§ 572.30

572.30 Action by subcontractor or owner against general contractor or owner-builder. Unless otherwise agreed, a general contractor or owner-builder who engages a subcontractor to supply labor or materials or both for improvements, alterations, or repairsto a specific residential construction property shall pay the subcontractor in full for alllabor and materials supplied within thirty days after the date the general contractor orowner-builder receives full payment from the owner. If a general contractor or owner-builderfails 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 orowner-builder to recover the amount due. Prior to commencing an action to recover theamount due, a subcontractor, or the owner by subrogation, shall give notice of nonpaymentof the cost of labor or materials to the general contractor or owner-builder paid for theimprovement. Notice of nonpayment must be in writing, delivered in a reasonable manner,and in terms that reasonably identify the real estate improved and the nonpaymentcomplained of.

lder paid for theimprovement. Notice of nonpayment must be in writing, delivered in a reasonable manner,and in terms that reasonably identify the real estate improved and the nonpaymentcomplained of. In an action to recover the amount due a subcontractor, or the owner bysubrogation, under this section, the court in addition to actual damages, shall award asuccessful plaintiff exemplary damages against the general contractor or owner-builder inan amount not less than one percent and not exceeding fifteen percent of the amount duethe subcontractor, or the owner by subrogation, for the labor and materials supplied, unlessthe general contractor or owner-builder does one or both of the following, in which case noexemplary 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 thenonpayment for which notice has been given under this section, and in a form approved bythe administrator, to

owner-builder gives a bond, in an amount not less than the amount necessary to satisfy thenonpayment for which notice has been given under this section, and in a form approved bythe administrator, to hold harmless the owner or person having the improvement made fromany claim for payment of anyone furnishing labor or material for the improvement, otherthan the general contractor or owner-builder. [81 Acts, ch 186, §4]87 Acts, ch 79, §9; 2012 Acts, ch 1105, §20, 27, 28; 2012 Acts, ch 1138, §13; 2013 Acts, ch 99, §14 Sat Dec 23 11:07:59 2023 Iowa Code 2024, Section 572.30 (23, 0)