Late Fees on Invoices in Utah
What Utah contractors and small businesses need to know about charging late fees, interest rates, prompt payment laws, and mechanics lien deadlines.
Max Interest Rate
2% per month (24% per annum) on construction; 10% default
Small Claims Limit
$11,000
Small Claims Court (Justice Court)
Mechanics Lien Deadline
180 days from completion for GCs; 90 days for subs
Utah Prompt Payment Act
Utah Prompt Payment Act, Utah Code § 15-6-1 et seq.
Utah requires payment within 30 days on public and private construction contracts. The Prompt Payment Act provides 2% per month interest on late payments.
Late fee rules for Utah invoices
Utah has one of the strongest prompt payment protections in the country — 2% per month interest plus attorney fees on late construction payments.
Utah's Prompt Payment Act is one of the most aggressive — 2% per month on late construction payments. The default legal rate is 10% per annum. No general usury cap.
Important disclaimer
This page provides general information about Utah late fee rules. It is not legal advice. Laws change, and your specific situation may have unique factors. For disputes involving significant amounts, consult a licensed attorney in Utah.
Demand letters and mechanics liens in Utah
Utah requires a Preliminary Notice within 20 days of first furnishing to preserve lien rights. A demand letter is not required but is recommended.
Mechanics lien deadline: 180 days from completion for GCs; 90 days for subs. A Preliminary Notice must be filed within 20 days of first furnishing.
Sample late fee clause for Utah invoices
“Payment is due within the terms specified above. A late fee of 1.5% per month (2% per month (24% per annum) on construction; 10% default maximum per Utah law) will be applied to all balances remaining unpaid after the due date. Pursuant to the Utah Prompt Payment Act (Utah Code § 15-6-1 et seq.), the undersigned reserves all rights to pursue collection including but not limited to mechanics lien filing, small claims action (up to $11,000 in Small Claims Court (Justice Court)), and referral to collections.”
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Start Free TrialFrequently asked questions — Utah
What is the maximum late fee I can charge on an invoice in Utah?▾
In Utah, Utah's Prompt Payment Act is one of the most aggressive — 2% per month on late construction payments. The default legal rate is 10% per annum. No general usury cap. Always disclose late fee terms in your contract or invoice before work begins.
Does Utah have a prompt payment act?▾
Yes. Utah requires payment within 30 days on public and private construction contracts. The Prompt Payment Act provides 2% per month interest on late payments.
What is the small claims court limit in Utah?▾
The small claims court limit in Utah is $11,000. Claims are filed in Small Claims Court (Justice Court). You generally do not need an attorney for small claims.
How long do I have to file a mechanics lien in Utah?▾
In Utah, 180 days from completion for GCs; 90 days for subs. A Preliminary Notice must be filed within 20 days of first furnishing.
Do I need to send a demand letter before filing a lien in Utah?▾
Utah requires a Preliminary Notice within 20 days of first furnishing to preserve lien rights. A demand letter is not required but is recommended.