliers for their labor, services, materials or equipment. In cases of insolvency, a contract claim against the debtor may be worthless. In these situations, subcontractors and suppliers may need to pursue different sources for payment, such as mechanic's lien and payment bond claims.
Utah, like many other states, requires that certain notice be given as a condition to making mechanic's lien and payment bond claims since such claims will likely result in an owner or contractor paying twice. In Utah, notice is given through the State Construction Registry (SCR). The SCR is an online "bulletin board" (www.scr.utah.gov) designed to keep owners informed of all subcontractors and suppliers on their projects. Through the SCR, a "list" of all subcontractors and suppliers for the project is started by the filing of a Notice of Commencement. Subcontractors and suppliers can then add their names to this list by filing a Preliminary Notice. By being informed of those participating on their projects, owners and contractors can then take action to make sure the subcontractors and suppliers on the list are paid.