Show BUILDERS MUST T PAY PHY AS 60 Lumber Dealers in Iron Clad Agreement With Con Contractors Contractors Contractors I tractors I EFFECTS FAR REACHING COURT DECISION CAUSES LUM LUMBERMEN LUMBERMEN LUMBERMEN BERMEN UNEASINESS So quietly that It was known to only a favored few a change has been ef eC effected effected in the local loc il field of or building operations that is likely to prove proe of the most importance Since May 1 an ironclad agreement has existed between the wholesale and retail lumber dealers a majority of the local contractors and architects and the local brick companies by the terms of which the lumbermen and furnishing material for Cor any structure here are to be paid up in full every two weeks for the material delivered up to that time for use in the building in question The for a year have practically to furnish brick to any an contractor or builder who ho refused to agree gree to settle setU at the end of every eYer two weeks w eks for the brick dc livered to him The lumber dealers have never had an agreement with ref reference reference to being paid except as individual ual firms have haYe made agreements with the contractors with whom they dealt as to when they the should be remunerated for the thc lumber furnished The lumber lumbermen lumbermen lumbermen men have haye to a certain degree been pro protected protected protected by the companies or individuals bonding the contractors on the different jobs and the usual custom has bas been len for contractors or builders to pay pa for their brick and labor on a new house first and when the latter was com corn completed completed pay p y the lumber bill Paid for Lumber Last The contractor through his hiB agree agreement agreement agreement ment with the builder of the house or whatever structure was being erected secured cash payments pa on the work ork from time to time according to the clr cir circumstances and agreement governing each individual contract The amounts so fiO paid by the builder and the working capital capit l of or the contractor las has been here heretofore heretofore sufficient to carry the building through to completion with the lum mm lumber her ber bill the final thing to be settled after the last payment pa ment on the work was made by the owner Lumbermen have hac felt feit no alarm or concern over the manner in which their bills biUs have haye been handled by the con contractors contractors contractors tractors for if the latter failed to real realize realize realize ize a profit on the building the lumber dealers pad had recourse at once to tile the lien laws of the state Until about the middle of last Jast Feb February February February it was the generally gener lly accepted belief among contractors lumbermen architects and others directly Interest Interested ed cd in building operations that houses I or other as home homesteads homesteads homesteads were not exempt from liens pro providing providing viding for the payment of building ma material materIal bills when wIlen such material had not been paid for by the contractor If the contractor dUnt pay the lumber lumberman man or the brickman the latter got out outa a lien against the property and secured himself against loss Last February an n Ogden firm of lum lumbermen lumbermen lumbermen bermen carried a lien case in which they had been be n defeated ed to the supreme court of the state and to tIle the con eon consternation consternation and surprise of every build building buildIng building ing material dealer d aler in the state the court declared that in this state a builder may designate as his home homestead homestead homestead stead whatever structure of o a home stead nature he may be building and anu that such homestead is not a subject to toa toa toa a mechanics lien Hen up to a certain value viz 1000 for the he husband for the tIie wife and for each child of the t e family Much Is Exempt pt In effect the ruling means this A Aman Aman Aman man with a wife and a family of ten children can build a residence by contract and if IC the contractor tails falls to pay his building material bills his cred ered creditors credItors can get out liens against the prop property property erty ert to secure themselves only to the amount of 1000 as the law exempts 1000 for the husband for Cor the wife and for each of the children in the value of the house leaving but 1000 upon which the liens Hens would be good If the husband erects two cottages each costing 2500 the same conditions prevail and he can declare them both homesteads The amount to which the law exempts him may be spread over as many buildings as he likes The supreme court declared further furthermore furthermore furthermore more that an owner could declare a anew anew anew new house or as many new houses as was legally possible homesteads after the liens had been filed fil d against them and that even after the sheriff had sold the house or houses under such liens Hens the owner could declare them home homesteads homesteads homesteads and establish the extent to which they were exempt from the liens Local had little to fear from the new ruling as for tor a year past they have hae been selling brick only to owners or contractors who pay for them every I two weeks according to the statement of ot a local lumberman yesterday Lum Lumbermen Lumbermen Lumbermen bermen claim the ruling has left them unprotected to such an extent that they have been forced to take some ome measure to Insure payment for their lumber bills from owners or contractors who meet I with misfortune in erecting their build buildings buildings I ings and refuse or say they cannot pay pa Local lumbermen after atter one or two I losses in district court suits on liens with which they the had formerly been I successful awoke to the situation with witha a start Under the agreement that was reached the first of oC the last month be between between between tween the lumbermen the contractors the architects and the of the city cit the lumbermen must with the be paid in Sn full every two weeks for Cor the lumber they have delivered delivered ered to the contractors architects or builders Money Must Be Ready It Is la one of oC the most significant agree agreements agreements ments merits ever eer reached in local building trades circles for it means that a citizen who intends to 10 build a house must have his hla money for tor the same in hand or know where he can get set it before actual work on the building starts rather than as of old have a few hundred dollars for tor a starter and knowing win that probably a ahalt halt half or of the cost of oC his Ills building would not have hae to be met m t until un ll the same was completed arrange for the remainder of or his money later The effect of the combination and the working of or the agreement is being felt all allover allover over town The have hao not the capital to carry cam the work along alon and pay the lumbermen an l with whom they the deal every two weeks arc are bIng crowded crow ed out ut The majority of con about town say Ray the new n w rule tho the lumbermen have made is Justifiable The lumbermen declare that it was at the Ule re request request request quest of the companies who make a busi b l lI I ness of bonding contractors and at tho request of the contractors themselves arid a d architects that the agreement was wac made Early Earl last month an unsuccessful at attempt attempt tempt was made to organize a contractors contractors tors association in Salt Lake The build builders builders builders ers could not be rotten gotten together however and the move moe failed not however until the contractors the architects and companies bonding the two latter had 11 ad reached the agreement given en above rela relative tire the to payment of lumber bills Merrill Explains We were forced into making the agree agreement agreement ment meat by b our inability legally le ally to make building material liens hold in law against a structures which had been designated as homesteads by b their owners said George GeorgeE E Merrill of the Lum Lumber Lumber Lumber ber company com pan yesterday in discussing the new agreement It lt was made with the consent and support of the majority of the reputable contractors architects and I of oC Salt Lake and for the protection of builders as well wen as ourselves Men who have haye to pay pa their lumber bills twice by b means of liens after they the have 1110 settled with contractors who have failed I to 10 settle with us kick just as much as we wedo wedo do an when we fail tail to receive payment pa ment for I lumber that SOPS goes Into a 0 house The n new w ruling on the homestead law ll has made it very difficult and in the majority of oC cases well nigh impossible for us to se secure secure If cure payment on defaulted lumber bills billsby billsbY billsby by means of or the liens We Ve can see no nor reason r a on why a man who is building a ahouse ahouse house should not pay pa as he ho goes up to toa toa toa a certain percentage of the entire valuation valuation tion Jion of or his work of course as liS it is Le right and proper that he hold back something on the contractor The agreement we believe will have the effect of the majority of the work re In the hands of ot reputable 11 ho have sufficient capital to whatever Wh cost coat COl COlof I I of a building the owner holds back until the job is completed From what could be gathered yesterday from the tho small contractors the new nw agreement n works worl a hardship on them end nd while all the local lumber companies ate are in on the n new w agreement competition i Is apt to be shar on small jobs about town from tom now on In brief the agreement means lust this That people p ople who are going to build hom homes homps s sor or any my sort of ot a structure that can be I homestead must mut have liae designated a a about SO 0 or 90 per ier cent of the money on e It I I will take to put it up in hand before the th I work starts that contractors will have to use more capital in carrying ca carri g their con contracts contracts contracts tracts that there will he liens flied filed on hou houses houes es here hereabouts hereabouts hereabouts for building material from now on and that the thO th smaller contractors will have hae to quit th the business or enlarge their n n |