On August 3, 2026, the U.S. Census Bureau reported that construction spending in June 2026 ran at a seasonally adjusted annual rate of about $2.17 trillion (Census Bureau release, reported by Floor Daily). With that much money moving through the industry, disputes are inevitable. Many experienced real estate investors, contractors, and owners have handled disputes before. For others, a contract dispute is unfamiliar territory. Even industry veterans can encounter a dispute unlike anything they have seen.
Online research can provide general guidance, but an experienced Utah construction attorney can evaluate the specific contract, facts, and deadlines that control your situation. Snow Jensen & Reece, P.C. was founded in 1986 and has served real estate and construction clients in Southern and Central Utah for decades. To discuss your situation, contact us at (435) 628-3688.
Summary: How to Approach a Construction Contract Dispute
Resolving a construction contract dispute usually starts with the same steps: review the contract, identify the deadlines that apply, gather documentation, and consider alternative dispute resolution (ADR) before litigation. The right strategy depends on the type of dispute, which may involve unpaid compensation, allegedly defective work, project delays, or other contract issues.
• Reviewing the contract helps identify potential breaches, notice and claim requirements, and any mandatory mediation or arbitration procedures.
• Utah law imposes its own deadlines, including construction lien deadlines and statutes of limitation and repose, that can cut off claims regardless of the merits.
• Documentation such as daily logs, change orders, progress reports, correspondence, photographs, and financial records helps establish the facts.
Some of these deadlines are short. Waiting to act can mean losing a claim or remedy entirely.
The Right Course of Action Depends on the Type of Dispute
There is no universal set of steps for every construction contract dispute. The best strategy depends on the nature of the dispute, which is why it often makes sense to discuss the specific circumstances with an experienced construction lawyer. Snow Jensen & Reece, P.C. has assisted owners, developers, contractors, and other parties in many of these disputes throughout Utah.
Payment disputes
A dispute over unpaid compensation may involve Utah’s construction lien law, found in Utah Code Title 38, Chapter 1a. Utah calls these “construction liens” rather than “mechanics’ liens,” and preserving lien rights depends on strict compliance with statutory deadlines tied to the State Construction Registry:
• Preliminary notice. A person who wants to claim a construction lien generally must file a preliminary notice with the State Construction Registry no later than 20 days after first providing construction work on the property (Utah Code § 38-1a-501). A late filing may preserve lien rights only for work performed after the late notice, subject to additional limits.
• Notice of construction lien. The lien itself must be recorded with the county recorder within 180 days after final completion of the original contract, or, if a notice of completion is filed, within 90 days after that filing but no later than 180 days after final completion (Utah Code § 38-1a-502; see also § 38-1a-507).
• Enforcement. A lien claimant must also file a timely action to enforce the lien, or the lien becomes unenforceable (Utah Code § 38-1a-701).
Different rules apply to design and planning work (“preconstruction liens”), to owner-occupied residences, and to public projects. Liens generally cannot be recorded against public property, so payment claims on public projects usually proceed against the statutorily required payment bond instead.
Defective work disputes
A dispute over allegedly substandard work often turns on clear documentation of the defects and on the contract’s notice and cure provisions. Many construction contracts require the owner to give written notice of defective work and a reasonable opportunity to correct it before terminating the contractor or pursuing damages. Failing to follow those contractual steps can weaken an otherwise valid claim. Depending on the project and the parties, other statutory requirements may also apply, so the governing contract and statutes should be reviewed before any claim is asserted.
Delay disputes
A dispute over a delayed project usually revolves around the schedule, the contract’s notice requirements for delay claims and change orders, and clauses addressing excusable delay, liquidated damages, or “no damages for delay.” Missing a contractual notice deadline for a delay or change-order claim can forfeit the claim, so these provisions deserve prompt attention.
Reassess the Contract
One of the first steps in any contract dispute is to re-read the contract, ideally before either side starts accusing the other of a breach. What seems like a violation may not be prohibited by the contract, and what seems permitted may actually be restricted. Most parties do not remember every provision of a lengthy construction agreement, and the “fine print” often controls the outcome.
A lawyer can help answer key questions before the dispute escalates:
• What counts as a breach or default under the contract’s specific wording?
• What written notice must be given, to whom, and by when?
• Does the contract require negotiation, mediation, or binding arbitration before litigation?
• Does the contract shorten the time to bring a claim, limit damages, or provide for attorney fees?
Utah time limits
Apart from contractual deadlines, Utah law sets outer limits on construction claims. Under Utah Code § 78B-2-225, claims against a design or construction provider based in contract or warranty generally must be brought within six years after completion or abandonment of the improvement, unless the contract or warranty sets a different period. Other claims, such as negligence claims, generally must be brought within two years after the claimant discovers or should have discovered the cause of action, and are subject to a nine-year statute of repose measured from completion or abandonment. Exceptions apply, and these periods interact with the lien deadlines described above, so determining the controlling deadline early is essential.
Gather Documentation
The party with better records usually has the stronger position. Start gathering and preserving documents as soon as a dispute appears likely, and do not delete emails, texts, or project files that may be relevant. The right documents depend on the type of dispute:
• Delay claims: baseline and updated schedules, daily logs, progress reports, meeting minutes, weather records, and delay notices.
• Payment claims: pay applications, invoices, lien waivers, change orders, financial statements, and State Construction Registry filings.
• Defect claims: photographs, inspection reports, expert evaluations, warranty correspondence, and records of any notice given and repairs attempted.
For every dispute, the signed contract, all amendments and change orders, and the correspondence between the parties are essential.
Consider Alternative Dispute Resolution
Most construction professionals prefer to avoid lawsuits when they can. Litigation is expensive, time-consuming, and unpredictable, and court filings are generally public. Every month spent in litigation is time taken away from building projects and serving clients.
Alternative dispute resolution (ADR) offers a way to resolve disputes outside the courtroom:
• Mediation is a confidential, non-binding negotiation guided by a neutral mediator. Utah’s Uniform Mediation Act (Utah Code Title 78B, Chapter 10) generally protects mediation communications from disclosure, subject to statutory exceptions.
• Arbitration is a private proceeding in which an arbitrator issues a decision that is usually binding and difficult to appeal. Arbitration agreements are generally enforced under the Utah Uniform Arbitration Act (Utah Code Title 78B, Chapter 11) and, for many contracts, the Federal Arbitration Act.
Arbitration is private, but it is not automatically confidential. Confidentiality usually depends on the contract, the arbitration rules, or a separate agreement. Starting ADR also does not necessarily pause statutory deadlines, including lien enforcement deadlines, so those must still be tracked. An experienced construction lawyer can guide these negotiations and help protect your interests throughout the process.
If ADR fails or is not required, litigation may become necessary. Knowing your deadlines in advance helps ensure that option remains available.
Talk With Snow Jensen & Reece, P.C. About Your Construction Dispute
Every construction contract dispute is different, and each may require its own strategy. An experienced Utah construction attorney can help interpret complex contracts, track critical deadlines, lead negotiations and mediation, and represent you in arbitration or litigation when necessary. Snow Jensen & Reece, P.C. holds an AV Preeminent® rating from Martindale-Hubbell® and serves clients from offices in St. George, Cedar City, and Kanab. To discuss your situation, contact us at (435) 628-3688.
This article provides general information only and is not legal advice. Reading it does not create an attorney-client relationship. Laws change and outcomes depend on specific facts, so consult an attorney about your situation. AV Preeminent and Martindale-Hubbell are trademarks of their respective owners; ratings reflect peer review and do not guarantee any outcome.
Frequently Asked Questions About Construction Contract Disputes
What is a construction contract dispute?
A construction contract dispute occurs when parties disagree about their rights, obligations, performance, payment, timing, or other terms under a construction agreement. Common disputes involve unpaid compensation, defective work, project delays, change orders, and alleged breaches of contract.
What should I do first when a construction contract dispute arises?
Review the contract to understand the obligations, notice requirements, deadlines, and dispute-resolution procedures that apply. Then preserve and gather documentation, and identify any statutory deadlines, such as construction lien deadlines, before they run.
Why is reviewing the contract so important?
The contract often determines whether an action is a breach and sets notice deadlines and procedures that affect the available remedies. Many construction contracts also require mediation or arbitration before, or instead of, litigation.
How long do I have to file a construction lien in Utah?
In general, a claimant must first file a preliminary notice with the State Construction Registry within 20 days after beginning work. The notice of construction lien must then be recorded within 180 days after final completion of the original contract, or within 90 days after a notice of completion is filed, but no later than 180 days after final completion. A timely enforcement action must follow. Exceptions apply, so confirm the deadlines for your project with an attorney.
What documentation helps in a construction contract dispute?
Useful records include the contract and change orders, daily logs, schedules, progress reports, pay applications, lien waivers, financial records, correspondence, photographs, and records of construction defects and repairs. For delay disputes, schedules and records showing when work actually occurred are especially important.
What is alternative dispute resolution (ADR)?
ADR includes processes such as mediation and arbitration that allow parties to resolve disputes without a courtroom trial. These processes can offer more privacy and flexibility than litigation, although the right approach depends on the contract and circumstances.
When might a construction contract dispute require litigation?
Litigation may become necessary when contractual procedures and other resolution efforts fail, or when a deadline requires filing to preserve a claim, such as an action to enforce a construction lien. The timing and availability of a lawsuit depend on the contract, the type of claim, and Utah law.