This text of Iowa § 572.30 (Action by subcontractor or owner against general contractor or owner-builder) is published on Counsel Stack Legal Research, covering Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.
Unless otherwise agreed, a general contractor or owner-builder who engages a
subcontractortosupplylaborormaterialsorbothforimprovements, alterations, orrepairsto
a specific residential construction property shall pay the subcontractor in full for all labor and
materials supplied within thirty days after the date the general contractor or owner-builder
receives full payment from the owner. If a general contractor or owner-builder fails without
due cause to pay a subcontractor as required by this section, the subcontractor, or the owner
by subrogation, may commence an action against the general contractor or owner-builder
to recover the amount due. Prior to commencing an action to recover the amount due, a
subcontractor, or the owner by subrogation, shall give notice of nonpayment of the cos
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Unless otherwise agreed, a general contractor or owner-builder who engages a
subcontractortosupplylaborormaterialsorbothforimprovements, alterations, orrepairsto
a specific residential construction property shall pay the subcontractor in full for all labor and
materials supplied within thirty days after the date the general contractor or owner-builder
receives full payment from the owner. If a general contractor or owner-builder fails without
due cause to pay a subcontractor as required by this section, the subcontractor, or the owner
by subrogation, may commence an action against the general contractor or owner-builder
to recover the amount due. Prior to commencing an action to recover the amount due, a
subcontractor, or the owner by subrogation, shall give notice of nonpayment of the cost
of labor or materials to the general contractor or owner-builder paid for the improvement.
Notice of nonpayment must be in writing, delivered in a reasonable manner, and in terms
that reasonably identify the real estate improved and the nonpayment complained of. In an
action to recover the amount due a subcontractor, or the owner by subrogation, under this
section, the court in addition to actual damages, shall award a successful plaintiff exemplary
damages against the general contractor or owner-builder in an amount not less than one
percent and not exceeding fifteen percent of the amount due the subcontractor, or the
owner by subrogation, for the labor and materials supplied, unless the general contractor or
owner-builder does one or both of the following, in which case no exemplary damages shall
be awarded:
1. Establishes that all proceeds received from the person making the payment have been
applied to the cost of labor or material furnished for the improvement.
2. Within fifteen days after receiving notice of nonpayment the general contractor or
owner-builder gives a bond, in an amount not less than the amount necessary to satisfy the
nonpayment for which notice has been given under this section, and in a form approved by
the administrator, to hold harmless the owner or person having the improvement made from
any claim for payment of anyone furnishing labor or material for the improvement, other
than the general contractor or owner-builder.
[81 Acts, ch 186, §4]