Saturday, February 13, 2016

Utah's State Construction Registry

In Utah, there are some potential issues for contractors, subcontractors, suppliers of building materials, and owners of the new construction project.

To help safeguard all involved, the state has created a mandatory online submission for everyone who owns/builds on/supplies for a property with a construction project.

The overall view is that if the owner pays the General Contractor, they hire a SubContractor, who gets their supplies from a local building supplier, the chain of who does what is fairly evident to the General Contractor, however, the owner doesn't necessarily know who is working on his house.  He only knows that he hired a General Contractor.  So if the General Contractor skips out, and leaves town without paying the SubContractor, who in turn would need to pay his supplier, especially after he was paid by the owner of the home, this presents a huge problem... the owner would essentially pay for some things twice in order to free all the liens on his property.  The State Construction Registry if properly used is supposed to address all these issues.

If everyone working on a project registers on the website, then the owner knows who did what, who provided what, and who needs to be paid for what.  Simple as that!

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