What does Utah’s prompt payment law require on private construction?

In Utah, a contractor paid for billed work must pay its subcontractors and suppliers their share within 30 days after receiving the funds or after payment is due under the billing, whichever is later, unless the contract says otherwise, or owe 1% a month interest plus collection costs and attorney fees. The construction trades statute sets no deadline for an owner’s progress payments; it makes unpaid construction funds payable to the contractor as provided in Section 13-8-5, which governs retention. On nonresidential commercial or industrial projects, retention may not exceed 5% of any payment and must be released within 45 days after the later of the contractor’s billing statement, a certificate of occupancy or final acceptance notice, permitted occupancy, or the contractor’s acceptance of final pay quantities, and a contractor must pay each subcontractor its share of retention within 10 days of receiving it. An owner or contractor who knowingly and wrongfully withholds retention owes a charge of 2% a month on top of any interest due. From January 1, 2027, H.B. 40 (2026) moves the subcontractor payment rule to Section 58-55-209 with the same 30-day deadline and 1% monthly interest. A written contract can set its own payment terms where the statute allows. This is Utah Code §§ 58-55-602, 58-55-603, 13-8-5.

WhatUtah
Payment deadlineSubcontractor paid within 30 days; 1% a month
Who this coversPrivate construction, not only public works

What the statute says

“… the contractor fails to pay for work performed by subcontractors or suppliers within 30 consecutive days after receiving construction funds from the owner or another contractor for work performed and billed …”

Quoted word for word from the section’s text.

Source

Utah Code §§ 58-55-602, 58-55-603, 13-8-5

Read the statute in the Utah Code (Utah Legislature): le.utah.gov.

Checked against the statute on November 15, 2026.

This is a summary of a published statute, not legal advice. Rules change, local ordinances can add to them, and the terms of a specific lease may differ. Check the citation and speak to a lawyer before acting.

How Seayora uses this rule

A contractor on Seayora keeps every job’s dates, its estimate, its invoices and its payments in one record, so the date work was last performed, the date each invoice went out and the amount still owed are on file when a lien or payment deadline is counted.

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