Lien Fundamentals & Contracts
Utah Construction Contracts Quiz
1. Construction contracts must be in writing to be legally enforceable.
2. A written contract is valid only if signed by both parties to the contract.
3. Contingent payment clauses, such as "pay-when-paid" and "pay-if-paid" clauses, are enforceable under Utah law.
4. Retainage is limited to what percentage under Utah law?
E. No limit
5. Contractors are entitled to interest that accrues on retainage.
6. Utah law requires a one-year warranty for construction.
7. The prevailing party in a construction dispute is entitled to be paid its attorney's fees.
8. What is the maximum amount of interest allowed to be charged on past due invoices in a construction contract?
E. No limit
9. What are liquidated damages?
A. Money damages that are only allowed to be assessed for missing a construction deadline
B. The amount of damages agreed upon at the formation of a contract
C. Money damages that can be issued as a penalty or fine in addition to any other damages owed to an owner or contractor
D. Money damages that are available for water utility projects
10. Changes to a scope of work (i.e., change orders) must always be agreed to in writing.
11. An interest and attorney's fees provision shown on an invoice, but not in the contract, is enforceable
12. What is the best way to avoid and resolve disputes in the construction industry?
A. Having a very robust written contract that protects your interests
B. Ensuring that you take all necessary steps to preserve your lien rights.
C. Having your attorney on speed dial
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