To work as a contractor in the state of Utah, you’ll need to meet all of the proper requirements as set forth by the Utah Department of Commerce Division of Occupational and Professional Licensing (DOPL). Those who contract without a license are guilty of a Class A misdemeanor, and will be subject to fines and penalties.
In addition to passing the PSI examination and submitting a completed contractor application packet, sent with the required fee, general contractors must also register their business with the Utah Department of Commerce’s Division of Corporations and Commercial Code. They are also required to provide proof of applicable workers’ compensation, liability insurance, and surety bonds.
Utah Contractor License Requirements
Utah’s State Legislature defines a “general building contractor” under Utah Code (84-55-102) as a person who is “qualified by education, training, experience, and knowledge to perform or superintend the construction of structures for the support, shelter, and enclosure of persons, animals, chattels, or movable property of any kind…”
The definition goes on to specify that general contractors also handle “any of the components of that construction except plumbing, electrical work, mechanical work, work related to the operating integrity of an elevator, and manufactured housing installation, for which the general building contractor shall employ the services of a contractor licensed in the particular specialty…”
The exception here is when a general building contractor is “engaged in the construction of single-family and multifamily residences up to four units [at which point they] may perform the mechanical work and hire a licensed plumber or electrician as an employee.”
The State of Utah regulates 23 contractor types, one of which, the construction trades instructor, lists five subtypes. Plumbers and electricians are also regulated by the state. Check out Utah Code (58-55-301) for a complete list of license classifications.
Who Needs a Contractors License?
Utah Code (58-55-301) specifically states that any “person engaged in the construction trades licensed under this chapter, as a contractor regulated under this chapter, as an alarm business or company, or as an alarm company agent, shall become licensed under this chapter before engaging in that trade or contracting activity in this state unless specifically exempted from licensure under Section 58-1-307 or 58-55-305.”
This means that pretty much anybody performing construction, repair, alteration, or demolition of any type of building will need a license. Unfortunately, Utah does not have reciprocity when it comes to licensing. However, Utah does allow for licensure by endorsement.
According to the DOPL website, “although this list is not exclusive, Utah has determined that certain license classifications with Arizona, California, Louisiana, Nevada, and South Carolina are substantially equivalent to Utah’s classification requirements.”
All applicants for endorsement are still required to have their qualifiers pass the Utah Business Laws & Rules Exam, as would a first-time applicant.
What Do You Need To Become a Contractor in Utah?
To become a general contractor in Utah, you’ll need to apply for a license with DOPL. However, before applying for a license, you need to make sure the following requirements are met:
- 25-hour Pre-License Course. All applicants must have already completed a 25-hour pre-license course from either Utah Home Builders (UHB) or Associated General Contractors of Utah (AGC). Review this list of approved pre-licensure education providers for contractors.
- General Liability Insurance Certificate. General contractors in the state of Utah are required to have obtained general liability insurance with a minimum required coverage of $100,000 for each incident and $300,000 in total coverage — DOPL must be listed as the certificate holder.
- Proof of Surety Bond. Aspiring contractors should contact a bonding company to secure a bond appropriate for the anticipated needs of their work. Not all general contractors in Utah will need a surety bond. This will depend on your classification.
- Business Entity Registration. If you are a corporation, LLC, LLP, or partnership, you’ll need to have registered your business with the Utah Division of Corporations and Commercial Code.
- Federal EIN. Everybody that does business in Utah must have obtained an Employer Identification Number (EIN) from the Internal Revenue Service.
- Experience. In the past 10 years, a minimum of two years of full-time related experience, one year of which shall be in a supervisory or managerial position for as a general contractor.
- If you have employees, there are additional requirements:
- Workers’ compensation. Virtually all Utah employers are required to maintain workers’ compensation insurance coverage. The minimum weekly payout for workers’ compensation in Utah is $45. Visit the Utah Insurance Department’s website for more information.
- State withholding tax. You must register with the Utah State Tax Commission. Learn more about Utah state tax withholding.
- Unemployment registration. Unemployment insurance from the Utah Department of Workforce Services is required from all employers working within the state.
After these pre-requirements are met, prospective contractors will need to fill out and submit a contractor application, and must have completed the PSI UT B-100 General Building Contractor Examination as well as the UTAH Construction Business and Law Examination. More information on these exams can be found online at PSIexams.com.
Licensing and Registration Fees
The following fees are required to complete the Utah General Contractor application:
- $225.00 – application fee for a new applicant (includes one classification + one qualifier)
- $175.00 – application fee for each additional classification
- $50.00 – application fee for each new, additional, or change in qualifier.
- If the entity is unincorporated (e.g. an LLC) and you have an owner owning less than 8%, complete Appendix G on the DOPL website and pay $20 registration fee for each owner owning less than 8%
- $70.00 — Business registration fee (non-refundable) through the State of Utah Department of Commerce (unless DBA registration, which costs $22.00).
All payments should be made by check, payable to “DOPL”, except the business registration fee, which should be made out to “State of Utah”. All fees are non-refundable.
Submit all application fees in person/via express delivery to:
Division of Occupational and Professional Licensing
Heber M Wells Building, 1st Floor Lobby
160 E 300 S
Salt Lake City, UT 84111
Or via the U.S. Postal Service:
Division of Occupational and Professional Licensing
P.O. Box 146741
Salt Lake City, UT 84114-6741
Utah Contractors Exam
The amount of education required to become a general contractor in Utah is substantial. Before applicants can apply for a license, they must have completed:
- A 25-hour pre-license course from either Utah Home Builders (UHB) or Associated General Contractors of Utah (AGC)
- PSI examination UT B-100 General Building Contractor
- PSI examination UTAH Construction Business and law Examination.
The 25-hour training is offered by AGC and UHB. According the AGC website:
- The course fee is $310.00
- An optional textbook fee of $70.00 for NSCLA Contractors Guide to Business, Law and Project Management, Utah 3rd Edition.
- Cancellation fee is $25.00
- “No-Show” fee is $50.00
Below are the approved 25-hour pre-licensure education providers for prospective contractors:
Associated General Contractors of Utah (AGC)
2207 South 1070 West Salt
Lake City, UT. 84119
Associated General Contractors (AGC) of South Utah Office
230 North 1680 East
St. George, Utah 84790
Salt Lake Office of the Home Builders Association
Southern Utah Office of the Home Builders Association
Cache Valley Office of the Home Builders Association
Once the 25-hour pre-license course is complete, you can begin looking into the PSI examinations. The B-100 General Building Contractor Exam:
- Allows 3 hours for completion
- Has a minimum passing score of 70 percent
- Consists of 80 questions
- Sitework — 6 questions
- Concrete — 10 questions
- Masonry — 6 questions
- Metals — 7 questions
- Carpentry — 8 questions
- Thermal and Moisture Protection — 4 questions
- Doors and Window — 4 questions
- Drywall and Finishes — 3 questions
- Safety — 5 questions
- Plan Reading, and Estimating — 10 questions
- Blue Stakes — 3 questions
- Roofing — 4 questions
- General Building Codes — 7 questions
- Sewer and Septic — 3 questions
- Costs $72.00
Applicants will also be required to pass the UTAH Construction Business and Law Examination. This is also offered by PSI Exams and costs $72.00. More information on the UTAH Construction Business and Law Examination can be found on PSI’s official website.
Contractors Exam Fees
Between the three exams and training courses that are required for general contractors, there are multiple fees that will need to be paid by the qualifier.
- $310.00 — 25-hour pre-license course fee
- $70.00 — optional textbook fee
- $72.00 — B-100 General Building Contractor Exam
- $72.00 — UTAH Construction Business and Law Examination
Utah Contractors License Application
The State of Utah Department of Commerce Division of Occupational and Professional Licensing uses the same application for all classifications of contractor that they regulate. The application has multiple sections requesting various information:
- Applicant Information. Here you’ll provide information such as your business legal name, DBA (if applicable), mailing address, and phone number.
- Affidavit and Release. Here you’ll sign and date certifying (among other things) that you’re qualified to be a contractor and that you do not pose a threat to yourself, your clients, or to the public health.
- Business Organization. Select and provide information on whether your entity is a sole proprietorship, or another entity type, such as business trust or corporation.
- Qualifying Questionnaire. This section contains 12 “yes or no” questions determined to answer, among other things, whether you have a criminal history. If you do, you’ll be required to provide a written explanation, and may have to submit a criminal history report.
- Financial Responsibility. Two yes or no questions determined to ascertain whether any judgments, liens, taxes, or child support delinquencies have ever been levied against the applicant/qualifier or associates, or if they have gone bankrupt. If this is the case, you’ll have to submit copies of any judgments or tax liens and evidence that it has been paid or is in an approved payment plan as well as Credit Report Authorization.
- Qualifier Information and Classification. The qualifier will provide their full legal name, mailing address, email, and phone number, as well as their position (either owner of at least 20 percent of the company, or W-2 Employee in Management Position), their SSN, U.S. Driver License No., and D.O.B.
- Affidavit of Experience (Only Required for B-100, R-100, and E-100). The B-100 General Building Contractor license requires new qualifiers to complete the Affidavit of Experience. Here you’ll provide:
- Applicant information: to be completed by the applicant, including full legal name and mailing address.
- Employment Information: to be completed by the supervisor or HR Representative, including the name of the contractor and their license number, name of supervisor, company address, telephone, dates of employment/supervision, and a description of the applicant’s work.
- Ownership Listing. Here you’ll provide information for all owners except for sole proprietors, including full legal name, SSN, D.O.B., mailing address, and email address.
- Employees. Here you’ll indicate whether or not you have employees.
- General Liability Insurance. All licensees must have general liability insurance.
- Certification. Here you’ll certify, among other things, I certify that the licensee has general liability insurance, as required by Utah law and rules, that covers all scope of work of the licensee, and shall be in effect for the entire duration of active licensure.
- Fees & Instructions. The instructions to pay fees are listed here. Make check payable to “DOPL”.
Remember to submit your application with all documents at one time, with fees included. Failure to do so may cause your application request to be delayed or even denied.
Utah Contractor Registration and Permitting Requirements
Beyond the Utah business registration requirements as well as the DOPL licensing, there may be additional permitting requirements established by local municipalities or governments below the state level. See Utah’s “one-stop online business registration portal” below for more information.
Utah State Business Licenses and Registration
To do business in Utah, contractors will have to register their organization with the state. Fortunately, Utah offers a one-stop online business registration portal. This process allows prospective contractors to register their business with:
- the Utah State Tax Commission
- the Utah Labor Commission
- the Utah Department of Commerce
- the Utah Department of Workforce Service
- and the Utah Department of Environmental Quality
After completing the online registration process, you’ll be sent the licenses and account numbers for your business. Additionally, you’ll receive all the necessary information to obtain additional business licensing required by local municipalities, if applicable.
Utah Business Registration
Anybody wishing to do business in the State of Utah must register their business with the Utah Division of Corporations and Commercial Code.
Utah Tax Identification Numbers and Registration
Utah Workers’ Compensation Insurance Requirements and Forms
Utah employers are required to purchase workers’ compensation insurance coverage. Visit the Utah Insurance Department’s website for more information.
Utah Contractor License Lookup and Verification
Using the Utah Licensee Lookup & Verification System, you can search for licenses and license-holders by name and profession or by license number.