New Utah Case Expands Contractor Risk to Neighboring Properties

A recent Utah Court of Appeals decision significantly increases the legal exposure contractors face for damage to adjacent properties—even when the harm is caused indirectly or by third parties.

In Rosser v. Elite Craft Homes (2026), a fire started at a construction site (likely by trespassers) and destroyed a neighboring home. The builder argued it had no duty to the neighbor because it didn’t control the third party who started the fire. The court disagreed.

Key takeaway for contractors:

Utah courts now recognize that contractors and landowners owe a duty to neighboring property owners to exercise reasonable care during construction, so make sure your insurance coverage is sufficient to address these potential issues.

What This Means in Practice

1. You can be liable to neighbors—even without a contract

The court made clear that liability is not limited to your client. If your work creates a risk that harms nearby property, you may be responsible.

2. Foreseeability is the driving factor

Courts will look broadly at whether harm to neighbors is generally foreseeable from construction activities—not whether the exact event (like a fire or vibration damage) was predictable.

3. You may be responsible for third-party actions

Even when damage is caused by trespassers or others, you can still face liability if you failed to take reasonable precautions (e.g., site security, hazard mitigation).

4. Control is treated as responsibility

The court emphasized that contractors are typically in the best position to prevent harm, which weighs heavily in imposing a duty.

Why This Matters

This case lowers a key defense contractors have relied on—that they owe no duty to neighboring properties. Now, if your project creates a condition that could harm adjacent property (fire risk, vibration, excavation issues, etc.), you may be exposed to negligence claims.

Bottom Line

If your construction activities can foreseeably impact neighboring property, you must take reasonable steps to prevent that harm—or risk liability. To help deal with such liabilities, have a conversation with your insurance agent to ensure you are properly covered, or call Babcock Scott & Babcock to discuss these issues.

3D Printing in Construction: Laws and Regulations You Need to Know To Stay Compliant

3D printing in construction, sometimes referred to as additive manufacturing, construction 3D printing, or contour crafting, is moving fast: printed walls, structural components, formwork, and prefab elements are already being used on real projects. The legal side, however, is still catching up. Most of the laws that apply aren’t “3D printing laws” so much as adaptations to existing construction, product, and safety rules that accommodate this new building method.

If you’re a contractor, developer, architect/engineer, or supplier considering using 3D printing in your construction projects, there are important things you need to keep in mind. Here are the main legal and regulatory categories that matter, along with some common compliance traps.

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1) Building Codes: Is 3D Printing in Construction Allowed Under Utah Code?

3D printed construction is not prohibited under Utah’s construction codes, but it almost always proceeds under the “alternative materials and methods” provisions.

What this means in Utah

• Local building officials have discretion to approve alternative construction systems if equivalency is demonstrated.
  
• Approval typically requires:
  
  • Utah-licensed structural engineer (PE) stamp
    
  • Test data proving compliance with strength, durability, and life-safety requirements
    
  • Special inspections per the Utah-adopted IBC
    

Counties and cities along the Wasatch Front (Salt Lake, Utah County, Davis, Weber) are generally more familiar with alternative construction methods than rural jurisdictions—but early engagement is still critical.

Typical approvals you’ll need:

• Stamped structural design (licensed engineer)
  
• Material test data (compressive strength, bond, durability, and fire resistance where applicable)
  
• Special inspections (often more intense than conventional construction)
  
• Documentation of the printing process (mix design, QA/QC, calibration logs)
  

Risk point: If the permit set doesn’t clearly define what’s “printed” vs. conventionally built, inspectors could stop work midstream.

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2) Permitting & Inspections: The Human Factor Matters

Even if code allows alternative methods, the project still lives or dies in the permitting process.

Common regulatory hurdles:

• Local building officials may require peer review by a third-party engineer.
  
• Inspectors may request mock-ups or on-site tests (core sampling, pull tests, non-destructive testing).
  
• You may need a special inspection plan akin to complex concrete or structural steel jobs.
  

Best practice: Treat the building department like a stakeholder early. Do a pre-application meeting, bring engineering/test documentation, and propose an inspection checklist that makes their job easier.

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3) Professional Licensing: Who Can “Design” a Printed Structure?

Even if a 3D printing vendor provides the printer, the mix, and the process, the legal responsibility for design often still falls on licensed professionals under state engineering and architecture practice laws.

Common licensing issues

• Engineering practice: Structural design must generally be performed and sealed by a licensed PE.
  
• Architecture practice: Building design, life safety layouts, and code compliance often fall under licensed architects depending on the state and project type.
  
• Contractor licensing: The general contractorand key trades must still meet licensing requirements—even if “the printer did the work.”
  

Risk point: Vendors who value engineer structural details without proper licensure can create liability for everyone downstream.

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4) Product Liability: Is a Printed Wall a “Product” or “Work”?

3D printing blurs the line between:

• a construction service (work performed on real property), and
  
• a product (manufactured component placed into the project).
  

That matters because product liability standards can be stricter—especially for defects that cause injury or property damage.

Who can be liable?

Potentially:

• the 3D printing system manufacturer (hardware/software),
  
• the material supplier,
  
• the printing subcontractor/vendor,
  
• the design professional, or
  
• the GC/developer.
  

Key legal theories that show up:

• Design defect (mix design or geometry)
  
• Manufacturing defect (process drift, voids, layer bonding issues)
  
• Failure to warn (limitations, curing requirements, fire exposure, etc.)
  

Risk point: If a printed component is treated like a “product,” some states allow claims even without proving negligence (strict liability), depending on the circumstances.

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5) Contract Law: Your Biggest Risk Lives in the Agreement

Most 3D printing construction disputes won’t start with building code. They’ll start with scope, warranties, performance criteria, and responsibility gaps.

Contract clauses to pay attention to

• Scope definition: Exactly what is to be printed? Walls only? Embedded conduits? insulation cavities?
  
• Performance specifications: What are the strength, tolerances, finish quality, water penetration, thermal performance, fire rating, etc.?
  
• Testing & acceptance: Who pays for tests? What happens if a test fails? What’s the remedy?
  
• Change orders: Printed work can make late design changes expensive. What are the costs if that occurs?.
  
• Schedule risk: Who bears the risk for printer downtime, curing time, or weather sensitivity?
  
• Indemnity and insurance: The party controlling the process likely bears process risk.
  
• Warranties: The warranties likely should be tied to measurable criteria and documented QA/QC.
  
• IP and data rights: Who owns the CAD/BIM model, toolpaths, and printer logs?
  

Practical move: Write the contract around performance outcomes + QA/QC evidence, not just “we will print the walls.”

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6) Employment & Jobsite Safety Laws: OSHA Still Applies

Whether the “labor” is humans or machines, the jobsite is still subject to OSHA and state occupational safety rules.

3D-print-specific safety concerns

• Moving machinery and pinch points
  
• Electrical hazards, generators, and temporary power
  
• Silica exposure if cutting/grinding cured printed concrete
  
• Chemical exposure from admixtures
  
• Fall protection and access during printing stages
  
• Confined space risks in printed voids or integrated cavities
  

Risk point: A novel process can mean “novel hazards.” If your safety plan doesn’t specifically address printer operation, lockout/tagout, and restricted zones, you’re exposed.

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7) Environmental & Materials Regulation: Mix Design Isn’t Just Engineering

Concrete and cementitious mixes can trigger environmental rules around:

• stormwater pollution prevention,
  
• washout containment,
  
• disposal of unused material,
  
• VOCs or chemical additives,
  
• dust and silica controls,
  
• noise ordinances and work-hour limits.
  

If you’re printing polymer-based components, resins, or composites off-site, you may also touch:

• hazardous materials handling,
  
• fire code storage rules,
  
• local environmental permitting.
  

Risk point: “We’re innovative” doesn’t excuse washout violations.

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8) Intellectual Property: Who Owns the Design and the “Toolpath”?

3D printing introduces new IP questions:

• Ownership of the architectural design and BIM model
  
• Ownership of printer toolpaths and process parameters
  
• Licensing rights if a vendor reuses a design on other projects
  
• Liability for using third-party design libraries or patented processes
  

Practical move: Define IP ownership and reuse rights upfront, especially if you plan to replicate a design across developments.

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9) Insurance and Risk Transfer: Don’t Assume Coverage

Many standard construction insurance policies weren’t written with 3D printed structural elements in mind.

Items to verify with brokers/carriers:

• General liability (GL) exclusions for “products” or “professional services”
  
• Professional liability (E&O) for design and means/method overlap
  
• Builders risk coverage for unconventional materials/methods
  
• Coverage for the printing equipment (inland marine)
  
• Subcontractor default risk if a specialized vendor fails mid-project
  

Risk point: If the printer vendor controls the means and methods but carries minimal coverage, the GC may inherit the risk in practice.

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Practical Compliance Checklist

If you want to reduce legal friction on a 3D printed construction project, use this checklist:

1. Confirm the code pathway (prescriptive vs alternative methods).
   
2. Engage the building official early with a clear approval plan.
   
3. Get stamped engineering for structural design and any novel details.
   
4. Define QA/QC and testing (mix, curing, layer bond, tolerances).
   
5. Write contracts around performance and evidence (not hype).
   
6. Clarify responsibility boundaries (design vs means/methods vs material supply).
   
7. Build an inspection plan that inspectors can execute.
   
8. Update the site safety plan for printer operations + silica controls.
   
9. Confirm insurance covers printed work, not just conventional scopes.
   
10. Document everything (logs, calibration, batch tickets, tests, photos).
    

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Where the Law Is Heading

Expect more formalization around:

• standardized test methods for printed concrete and composites,
  
• acceptance criteria for layer bonding and anisotropic strength,
  
• inspector training and special inspection protocols,
  
• clearer liability allocation between designers, printer operators, and material suppliers.
  

For now, the safest approach is to treat 3D printing like any other “nonstandard structural system”: permitted through engineering, testing, documentation, and well-written contracts.

Utah’s Residence Lien Recovery Fund: What Happens If the Fund Runs Out?

A recent notice on Utah’s Residence Lien Recovery Fund page raises a serious issue for homeowners, contractors, subcontractors, suppliers, and construction lawyers alike: available funds are “extremely limited or may be unavailable,” and it may be “highly unlikely” that resources will be available to satisfy new claims.

That warning prompts an obvious question: what happens if the Residence Lien Recovery Fund effectively runs out of money?

The answer may have significant consequences for the balance Utah law tries to strike between protecting homeowners and preserving payment remedies for those who improve residential property.

The Role of the Residence Lien Recovery Fund

Utah’s Residence Lien Recovery Fund was designed to function as part of the broader statutory framework governing residential construction disputes. In general terms, the Fund has served as a mechanism intended to protect qualifying homeowners from the full impact of construction-related payment disputes, while also providing a source of recovery in certain circumstances involving unpaid claimants.

In that sense, the Fund has been part of the legislative compromise underlying Utah’s residential construction lien scheme.

But that compromise becomes more difficult to evaluate if the Fund remains authorized by statute while lacking the money necessary to pay claims.

If the Fund Is Empty, Is the Protection Still Real?

That is the first major question.

If a homeowner complies with the statutory requirements associated with the Residence Lien Recovery Fund, but the Fund itself has no meaningful money available, can it still fairly be said that the homeowner has the protection the statute was designed to provide?

From a practical standpoint, an unfunded remedy may be no remedy at all.

That does not necessarily mean the statute disappears. But it does raise the possibility that courts, litigants, and policymakers may begin confronting the gap between the statutory structure on paper and the actual protection available in practice.

What About Mechanic’s Lien Claimants?

The second major question is just as important: if the Fund is unavailable, what happens to lien claimants?

Utah’s residential lien framework has historically involved a careful relationship between owner protections and claimant remedies. If one side of that framework becomes functionally unavailable because the Fund is exhausted, lien claimants may argue that the legal and equitable balance has changed.

That could lead to important litigation questions, including:

• whether homeowners should continue to receive the same level of statutory protection when the substitute fund remedy is unavailable;
• whether unpaid contractors, subcontractors, or suppliers may press for broader mechanic’s lien recourse;
• whether courts will interpret the statutory scheme differently in light of an empty or depleted Fund; and
• whether the legislature will need to revisit the structure altogether.

A Statutory Remedy vs. a Practical Remedy

This may ultimately become a distinction between a remedy that still exists in the statute and one that still exists in the real world.

For years, parties in residential construction disputes may have assumed that the Residence Lien Recovery Fund remained a meaningful part of the legal landscape. If new claims can no longer realistically be paid, that assumption may no longer hold.

And when a key part of a statutory framework becomes unavailable in practice, litigation often follows.

Why This Matters Now

For homeowners, the issue is obvious: they may assume there is a state-backed layer of protection that may no longer be reliably available.

For contractors, subcontractors, and suppliers, the issue is equally significant: if the Fund is no longer functioning as intended, the practical importance of mechanic’s lien rights may increase.

For attorneys and courts, this may become a developing area of statutory interpretation and policy tension.

Conclusion

Utah’s Residence Lien Recovery Fund may be approaching a critical point. If the Fund is no longer able to satisfy new claims, the question is no longer merely administrative. It becomes structural.

Will homeowners still be protected in any meaningful sense?
Will lien claimants face a remedy gap?
Or will courts and the legislature be forced to reexamine how Utah’s residential lien system is supposed to work when the Fund is no longer funded?

Those are no longer theoretical questions.

They may be the next major questions in Utah construction law.

Legislative changes to payment bond requirements on certain government projects

Utah’s 2026 legislative session introduced a change that may affect contractors, subcontractors, and suppliers working on state construction projects administered by the Utah Division of Facilities Construction and Management (DFCM). House Bill 508 (HB 508) modifies performance and payment bonding requirements for certain projects at DFCM’s discretion.

For many years, Utah law has required contractors on public construction projects to furnish both performance bonds and payment bonds, typically in an amount equal to the contract price. Because mechanics’ liens cannot attach to public property, payment bonds serve as the primary protection ensuring that subcontractors and suppliers are paid for labor and materials furnished on public projects.

HB 508 introduces a key change. Under the revised statute, DFCM may now elect not to require payment and performance bonds on certain government construction contracts. While bonding requirements have not been eliminated entirely, the law allows the agency to waive bonds on some projects that previously would have required them.

Why This Matters

Payment bonds historically shift the financial risk of nonpayment from subcontractors and suppliers to the surety company backing the project. If a contractor fails to pay, those providing labor and materials may pursue a claim against the surety.

If a project proceeds without a payment bond:

• Mechanics’ liens remain unavailable on public property
• Subcontractors and suppliers may have fewer remedies for nonpayment
• Recovery may depend largely on contract claims against upstream contractors

As a result, subcontractors and suppliers should no longer assume that every public construction project will include payment bond protection.

Practical Steps for Contractors, Subcontractors, and Suppliers

Participants on state construction projects may wish to consider several practical steps:

• Confirm whether a payment bond exists before entering into a subcontract or supply agreement
• Request a copy of the bond and verify the surety information if a bond is required
• Evaluate contractor creditworthiness more carefully when bond protection is absent
• Consider contractual protections, such as joint check agreements or shorter payment cycles

Looking Ahead

HB 508 introduces additional flexibility into Utah’s public construction procurement process. How frequently bonding requirements will be waived will likely depend on how DFCM implements the statute in practice.

In the meantime, contractors, subcontractors, and suppliers should take care to confirm whether payment bond protection exists before bidding and contracting to perform work on DFCM projects.

If you have questions about how HB 508 may affect your projects or payment rights, please feel free to contact us.

ESG Compliance in Construction

ESG Compliance in Construction: A Guide to Sustainable, and Resilient Building Practices

The construction industry is undergoing a major transformation as sustainability, safety, and transparency become central to how projects are planned, financed, and executed. ESG compliance, or Environmental, Social, and Governance compliance, might be something that a construction firm faces on its next project. It now influences bidding opportunities, investor confidence, regulatory approvals, and long-term project performance. ESG compliance could also help you better avoid any potential legal issues. 

As governments implement climate policies and owners demand greener, more socially responsible buildings, construction companies that prioritize ESG compliance could gain a critical competitive advantage.

This article explains what ESG compliance means in the construction sector, why it matters, and how contractors, developers, and owners can implement scalable ESG strategies.

What Is ESG in Construction?

ESG compliance in construction refers to the frameworks, reporting standards, and operational practices construction firms follow to demonstrate responsible environmental management, positive social impact, and transparent governance.

Unlike many industries, construction impacts ESG indicators at every stage of a project—from raw-material extraction to job-site safety to long-term building performance.

Construction ESG compliance typically measures:

• Carbon emissions from materials, transportation, and equipment
  
• Energy efficiency of buildings and construction methods
  
• Waste reduction and recycling programs
  
• Worker safety, training, and labor standards
  
• Diversity and inclusion in hiring and subcontracting
  
• Ethical procurement and supply-chain transparency
  
• Governance and risk management, including bid transparency and integrity and financial controls

Why your Construction Firm Should Care About ESG Compliance 

1. Increasing Regulatory Requirements

Governments are tightening climate and environmental rules, directly affecting government contracts and activities.

Key requirements influencing ESG compliance include:

• Embodied carbon regulations
  
• Energy-performance codes
  
• Waste diversion mandates
  
• Environmental impact assessments
  
• Green public-procurement standards
  

In regions like the EU and select U.S. states, carbon reporting may soon become mandatory for large projects.

2. Owner and Investor Expectations

Developers, municipalities, and financial institutions increasingly require ESG documentation during:

• Bid submissions
  
• RFP processes
  
• Loan underwriting
  
• Project approvals
  

Firms demonstrating strong ESG compliance are more likely to win high-value contracts and access financing with favorable terms.

3. Labor Shortages and Workforce Pressures

Construction companies with strong social practices do better at:

• Attracting skilled workers
  
• Reducing turnover
  
• Improving job-site safety
  

Worker welfare is a major ESG pillar, and compliance is directly tied to reducing costly delays, injuries, and claims.

4. Cost Savings Through Efficiency

ESG compliance encourages:

• Reduced energy use
  
• Fewer change orders
  
• Optimized material selection
  
• Less waste and rework
  

These improvements lower total project cost while increasing client satisfaction.

What are the Key ESG Compliance Factors for Construction Companies?

Environmental Criteria

Construction firms must monitor and reduce their carbon footprint. Here are some areas to start analyzing your construction firms practices:

Carbon Emissions

• Diesel equipment usage
  
• Material procurement and production (especially steel and concrete)
  
• Transportation miles
  
• Job site energy consumption
  

Tools like life cycle assessments (LCAs) and environmental product declarations (EPDs) help quantify impact.

Waste Management

• Recycling programs for steel, concrete, wood, and packaging
  
• Waste diversion tracking

Water and Land Management

• Dust and erosion mitigation
  
• Water recycling and conservation measures

Social Criteria

Social ESG components are critical in construction due to its labor intensive nature.

Key areas include:

Worker Health and Safety

• OSHA compliance
  
• Safety training programs
  
• PPE standards
  
• Incident tracking and transparent reporting on safety incidents
  

Labor Rights and Ethics

• Fair wages
  
• Anti-trafficking safeguards
  
• Enforcement of subcontractor compliance

Community Impact

• Noise, traffic, and disruption mitigation
  
• Local workforce hiring
  
• Community outreach around project activities

Governance Criteria

Governance ensures ethical business operations.

In construction, this includes:

• Transparent bidding and procurement practices
  
• Anti-corruption policies
  
• Contract and change-order management
  
• Data and cybersecurity protection
  
• Financial oversight to prevent fraud
  

Strong governance reduces risk, improves project outcomes, and enhances stakeholder trust.

How Construction Companies Can Implement ESG Compliance

1. Conduct an ESG Materiality Assessment

Identify the ESG issues that matter most in your region, project type, and supply chain—such as emissions, safety, or material sourcing.

2. Create ESG Policies and Procedures

Establish documented standards for:

• Waste sorting
  
• Emissions tracking
  
• Job-site safety
  
• Supplier screening
  
• Reporting and auditing
  

Clear procedures help ensure consistency across project sites.

3. Centralize ESG Data Collection

Use technology to track:

• Fuel consumption
  
• Waste volumes
  
• Worker safety metrics
  
• Subcontractor compliance
  
• Carbon footprint calculations
  

ESG software platforms improve accuracy and reduce administrative work.

4. Train Teams and Subcontractors

Since so much labor is subcontracted, ESG compliance must extend beyond your own employees.

Training should include:

• Site-specific safety rules
  
• Environmental goals
  
• Ethical reporting channels
  

5. Publish Transparent ESG Reports

Owners, regulators, and investors expect reporting that aligns with frameworks such as:

• GRI
  
• SASB (especially for engineering and construction)
  
• ISO 14001
  
• LEED and BREEAM sustainability indicators
  

Transparent reporting boosts credibility and improves project-winning potential.

Common Roadblocks to ESG Compliance in Construction

Fragmented Supply Chains

With dozens of subcontractors, suppliers, and vendors, ensuring consistent ESG standards is difficult. You can avoid this by requiring prequalification of subcontractors and conducting regular audits of your subcontractors, suppliers, and vendors.

Data Collection Difficulties

Job site conditions change rapidly, making accurate tracking of emissions or waste complex. Using modern digital tools simplify monitoring of these metrics. 

Cost Concerns

Some sustainable materials or technologies have higher upfront costs. However, it is important to note that long term savings, avoidance of legal issues, and competitive advantages could outweigh initial investment.

Evolving Regulations

ESG compliance in construction has evolved rapidly over the last 2 decades, and continues to change. Construction firms must stay updated on local, regional, and national environmental requirements to remain compliant.

The Benefits of ESG Compliance in Construction to your Construction Firm

Prioritizing ESG compliance has far reaching benefits for your construction firm. Beyond legal reasons to be ESG compliant, teams that prioritize ESG compliance typically experience:

• Safer job sites and reduced liability
  
• Stronger brand reputation
  
• Higher bid win rates
  
• Lower operating and material costs
  
• Better access to capital
  
• Improved stakeholder relationships
  
• Increased long-term project value
  

ESG compliance is not just a reporting requirement—it is a strategic advantage.

Conclusion

ESG compliance in construction is rapidly becoming a defining factor in winning contracts, securing financing, and operating responsibly within local communities. By integrating environmental stewardship, social responsibility, and ethical governance practices into everyday operations, construction firms can deliver safer, more sustainable, and more profitable projects.

Companies that adopt ESG principles today will lead the construction industry of tomorrow—earning trust, reducing risk, and building a more resilient future.

Crafting Commercial Construction Agreements

Before your firm begins on any large-scale building projects, it is crucial to have solid commercial construction contracts. These agreements lay the groundwork for clear expectations, risk management, and legal protection. Whether you’re an owner, contractor, or subcontractor, understanding how to craft effective commercial construction agreements is key to avoiding disputes and ensuring a successful project.

What Are Commercial Construction Contracts?

Commercial construction contracts are legally binding documents that define the roles, responsibilities, financial terms, and timeline for construction projects involving non-residential properties—such as office buildings, warehouses, retail centers, and industrial facilities. They serve as the blueprint for project execution, outlining everything from the scope of work to dispute resolution procedures. A well crafted commercial construction contract provides the necessary components of a successful project:

Clarity of Scope: Ensures all parties agree on the specific deliverables and avoid scope creep.

Risk Management: Allocates financial and performance risks, reducing the likelihood of costly disputes.

Legal Protection: Provides a contractual framework to enforce rights and remedies if obligations aren’t met.

Project Efficiency: Establishes deadlines, payment schedules, and quality standards to keep the project on track.

What Should be Included in a Commercial Construction Contract?

A comprehensive commercial construction agreement should include the following core components:

1. Scope of Work
   • Detailed description of tasks, materials, and deliverables
   • Reference to drawings, specifications, and schedules
2. Payment Terms
   • Contract price or pricing method (lump sum, cost-plus, GMP, etc.)
   • Schedule of values and progress payment milestones
   • Retainage provisions
3. Timeline and Milestones
   • Project start and completion dates
   • Interim milestones with associated deadlines
   • Liquidated damages for delays
4. Change Orders
   • Procedures for requesting and approving changes
   • Pricing adjustments and timeline impacts
5. Termination and Dispute Resolution
   • Grounds for termination by owner or contractor
   • Mediation, arbitration, or litigation clauses
   • Governing law and venue
6. Insurance, Bonds, and Warranties
   • Required liability, builder’s risk, and workers’ compensation insurance
   • Performance and payment bond requirements
   • Warranty periods for workmanship and materials
     

The Different Types of Commercial Construction Contracts

Choosing the right contract type ensures that the right incentive structures are in place.

• Lump Sum (Fixed Price): One total price for the entire project; contractor bears cost overrun risk.
• Cost-Plus: Owner reimburses actual costs plus a fee; transparent but less predictable final price.
• Guaranteed Maximum Price (GMP): Cost-plus with a ceiling; savings shared, overruns capped by contractor.
• Design-Build: Single entity handles design and construction; streamlines communication and accountability.
• Unit Price: Pricing per unit of work (e.g., per square foot); useful for projects with repetitive tasks.

Frequently Asked Questions

Q1: What makes a GMP contract different from a lump sum contract?
A GMP (Guaranteed Maximum Price) contract reimburses actual costs plus a fee, with a cap on the total. In contrast, a lump sum contract fixes the price upfront, leaving the contractor responsible for any cost overruns.

Q2: How should change orders be managed in commercial construction contracts?
Include a detailed change order process: written request, impact assessment on price/time, owner approval, and formal amendment to the contract before work begins.

Q3: Are standardized contract forms like AIA documents sufficient?
Yes, AIA and ConsensusDocs provide industry-recognized templates. However, always customize key provisions—such as insurance requirements and dispute resolution—to fit your project’s jurisdiction and complexity.

Q4: What insurance is typically required under these agreements?
Common requirements include general liability, builder’s risk, workers’ compensation, and professional liability (for design-build), plus performance/payment bonds as applicable.

Crafting thorough, balanced commercial construction contracts not only safeguards all stakeholders but also fosters trust, efficiency, and timely delivery. Babcock Scott and Babcock attorneys are experts in crafting contracts that deliver for our clients. Reach out through the form below to get in touch today.

Attorneys Recognized by Super Lawyers® 2025

Babcock Scott & Babcock, P.C. is proud to announce that many of its attorneys have been named to the 2025 Mountain States Super Lawyers® and Rising Stars lists. As noted on Super Lawyer's website, lawyers are selected to these lists based on a peer nomination and evaluation process. These designations recognize attorneys who have earned significant peer recognition and demonstrated outstanding professional achievement.

Bob Babcock, Brian Babcock, Justin Scott, Cody Wilson, and Jeff Handy were all recognized as Super Lawyers in construction litigation. Andrew Berne was also recognized as a Rising Star in the construction litigation.

Congratulations to these attorneys.

Construction Law Update: Utah Court Clarifies Limits on Withholding Payment

A recent decision from the Utah Court of Appeals reinforces the importance of honoring payment obligations in construction contracts. The case, Globe Contracting LLC v. Hour et al., 2025 UT App 98,
involved a dispute between a contractor, Globe Contracting LLC, and a property owner, Dr. Raymond Hour, over the construction of a chiropractic office in Salt Lake City.

Key Findings

• Material Breach by Owner: The court found that Hour unjustifiably withheld three progress payments, constituting a material breach. It emphasized that in construction contracts, few breaches are more serious than nonpayment to contractors and suppliers.
• Contract Terms Matter: The contract listed four specific reasons for withholding payment—none of which included delays. The court found no other provision allowing Hour to withhold payment due to time delays.
• Timing of Defects: Alleged workmanship issues arose after Hour had already stopped paying. He did not notify Globe until late September 2016 and failed to give Globe the opportunity to correct the issues, as required by the contract. These issues could not justify withholding earlier payments.
• Good Faith and Fair Dealing: Hour was also found to have breached the covenant of good faith and fair dealing.

Damages and Fees

• Damages Awarded: Globe was awarded $61,901.92 in damages and was permitted to foreclose on the property based on its construction lien.
• Attorney Fees: The trial court awarded Globe $98,531.00 in attorney fees. Hour challenged the award, particularly the inclusion of travel time for Globe’s out-of-town attorneys. The appellate court remanded the issue, requiring the trial court to explain why awarding travel-related fees was reasonable.
• Prejudgment Interest and Costs: The court reversed these awards, ruling that the statute cited (Utah Code § 13-8-5) did not apply. The matter was sent back for reconsideration under other legal grounds.

Why This Matters

This case highlights the risks of withholding payment without clear contractual justification. Courts will closely examine the timing and basis of such decisions, and failure to follow contract terms can result in significant liability.

Need Help with a Construction Dispute?

If you're facing a similar issue—whether as a contractor or property owner—our firm is here to help. We’re committed to building solutions whenever and wherever we’re needed.

Utah Construction: Navigating the Next Decade

Utah’s construction landscape is undergoing significant transformation, fueled by major projects and a surge in high-tech industries. Babcock Scott & Babcock, P.C., was proud to host a recent industry forum roundtable to discuss the future of construction in the state over the next ten years. From addressing the labor shortage and power constraints to managing supply chain challenges and fostering better collaboration between stakeholders, participants delve into the issues shaping the industry’s trajectory in Utah and offer insights into successfully navigating the decade ahead.

The roundtable was moderated by Bob Babcock and Cody Wilson. They were joined by the following:

• Rick Papworth, General Manager, JT Steel
• Jerry Taylor, President, JT Steel
• Greg Fix, Manager, Forge Contractors
• Eric Stratford, Marketing Director, R&O Construction
• Jeff Cochran, Vice President, WW Clyde
• Donavon Minnis, Owner,Engage Contracting
• Bob Babcock, Attorney, Babcock Scott & Babcock, P.C.
• Scott DeGraffenried, Vice President,Jacobsen Construction
• Tim Conde, Director of Legal Affairs,Okland Construction
• Cody Wilson, Attorney, Babcock Scott & Babcock P.C.
• Ryan Godfrey, Senior Vice President, Sure Steel
• Brett Nielsen, President, Whitaker Construction

Portions of the industry forum roundtable were published in the Engineering News-Record March magazine. A complete transcript of the roundtable is provided below.

CODY WILSON: We are hearing a lot about several large projects that continue to transform Utah. These projects include: The Point in Draper, Smith Entertainment Group’s plans at the Delta Center, and plans for the Major League Baseball stadium. From this group's point of view, what does the future of construction look like in Utah in the next ten years?

JERRY TAYLOR: It's wide open. I've been in meetings with our Governor, and they see a lot of high-tech jobs coming in with a lot of construction needed. And it's slated for The Point in Draper and into Utah County.

TIM CONDE: The projects coming too are big projects. We laugh in our office that a $100 million job used to be a big deal, but now they're a dime a dozen. We're seeing a lot of big projects coming our way. These projects bring more complexity and more demands. The Utah market is changing and we’re becoming more attractive to a lot of bigger developers.

JEFF COCHRAN: At a seminar, the UTA was discussing the upcoming Olympics. The UTA’s discussion was less about what are we doing to prepare for the Olympics and more about what we are doing to be prepared generally. It was about what we're going to do to build our industry and our economy as opposed to building for an upcoming event.

TIM CONDE: Utah is a hub for innovation and technology. In addition to the commercial development that's going on, especially around downtown, these technology industries could bring datacenter or semiconductor mega projects. These mega projects bring different risks and labor force needs that we need to be preparing for. Or else these projects will go to people outside of Utah. And we want to keep everybody here busy.

ERIC STRATFORD: During my career I have never been so comfortable with the future. With these large projects, it's easy to say, in the next ten years, there's going to be a lot of work. There's maybe not even enough labor force to perform all of that work.

CODY WILSON: What are the challenges with all of the work coming in the next ten years? You mentioned risk. You mentioned labor force. Are there challenges other than risk and labor force? And then let's talk about how we deal with those challenges.

RYAN GODFREY: Power needs, especially in the technology sector. Specifically, whether these technology companies can get the power that they need to support their operations. We've seen projects put on hold because of power constraints.

TIM CONDE: We've seen the same power concerns. People who want to create a technology hub, whether it's a datacenter or something else, get down the road and Rocky Mountain Power says, "There's not enough power."

BOB BABCOCK: Are we making headway with our high schoolers?

BRETT NIELSEN: We're making small progress. For the longest time construction was looked at as just swinging a hammer. Now when you look at our businesses there is an ac-counting, engineering, legal field, and many other fields within the construction industry. This takes care of the professional side of construction. The craft side of construction is where there's still a struggle. There’s a little bit of movement towards trade schools versus traditional four-year colleges. And hopefully that's going to start bringing more craft workers into our field.

JERRY TAYLOR: We have a lot of older welders. Now, we need the younger generation that can run the technology, that can run the machines. There are automatic welders that the older welders don't pick up on as much. That's why we need the younger generation to come along.

RYAN GODFREY: Leveraging the technology side of construction is going to help attract people to the industry. From an iron worker’s perspective, it's tough work. It requires long hours, fast schedules, and a tough work-life balance. That becomes a challenge for people wanting to enter the industry. Comparing it to other industries, such as technology, construction isn't as sexy. That's a challenge we have to face.

TIM CONDE: This State is doing a better job at encouraging districts to have programs. Many of us are involved in getting high school students on projects and showing them the different aspects of construction. They're swinging hammers and welding steel, which is important. We have to bring those potential people up through the ranks. But there's also the management side of construction that people just don't understand. This generation hungers for career development. They want to see the path. And if they can buy into the path, then they can buy into the profession. It's up to us to create that career development and then give them the tools and the resources to take each of those steps.

ERIC STRATFORD: Every one of us at some point was introduced to something in construction that enticed us to stay in it. I liked swinging a hammer and I liked learning how to do things. I didn't understand that there were so many different opportunities in construction. Somehow, we've got to, one, help the youth have that ah-ha moment with construction. And then, two, show them what is available to them.

TIM CONDE: That ah-ha moment is brilliant. We've all had those. We must create those for the next generation.

ERIC STRATFORD: I sat on an advisory panel for the state CTE program. Our State and educators care so much about that. They need some advice from us and they need our participation in those programs. They need resources and people, like us, with real world knowledge to come in and be guest speakers and teach them.

CODY WILSON: Let's talk about supply issues. There's been talk of large tariffs now with the new administration coming in. What are some of the challenges that you guys are forecasting for availability of materials to build these large projects coming up considering material shortages or tariffs or other challenges that you're seeing?

GREG FIX: Electrical gear and equipment is a challenge right now to have supplied in a timely fashion. Other materials in the duration of a given project, especially the mega projects, haven't been as difficult. Proper planning and having owners, developers, and the architectural side understanding the nature of their project and some of those long-lead procurement items can help. Either the owner needs to bring on the contractors earlier so that they can help in the procurement of those materials or they need to procure them themselves. Having that thought process ahead of time and proper planning on the front side sure makes that project go easier on the backside.

JEFF COCHRAN: There’re some Buy America clauses that can definitely impact the delivery method, where it is manufactured, and delivery times. We’ve definitely seen that electrical components are a challenge.

RYAN GODFREY: What we've seen from some of our clients, in regards to electrical equipment and other mechanical equipment coming from overseas to the United States, is that they are buying the equipment way in advance. They’re trying to get ahead, to make sure that they’ve got the electrical equipment or the mechanical equipment to support their builds. It is important though that we make sure that we're looking at tariffs, the trucking, the port issues or whatever it is so that we can deliver on the commitments that we’ve made.

JERRY TAYLOR: We have a tendency now to jump on and order the steel immediately once we get a project. Then we have to turn around and store it sometimes for several months which if the job goes on hold, it hurts us.

BRETT NIELSEN: The big impact that the industry is going to see because of tariffs are cost escalations. The risk right now is with our current contracts that we may not have bought materials for which could increase in prices . It’s going to take a little bit of time to get through that transitionary period. Moving forward you're going to see the cost of construction going up as those are starting to be incorporated into our estimates.

TIM CONDE: One thing about Utah is that people give each other the benefit of the doubt. There’s been decades of trust built up, that you can cash that chip in a COVID scenario or in an unexpected tariff or escalation scenario, where the owner also says, "I get it. Let's work together. I don't want to be taken advantage of, but I don't want to take advantage of you either. Let's figure it out.” If we can maintain that level of trust and transparency with each other, we can get through it. It’s a unique market in that regard.

BRETT NIELSEN: Some of the long-term relationships are that way. As the market is grow-ing, we are seeing new players. We're seeing new developers, new owners, people that may not have those relationships and the trust that's built there. There’s risk there.

SCOTT DeGRAFFENRIED: There is a long and storied trust here in Utah. But, we do have a lot of new players coming in. And even within our own company, we're having to change paradigms and how we interact. At many levels we've had to up our game and sharpen our tools as these new developers come into town and we're contracting and working through problems with them. I like the challenge because it makes us all better. We can mitigate a lot of these risks with properly constructed contracts and also managing those relation-ships at the same time.

GREG FIX: There's integrity in what we do. It's such a small community of networked people that have worked together and know each other, that that idea of the back east mentality of bid shopping doesn't work here. And it won't work here. It's not well received.

DONAVON MINNIS: As far as contracts are concerned, I think we all suddenly realized what all that jargon in the contract meant when COVID happened and how we had to utilize it. Not only that, but then we had the conversation with our clients as to why certain language is in the contract. It is important to forward think when drafting our contracts and ask, "What do we need to have in here in order to protect ourselves?" And not only protecting ourselves but educating our owners on what these protections mean now and what they could mean. It always goes over easier when it's not a surprise and you already had that conversation. For me I'm trying to educate the owners on the projects on the front side. Ex-plaining what could be coming and how we're going to mitigate our risk.

SCOTT DeGRAFFENRIED: I'd used the phrase "force majeure" for many years prior to COVID. But then, I had to figure out what it actually meant when it all came to fruition. And then, what are escalation clauses? And how do these play out? One thing I learned through that whole process is the importance of properly and narrowly constructed clauses. Obviously, I'm speaking from a general contractor bias but, if some of those clauses are too broadly constructed, an escalation clause could be viewed as an open checkbook. Owners obviously don't view it as an open checkbook. A broadly constructed escalation clause can create contention.

RYAN GODFREY: As a subcontractor, that all gets passed down to us. We don't have a lot of wiggle room. For us, being able to work with contractors that are paying attention to those details, and helping mitigate that on the sub’s behalf, is so important to us. We're put in a very difficult position, especially buying steel. If the contractors aren't forward thinking it becomes a problem for all of the subcontractors. We appreciate those contractors that are out there having those difficult conversations with the owners to make sure that everybody beneath the contractor has some sort of protection to be able to help ensure that we all don't get stuck with something that was foreseeable.

CODY WILSON: Do you foresee some challenges, though, with that given the influx of new development -- or new groups, new owners coming into the state?

JEFF COCHRAN: We can’t specifically deal with it. Each business has the opportunity to function how they will. We, as an organization, are not going to change how we function and do that. And hopefully our clients and owners that we work with see the value in that. But I can't speak for everyone.

GREG FIX: As an owner coming from out of state goes from one contractor to another, hearing the same tune, they’re going to either force a contractor to change or they're going to have to realize they need to change. It’s a factor of how we, as the contractors, carry out our business.

SCOTT DeGRAFFENRIED: We have an obligation to make ourselves better. We have to be more and more astute as these new players come into the market. For example, I was recently negotiating an insurance program with a -- I'll say a back east-based developer. They sent over their OCIP manual to me. It was riddled with new contractual provisions that were not present in the contract that we had just finished negotiating. I marked it all up and I said, "Hey, you can't slip all this in by way of your OCIP manual because that's going to be part of the contract document package and everybody's going to be relying upon that." And I got this gentleman from back east yelling at me, saying, "Well, nobody ever looks at these things. Nobody ever edits these things. Why are you making a big deal of this?" I responded, "Well, I have to make a big deal of this." Don't be afraid of those difficult conversations. A lot of people shy away from those conversations because they don't want to deal with the is-sues. But, on the back end of it, if you get it wrong, it's a bigger price to pay. In the end, I do think they respect you more if you meet them on the field of battle in a very respectful sense.

JEFF COCHRAN: And no one ever looks at the contract until it is time to look at the contract. And then you're splitting hairs. If you're going to have a difficult conversation, up front is the very best time to have the difficult conversation.

BOB BABCOCK: I never had a contentious contract negotiation where in the end we didn't shake hands and walk away. It’s best to have those conversations up front.

JERRY TAYLOR: As a subcontractor, you can call Okland or their attorney or Jacobsen or whoever and negotiate through the contract so that you both understand it.

BRETT NIELSEN: We all have the right to say no to do business with either an owner or a subcontractor. In fact, you can usually tell during the negotiation of the contract if it’s going to be a bad working relationship. We actually have said no but not everybody can afford to say no. They may need the work. But, at the end of the day, I don't like paying for the privilege of building a project. The goal is to make money on it. And oftentimes those negotiations do set a tone for how the project will go.

SCOTT DeGRAFFENRIED: We should all be risk managers. That's definitionally what a con-tract is. It's risk shifting. I’m entrenched in my position when it comes to these things, but I've had to learn to become sympathetic at some level to a lot of these developers. These are pro forma driven projects and these guys are putting a lot on the line. We can try manage that risk as best we can but, we have to tolerate some of it. And that's been difficult for me to accept. But, there is always risk in business. We have to put ourselves in their shoes to a certain degree to understand where they’re coming from. Because without these projects, none of us have jobs. So, it's that balancing act.

ERIC STRATFORD: But that’s what’s so great about Utah. We have the ability to put our-selves in other people's shoes. You can't just shift risk away the entire time because you have to have some sort of appetite. We get to determine what that appetite is. The front end of negotiations is when you have to put yourself in somebody else's shoes and see it from their perspective. That's how you get deals done.

RYAN GODFREY: I think from a sub’s perspective we have comments during the contract negotiations, typically with the contractors. We’ve found that some contractors don't want to have conversations about understanding the provisions that they're giving to us. Just like you’re collaborative with the owners or developers, the subs are expecting a similar type of relationship where we can actually sit down and have a conversation about the provisions. Some people view that as contentious. But, we're clarifying all this so that we can make sure that we're living up to the expectations that you, as the contractor, are putting on us. I’m curious on how you as contractors view that?

JEFF COCHRAN: Something we can do, and you can do on your end, is having a conversation about terms that change the price ahead of time. Having these conversations during the bidding process, through some type of scope and discussion, seems to help mitigate that challenge in a more significant way.

SCOTT DeGRAFFENRIED: I very much appreciate it when a subcontractor wants to have a very sophisticated conversation on the subcontract. I've had that opportunity many times and built some good relationships. It helps the parties get a sense of both parties' philosophies and attitudes. It’s a beneficial process personally.

RYAN GODFREY: Setting expectations is so important for us, as subs, to make sure we know what is expected. We don’t like surprises just as much as the owners don’t like surprises. Just making sure we're all on the same page is so important.

GREG FIX: An issue that we're dealing with as general contractors, is when owners and developers are holding off on starting a project, and then the market shifts or changes and they decide they got to go. They get the architect on board. Push them to complete a six, seven, eight-month design in four months. And then have the contractor put together esti-mates based off of incomplete documents. Then there's problems during the course of construction, and the owner is wondering, “Why are we having this problem? Why didn’t you catch that, Mr. Contractor?” How do we make a shift in the mentality of the owners to give the proper time needed for good design?

SCOTT DeGRAFFENRIED: From a contractor's perspective, get in as early as possible to help find the flaws.

JERRY TAYLOR: How many times, when you’ve sat down with the architect and engineer, have you heard the comment “Well, that’s not what I had in mind.” Well, what did you have in mind? It’s a real concern as a subcontractor. The job would be faster and way less expensive if the architect had adequate time to put into their drawings.

CODY WILSON: So, I'll flip the question then, Greg, what is Forge doing to try to mitigate that problem?

GREG FIX: I always try and encourage the owners, even before I started at Forge, to give proper time to the architects. Let's give them one more month. If you give them one more month, that will allow us to have better details, better coordinated drawings. The architects focus so much on what they're doing that coordination among their consultants is lacking. What I think the owners don’t quite understand is that a little extra time will save them money in the long run. It might cost them a month or two upfront, but with those details in the design the subcontractors don't have to make assumptions and guesses and inflate their price to cover themselves for potential problems down the road.

ERIC STRATFORD: It’s a big financial risk for developers if they don't push us to go quicker. So, from their standpoint, those change orders down the road are less of a risk than going to market. I would agree wholeheartedly that we are sometimes not giving our architectural community partners enough time to do a good doublecheck.

DONAVON MINNIS: Of all the people in our industry, architects are the best at saying, "No. I am tapped out. We can't take on another project." They're delegating more design off onto the contractor, who then pushes it off onto the sub to shop drawings and design it on the fly because they don’t have time to put it together. These projects are moving so fast that it's just a chain reaction. There is not enough time and resources out there on even the design side to take on the amount of work that we're doing right now. Inherently, change orders happen because our estimators are estimating -- we're only getting two in ten projects that we're bidding. So, the estimators are just ripping through them, they're not evaluating or catching every little detail. It's just this chain reaction of work.

JEFF COCHRAN: Depending on the project, something that you could do is begin working on a part of a project while also allowing time for the rest of the design to be completed. We have found a lot of success in that. Allowing work to start in a meaningful way yet allowing other components of the design to be finished.

SCOTT DeGRAFFENRIED: As the general contractor, you're right in the middle of the rela-tionship between the owner and the architect. When there are deficiencies in design, the contractor unfortunately ends up bearing a lot of the brunt of those design discrepancies. You don't want to create conflict with your owner by saying, "Your architect is not keeping up.” As a contractor, it's learning how to foster that relationship to where you don’t have to atone for all of those sins, so to speak, but still maintain that relationship and allow both parties to carry out their roles. It's a real challenge.

BOB BABCOCK: I've been talking to design professionals for 40 years about pushing back and saying, “We should be paid more so we can do more a comprehensive design. The extra percent you pay us is going to save you so much more in design costs and project time and all kinds of things that can be done if they are able to do a better design.”

GREG FIX: But what happens with that is that risk has now shifted over onto the contractor’s plate. And we've just taken it on.

BOB BABCOCK: My point is you guys can be an advocate for them as well, give them more time, pay them more money. We want a better design. Because it’s going to translate into savings in construction dollars a ton if you do.

ERIC STRATFORD: On the one hand I'm a little grateful because it's made us really good in pre-construction services. On the other hand, I feel like we're taking on design risk that we don’t need to. I want to be careful how I phrase this, but it's almost given the architectural community a way out.

BOB BABCOCK: I know. To say, “Let's design it. Oh, we don't have time to do it. We’ll delegate to the contractor and the sub. They can sort it out. They can figure it out.” And that may or may not be a good decision for the project. I know that's a growing trend, so I’m curious as to what you guys see in delegated design in this marketplace.

TIM CONDE: Delegated design and design-build, those are both approaches that are trend-ing up. Utah doesn't have as much design-build. But I suspect it will go more that way. Our design partners figured out more discipline to say, "We can't do it," but their liability caps are very different from what we all have. They’ve figured out a way to be very strong with owners and cap their liability at their fee. It’s unusual to be able to do that. We are taking on more liability without the benefit of those caps.

ERIC STRATFORD: We’re looking at additional professional liability insurance because we're becoming architects essentially.

SCOTT DeGRAFFENRIED: One thing I wanted to bring up is the design-build delivery system versus the delegated design. I like the design-build because you're going into it very intentionally. You understand the risk you’re assuming. Oftentimes those can be very fruitful projects. The delegated design aspect of it, where oftentimes it's not even realized until it's slipped in, is a bit more problematic because people start pointing fingers and scrambling.

GREG FIX: For years fire sprinklers were a designated design. And the exterior metal wall assemblies are a delegated design with the engineering on the exterior wall. And I've always wondered, why does the structural engineer not cover that? But, that's now a delegated de-sign.

SCOTT DeGRAFFENRIED: One thing on the design side, switching topics a little bit, but I’m seeing a lot of national architects slipping stringent contractual provisions into the specifications. I don't know if any of you are seeing any of that, but it seemingly is becoming more and more prevalent and can be problematic.

CODY WILSON: It's definitely more prevalent. And the problem with that is you have an estimating department that’s cranking through these and they're not catching those things and those spec provisions or those clouded drawings or just different things where those things are slipped in. And then it's coming back later and that's a real problem.

BOB BABCOCK: I’ve sometimes told contractors “Do you want us to go do a quality control on the design before we do this?” We'll charge you a fee to go through all the design and look for all the inconsistencies and point them out. We’re going to find them all, but you're going to pay us for spending time doing it. Or, you can have your designer do it, who should have been doing it in the first place, because they've been working on it for many months. It's a provision that's not a very good risk.

GREG FIX: I don't think the design side problem is the architects. I think it’s on the owners that are inflicting pressures on them to get the design done faster. Because yes, pro formas are on the line, their profitability, they want to hit it at a time when the market is just right for the project to open up. I think they should have started three months before and they aren’t.

BRETT NIELSEN: I don’t know a lot of how the general contracting community handles alternative delivery. But, from a civil contractor’s perspective, those are some of our most successful projects, when you're able to come together and collaborate. Alternative delivery such as CM/GC, design-build, and the different methods that they're coming up with. And we've been fortunate to be on a number of those projects. And we continue to educate our owners of those contracting methods to be able to help them have better, successful, collaborative projects. I don't understand how it fully works within general contracting. But, for civil contracting, alternative delivery really does help with a lot of those issues that we're talking about.

SCOTT DeGRAFFENRIED: Most of our work is CM/GC. Definitely our preferred approach. Or design-build. You can control and mitigate a lot of these issues that we're talking about here through that process.

JEFF COCHRAN: In the heavy civil industry, that has not been the standard in the past. It's been hard bid for just decades and we're seeing that change. That’s our preferred way to do business—when you can sit down and collaborate with an owner.

ERIC STRATFORD: While these delivery methods are super advantageous for many pro-jects, we've almost seen the pendulum swing so far on some projects that don’t warrant it. I'm talking about the smaller projects that we do. The best thing that our ownership can do is understand the different delivery methods and the pros and cons of each and choose the one that is best suited for the project.

CODY WILSON: So, what can the industry do better in the next ten years? It sounds like working collaboratively will help a lot of different parts of the projects. But, what else can we do to make the industry better?

ERIC STRATFORD: The top one is skilled labor. We need a labor force that can sustain all of the work that's coming. When I say, ‘skilled labor’, I'm really looking at largely the subcontracting community and having the labor to man the projects that we're doing and to get them done in a timely manner.

RYAN GODFREY: Leveraging technology is something that's going to continue to be very important. We're starting to see technology that's going to help us be better from our shops to the field. Leveraging that technology in ways to overcome some of the labor shortages is going to be very important.

CODY WILSON: Do you think that's a way to get more of the younger generation into construction-to help them understand that they don't have to be involved in making video games if they want to be in tech, but they can do construction still. They can make good money doing construction tech type stuff.

RYAN GODFREY: Yeah. I think that's going to be huge.

GREG FIX: The AI world is going to be interesting to see how that works within our construction world. We have estimating tools right now where it will scan the documents and do takeoffs for you. It’s a matter of that leading edge versus the cutting edge in how to utilize that technology for the best use for us.

BOB BABCOCK: How about pre-assembled things? I'm curious what the future looks like for the pre-assembly, modular, or different types of construction to speed up things.

TIM CONDE: Look at the prison. Those cell units were built in Northern Utah, put on trucks, and brought down and craned into place like Legos. From a safety and efficiency perspective, it makes a whole lot of sense. It's just a matter of finding the right way to apply those things.

SCOTT DeGRAFFENRIED: At a presentation on new modular construction there were 15-story buildings being built out of shipping containers. These units come basically fully furnished and were stacked into place like Legos. Speed to market was off the charts when it came to some of these innovations. Technology is key.

CODY WILSON: Posing another question. I’ve sat in many of these roundtables or other things where we've talked about labor issues for five, six, seven years. Are we just talking about it or is it getting better? Are the things we’re trying to do helping with the labor pool? Or has it been just talk, and there's some things we really need to change and do better?

TIM CONDE: One thing that our industry has done better over the last seven, eight years is getting women into the industry. From Okland’s perspective, that's been a priority. Our per-centages have gone up and up and we've grown as a company in positive ways because of it. But that's a huge untapped resource—getting women into trades and into project management. We just hired our first woman executive. Jacobsen is doing a great job in that regard, too. We can do better getting women into the industry. I do think that's where needles have moved in certain regards. It has to continue to be a priority.

SCOTT DeGRAFFENRIED: As these projects become more demanding from a time component and bigger and more complex, we owe it to our trade partners and our employees to be as safe as possible. There are technologies out there that are advancing the cause of safe-ty. We're looking at new philosophies of ‘nothing hits the ground.’ You can suspend all your cords overhead now. I'm sure all of you have been on jobs where there are so many cords on the ground it’s just a hazard waiting to happen. We're working with a joint venture partner back east. They have a ladder last philosophy. You don't use a ladder unless there's no other means of accessing something. I think as we become more innovative from a safety perspective and can demonstrate that to those we're trying to entice to come in our industry, it will have positive effects as well.

GREG FIX: And that's the importance of training and communication. We can get better within our industry of communicating within our own ranks by training and helping educate others to understand the importance of safety. And then communication to our trade partners and how we can work together to accomplish more. The old mentality of a boot-in-your-butt general contractor coming down on the subcontractor just doesn't work. It's not the right approach. It's a team, joint effort, collaboration that really gets a project completed. Another concern that I have is, have we conditioned our children to think that menial labor is beneath them? That entitlement feeling of our youth is real. Have we not properly taught them how to work?

BOB BABCOCK: We have a very challenging philosophy. We want the trade guys but not our kids. But, the industry has changed in ways, especially in terms of technology and the things that can be done. So many more things can be done by robots and you need sophisticated people to operate all those things. There’s a lot of great opportunities. It’ll take us awhile to get there. I hope that our people will be a voice of reason and not be quiet. There are too many loud voices that are looking for unreasonable solutions. They don't under-stand the economic reality and what it all means.

CODY WILSON: We had a good discussion. I appreciate all of you participating and being willing to come and sit down and have these conversations. I think they're important. I think it helps the industry as a whole to have those. I think it's good that we have you all here as leaders of that industry to put those points out there in front of everybody else. So, appreciate it.

JERRY TAYLOR: Our industry has great jobs, great opportunities for young and old alike. And if people want a future, get involved. Come help us build America. Come help us build Utah.

Your Guide to the Utah State Construction Registry

The Utah State Construction Registry (USCR) is an online system designed to facilitate the filing and tracking of construction-related documents. The USCR is intended to streamline communication among property owners, contractors, subcontractors, suppliers, and other stakeholders involved in construction projects in Utah. One of the main goals of the platform is to improve transparency and ensure that all parties are aware of the important notices and filings involved in construction projects.

Who Can Use It?

The SCR is designed for use by:

• Property owners
• General contractors
• Subcontractors
• Material suppliers
• Lenders
• Design professionals

What Problems Does the Utah State Construction Registry Solve?

The SCR addresses several common issues in construction projects:

• Lack of transparency: Ensures all parties are informed of key project milestones and filings.
• Payment disputes: Helps track preliminary notices to prevent disputes over payments.
• Legal compliance: Ensures compliance with Utah state laws regarding construction notices and liens.

Anyone with a utah.gov login can access the registry, visit the Utah State Construction Registry website, and hit login. Or if you do not know if you have a login, you can hit get started to learn more.

Guides for Contractors and Other Users

The SCR website provides guides for contractors and other users, including step-by-step instructions on how to file various notices and liens.

What Notices Can Be Filed  on the Utah State Construction Registry?

Notice of Commencement

• This notice is filed by the owner of a public project or general contractor to signify the commencement of a public construction project. A notice of commencement is only filed for public projects.

Preliminary Notice

• This notice is filed by general contractors (on private projects), subcontractors, and material suppliers, and other stakeholders to inform the property owner or and general contractor of their involvement in the project. It helps preserves protect their right to file a lien if they are not paid.

Notice of Preconstruction Services

• This notice is used by professionals providing preconstruction services, such as design and planning, to ensure they are recognized as part of the project and preserves their right to file a lien if they are not paid.

Notice of Construction Loan

• This notice is filed by lenders to inform all parties that a construction loan has been secured for the project. It helps ensure that everyone is aware of the financing involved.

Notice of Completion

• This notice is filed by the property owner or general contractor to officially declare that the construction project is complete. It marks the end of the project and establishes a deadline for parties to file a lien.

Filing a Preliminary Notice in the Utah State Construction Registry

Filing a preliminary notice is an important step to secure your right to payment. Here’s a brief summary of the process:

1. Log in to the USCR: Access the USCR website and log in with your credentials.
2. Enter Notice Information: Fill in the required details about your involvement in the project, including your role, the type of work or materials provided, and information regarding the person with whom you have a contract.
3. Submit the Notice: Review the information for accuracy, pay the required filing fee, and submit the notice. You will receive a confirmation email once it is filed.

Filing a Construction Lien in Utah

If you have not been paid for your work or materials, you may need to file a construction lien. Here’s how to do it:

1. Prepare the Lien Document: Gather all necessary information, including the project details, amount owed, and your contact information.
2. Record the Lien: Record the lien with the county recorder’s office in the county where the project is located.
3. Notify the Parties: Ensure that all relevant parties, including the property owner and general contractor, are notified of the lien filing.

By following these steps, you can use the SRC to ensure all parties fulfill responsibilities outlined in the initial construction contract.

Babcock Scott & Scott, P.C. Advantage:

Navigating the Utah Construction Registry platform can be complicated and you want to ensure that you are filing and submitting the correct information and forms. The attorneys at Babcock Scott & Babcock, P.C. are here to help ensure that you get paid for the hard work that you have put into a job!