Becoming a licensed general contractor in Utah requires meeting certain eligibility criteria, passing examinations, and securing proper insurance and bonds. This comprehensive guide covers everything you need to know to obtain your Utah general contractor license.

Introduction

A general contractor license is required in Utah for any construction project valued at $3,000 or more. The Utah Division of Occupational and Professional Licensing (DOPL) issues contractor licenses for the state.

There are three main types of general contractor licenses in Utah:

  • B-100 General Building Contractor – Allows work on commercial and residential buildings
  • R-100 Residential and Small Commercial Contractor – Allows work on residential buildings and small commercial projects up to $500,000
  • E-100 General Engineering Contractor – Allows work on engineering projects like roads, bridges, and utilities

Contractors must renew their licenses every two years and meet continuing education requirements to stay current on regulations and best practices.

Utah offers reciprocity for contractors licensed in some other states if certain conditions are met. The state also has streamlined license requirements for electricians that hold current licenses in states with equivalent regulations.

Requirements for a New Utah General Contractor License

General contractors in Utah must meet eligibility criteria, pass exams, and secure proper insurance and bonds. Key requirements include:

Eligibility

  • Experience – Applicants must document 2 years (4,000 hours) of paid experience in construction. This can include military service, education, or prior contracting work.

  • Business Registration – The contractor’s business must be registered as an LLC, corporation, partnership, etc. with the Utah Division of Corporations.

  • Tax Requirements – An Employer Identification Number (EIN) is required from the IRS. If the contractor has employees, they must also have state tax registration and unemployment insurance.

Examinations

  • Business and Law Exam – A 60 question exam on Utah construction law and business management. Offered in English and Spanish.

  • Trade Exam – A 100 question exam on technical knowledge in the contractor’s specialty, like electrical, plumbing, or general building.

Insurance and Bonds

  • Liability Insurance – Minimum $100,000 per occurrence and $300,000 aggregate coverage.

  • Workers’ Compensation – Required for contractors with employees. A waiver is available for sole proprietors without employees.

  • License Bond – Minimum $15,000 surety bond from an approved company. Not required for certain license types.

Applying for a New Utah General Contractor License

Follow these steps to obtain your new Utah general contractor license:

  1. Determine license type – Choose General Building, Residential/Small Commercial, or General Engineering depending on your scope of work.

  2. Complete pre-licensure education – A 30 hour course is required for general contractors. Offered by approved providers.

  3. Register your business – File formation documents for your business entity with the Utah Division of Corporations.

  4. Get an EIN – Obtain an Employer ID Number from the IRS and register for state taxes if needed.

  5. Secure insurance and bonds – Obtain the required liability insurance, workers’ compensation coverage, and license bond.

  6. Submit license application – File the contractor license application with supporting documents to DOPL.

  7. Pass examinations – Schedule and pass the required business/law and trade examinations.

  8. Get local permits – Register with municipalities or counties where you plan to perform work.

  9. Maintain requirements – Keep insurance, bonds, and business registrations current.

Utah charges fees for new contractor license applications, exams, insurance, and other administrative costs. Total fees often range from $300 to $500 depending on the type of license pursued.

Renewing a Utah General Contractor License

Utah general contractor licenses expire on November 30th of odd-numbered years. To renew your license:

  • Submit a renewal application to DOPL by the expiration date
  • Pay a $157 renewal fee
  • Maintain continuous general liability insurance
  • Complete 8 hours of continuing education credits
  • Keep your business registration active with the state

You can renew your Utah contractor license up to 90 days prior to expiration. After expiration, late fees apply and requirements must still be met. Licenses lapsed for more than 6 months require re-examination.

Reciprocity with Other States

Utah offers reciprocity for general contractor licenses issued in other states if:

  • The applicant has an active license from a state with equivalent requirements
  • The license has been active for at least 1 year
  • Any disciplinary action against the license is disclosed
  • The applicant passes Utah’s criminal background check

Applicants for reciprocity must complete Utah’s license application, pay a $330 fee, and meet the state’s insurance and bonding requirements.

Utah has special reciprocal arrangements for electrician’s licenses with states that have substantially equivalent licensing standards. Electricians licensed for at least 1 year in those states can obtain a Utah license after passing a law and rule exam.

Utah License Bond Requirements

Utah requires general contractor license bonds to provide financial protection for customers in the event of damage, breach of contract, or other issues. Key requirements include:

  • Minimum $15,000 bond amount
  • Bond must be from a surety company authorized in Utah
  • Principal name must match the contractor’s licensed business
  • DOPL must be listed as the bond obligee

Bonds must remain active as long as the contractor’s license is current. lapses in bond coverage can result in disciplinary action against the license.

Contractors may increase bond amounts for larger projects or use supplemental project-specific bonds. Most bonds cost $100 to $300 per year from the surety company.

Utah Insurance Requirements

General liability insurance and workers’ compensation coverage are required to obtain and renew a Utah general contractor license.

General Liability Insurance

  • Minimum $100,000 per occurrence
  • Minimum $300,000 aggregate policy limit
  • DOPL must be listed as the certificate holder
  • Continuous coverage required

Workers’ Compensation

  • Required for contractors with employees
  • Not required for sole proprietors with no employees
  • Minimum indemnity limits apply per Utah law

Insurance policies must be written by insurers authorized in Utah. Coverage gaps or lapses can lead to disciplinary action against the contractor’s license.

Conclusion

Obtaining a general contractor license in Utah requires meeting eligibility criteria, passing trade examinations, securing proper insurance, and maintaining business registrations. Key steps include documenting work experience, completing pre-licensure education, registering your business entity, securing liability policies and license bonds, and successfully applying to the DOPL.

Utah offers reciprocity for actively licensed general contractors from other states with equivalent requirements. The state also streamlines electrician licensing for trained professionals from states with similar regulations.

Following Utah’s licensing process allows general contractors to legally perform construction projects valued at $3,000 or higher across the state. Staying current on renewals, continuing education, and insurance requirements keeps your business in good standing.