Utah contractors have a limited time to file a valid construction lien. Determining whether a lien is timely depends on the circumstances of each project. Contractors should be aware of important dates and project milestones to best protect their right to payment.
If no notice of completion is filed with the Registry, the contractor will have 180 days from “final completion of the original contract” to record its lien. The “original contract” refers to the contract between the project owner and the general or primary contractor on the project.
Determining the date of “final completion” depends on one or more factors:
1. If a permanent certificate of occupancy is required and has been issued by the local building authority, “final completion” is deemed to have occurred on the date the certificate of occupancy was issued. Certificates of occupancy are generally required for any new construction or any construction which changes the occupancy classification of the building or structure.
2. If an inspection is required, but a certificate of occupancy is not required, “final completion” of the contract is the date in which the date that the local building authority completes its final inspection.
3. If no final inspection or certificate of occupancy is required, the “final completion” date is the date when all substantial work on the project has been completed (i.e. all work excluding punch list items). This does not include circumstances in which the project owner is withholding payment to ensure completion of the work (i.e. retention).
4. If a final inspection has not been conducted, or certificate of occupancy has not been issued, because the “original contract” has been terminated, the date of “final completion” is the date which the contract last performed substantial work on the project.
If a notice of completion has been filed with the Registry, a contractor has 90 days after “final completion of the original contract” to record its lien. However, even if a notice of completion has been filed, a contractor cannot file a lien more than 180 days after “final completion of the original contract.”
If you need help determining whether you still have time to file a lien, or whether a lien is timely, please contact our office.