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Utah Waivers

  • A waiver signed by one contractor does not affect the rights of the other contractors who were not parties to the waiver and did not consent to its terms.
  • Waivers of lien in a contract are invalid.
  • No waiver will be implied from pay-if-paid language in a contract.
  • Waivers signed after commencement of work are presumably valid, and care should be taken to avoid waiver of lien rights for unpaid retainage, unbilled changes, or work not yet performed.
  • "Paid if Paid" is enforced if explicit.
  • "Pay when Paid" suggests time for payment.
  • Pay-when-paid clause in the subcontract or purchase order does not create a condition precedent to payment.

Retainage Provisions

Public & Private

  • The maximum rate of retainage is 5 percent of the total construction price. The percentage withheld between the contractor and the subcontractor, or between subcontractors, shall be the same as the awarding authority's retention if the retention percentage in the original construction contract between an awarding authority and the original contractor is less than 5 percent; or, after the original contract is executed but before completion of the construction contract, the retention percentage isreduced to less than 5 percent. UTAH CODE ANN. § 13-8-5(3).
  • Any withheld money must be retained in an interest-bearing account. The interest accrued is for the benefit of the contractor and subcontractors and shall be paid after the project is accepted by the owner. UTAH CODE ANN. § 13-8-5(4).