The Utah Preconstruction Lien Process Explained

Several Utah contractors are common with the development lien system to safe payment for operate or resources used in a constructing undertaking. But what about the surveyors, architects, engineers, and other folks who give solutions before breaking floor on the undertaking? Utah actually gives them a identical payment software, regarded as a preconstruction lien. Having said that, the measures to declare a single differ from the common building lien method. Here’s a breakdown of every thing you have to have to know to protected, perfect, and implement a preconstruction lien in Utah.

What is a preconstruction lien?

In Utah, a preconstruction lien is a sort of payment security for all those that give particular solutions right before the development stage of a venture begins. This includes products and services these types of as land surveying, preparing drawings and requirements, and extra.

Preconstruction liens v. design liens

Utah provides two diverse varieties of liens for construction venture contributors to secure payment: The much more common “construction lien” and a “preconstruction lien,” every of which has their individual distinctive demands.

But just before we dive into the particulars, let’s start with the basics. What precisely constitutes “preconstruction companies?”

The phrase is plainly defined less than Utah Code §38-1a-102(29): “Preconstruction service” suggests to strategy or layout, or to assist in the scheduling or design of, an enhancement or a proposed enhancement:

• Right before building of the advancement commences
• For payment independent from any compensation paid out or to be compensated for development perform for the enhancement

This covers a extensive wide range of services, which includes:

• Consulting
• Conducting a site investigation or assessment
• Programming
• Preconstruction value or quantity estimating
• Preconstruction scheduling
• Undertaking a preconstruction development feasibility evaluate
• Procuring development expert services,
• Preparing a review, report, rendering, product, boundary or topographic survey, plat, map, design, approach, drawing, specification, or contract doc.

(Prolonged) story brief: A preconstruction lien is obtainable to architects, engineers, surveyors, estimators, schedulers, and the like. Now that we know who is secured beneath Utah’s preconstruction lien laws, let us go on to the how.

Preliminary notice requirements

Securing the ideal to file a preconstruction lien in Utah commences with a preliminary recognize, which is referred to as a Recognize of Preconstruction Service.

Master additional about Utah’s preliminary discover needs

All potential claimants who present preconstruction companies ought to file a See of Preconstruction Provider through the Utah Condition Building Registry. It need to be filed no much less than 20 times just after the person commences supplying providers for the expected advancement.

This is a demanding deadline: Compared with preliminary notices for construction liens, if the deadline is missed, then the claimant loses the suitable to file a preconstruction lien.

Info needed on a Recognize of Preconstruction Provider

As much as what details demands to be furnished, this is outlined beneath Utah Code §38-1a-401(f), which states the the observe should really involve:

• Claimant’s identify, address, phone selection, and e mail address
• Selecting party’s name, address, cellphone amount, and e mail tackle
• Normal description of preconstruction services
• Proprietor of record’s title (or reputed owner’s name)
• County where by the expected enhancement is located
• Tax parcel ID number
• Statement that claimant intends to claim a preconstruction lien if not paid out for the preconstruction expert services to be offered

How to file a preconstruction lien in Utah

If payment is not forthcoming, it may possibly be time to file a lien. A preconstruction lien must be submitted no afterwards than 90 times soon after the last date the claimant done providers coated by the lien.

The lien ought to be submitted in the county recorder’s office environment of the county the place the undertaking is situated. Perspective contact facts for all county recorder offices in Utah here.

It’s a very good idea to get hold of the recorder’s office ahead of time to validate that you meet all the certain demands.

Related: 9 issues to check with a county recorder just before submitting a lien

The lien alone ought to include all of the adhering to data:

• Claimant title, handle, and number
• Assertion that you are boasting a preconstruction lien
• Date detect of preconstruction companies was submitted
• Hiring party identify
• Description of services
• Very last date of effectiveness
• Proprietor of file (or reputed proprietor) name
• Property description
• Amount claimed, excluding cur
  iosity, expenses, and lawyer service fees
• Signature of the claimant
• If the lien is against an operator-occupied residence, the lien will have to also consist of a assertion describing the methods an proprietor may acquire to remove the lien in accordance with §38-11-106.

After finish, the preconstruction lien kind ought to be notarized just before filing.

Relevant: Read through the guide to notarizing widespread building paperwork

Immediately after the preconstruction lien has been filed, a copy of the declare should really be despatched to the assets proprietor by certified mail in just 30 times of filing.

Failing to supply a copy of the declare inside 30 days is not lethal to the claimant’s legal rights, but lacking the deadline will stop them from gathering courtroom charges and lawyer fees if they require to foreclosure on the lien.

For extra facts, FAQs, and sources for both of those contractors and house owners, stop by the Utah Division of Occupational and Specialist Licensing.

Preconstruction lien enforcement deadline

Utah preconstruction liens really do not very last without end. At the time filed, the assert will only be valid for 180 times from the date the declare was filed. If payment hasn’t been built, a foreclosures motion need to be initiated within this timeframe.

Keep in mind that a foreclosures action is a lawsuit, so you ought to consult with a Utah development attorney to assist manual you by way of this procedure.

Finally, if payment does appear just before enforcement action is important, then a lien release should really be filed to get rid of the claim from community history. This is conventional treatment, but if a claimant fails to do so, a need for the launch of the declare will most likely follow.

If these types of a desire is acquired, the lienholder really should file a launch in just 10 times. Failure to do so can subject matter the lien holder to a penalty of $100 for each day, or any precise damages incurred by the owner — whichever is bigger.

Far more Utah construction payment sources

This is a information on how to file Utah preconstruction liens, but you may have other issues about building lien rights, prompt payment deadlines, retainage requirements, and additional in Utah.

Look at all of our methods, free varieties, and guides to assist you get paid what you’ve gained in Utah.