Kentucky Revised Statutes

Ky. Rev. Stat. § 371.400 (2026)

Definitions for KRS 371.400 to 371.425

✓ current as of May 2026
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As used in KRS 371.400 to 371.425:

(1) "Construction" means the process of building, altering, repairing, improving, or demolishing any structures or buildings, or other improvements of any kind to any real property, but does not include processing equipment used for the process of manufacturing or the routine maintenance of existing structures, buildings, or real property;

(2) "Contract" means a contract or agreement concerning construction made and entered into by and between a contracting entity and a contractor, a contractor and a subcontractor, or a subcontractor and another subcontractor;

(3) "Contracting entity" means an owner of real property; a trustee or agent of an owner of real property; or a public official, public authority, or other public entity authorized to contract under the Kentucky Revised Statutes;

(4) "Contractor" means a person performing construction and having a contract with a contracting entity;

(5) "Disputed amount" means to question in good faith the validity, either in whole or part, of a request for payment asserted by any party;

(6) "Owner" means a person who holds an ownership interest in real property;

(7) "Person" means an individual, corporation, estate, trust, partnership, limited liability company, association, joint venture, or any other legal entity;

(8) "Processing equipment" means equipment which uses physical or chemical methods to increase the value of a raw material or product and is installed by the person contractually responsible to the contracting entity for the design, purchase, installation, and performance of that equipment;

(9) "Retainage" means money earned by a contractor or subcontractor but withheld to ensure proper performance by the contractor or subcontractor and that shall be paid upon completion of contractual obligations;

(10) "Subcontractor" means any person performing construction covered by a contract between a contracting entity and a contractor who does not have a contract with the contracting entity; and

(11) "Undisputed amount" means a good faith, valid, accurate, timely request for payment which has been submitted to any entity owing money, that the recipient of the request for payment has reviewed and agrees that the money is due and owing. Effective: June 26, 2007 History: Created 2007 Ky. Acts ch. 136, sec. 1, effective June 26, 2007.

Notes of Decisions
Cited in 4 cases (3 in the last 5 years), 2020–2025 · leading case: Triton Servs., Inc. v. Century Constr., Inc. (E.D. Ky. 2022).
Triton Servs., Inc. v. Century Constr., Inc. (E.D. Ky. 2022). · cites it 2× “1 KRS § 371.400(3). Century counters that it is not required to pay Triton until the Owner has made final payment, which it claims it has not received.”
Tsi Constr., Inc. v. Louisville & Jefferson Cnty. Metro. Sewer Dist. (Ky. Ct. App. 2020). “Finally, the Court determined: Admittedly, there are several issues that could conceivably be argued as being issues of material fact that would preclude summary judgment—whether the 3 The Kentucky Fairness in Construction Act, KRS 371.400 et seq. -10- correspondence sent by T+C…”
Katherine M. Waldridge v. Commonwealth of Kentucky (Ky. Ct. App. 2022). “Katherine also argues the contract with the Tans was governed by the Kentucky Fairness in Construction Act (“KFCA”), KRS 371.400 et seq. The parties dispute whether this argument was preserved, but the argument is meritless.”
Elder Constr. & Assocs., Inc. v. Georgetown-Scott Cnty. Airport Bd. (Ky. Ct. App. 2025). ““In any action to enforce KRS 371.400 to 371.425, including arbitration, the court or arbitrator shall award costs and reasonable attorney’s fees to the prevailing party if the losing party is deemed to have acted in bad faith.”
Ky. Rev. Stat. § 371.400(3): 1 case
Triton Servs., Inc. v. Century Constr., Inc. (E.D. Ky. 2022). “1 KRS § 371.400(3). Century counters that it is not required to pay Triton until the Owner has made final payment, which it claims it has not received.”
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