Utah Contractor License Bond Requirements
The Utah Division of Occupational and Professional Licensing (DOPL) requires general and specialty contractor applicants to obtain a contractor license bond for their licensing in certain situations. They include:
- If in the last 2 years, you have been delinquent in payment of a debt or obligation, such as state or federal income taxes, payroll withholding, unemployment, workers' compensation, and liability insurance premiums, debts to subcontractors or suppliers, the Residence Lien Recovery Fund, credit cards, banks, alimony, or child support;
- If you have filed bankruptcy within the last 7 years or have had any judgments entered against you within the last 5 years;
- If the current value of all real and personal property you own doesn't exceed the total liabilities you owe.
In case you fall in any of these categories, the bonding amounts you'll need to provide are the following, depending on the license type you're applying for:
- General Building (B100) & General Engineering Contractors (E100) – $50,000
- Residential & Small Commercial Contractors (R100) – $25,000
- All other license classifications – $15,000
You'll have to submit your bond in the official forms provided by the DOPL together with your license application.
The purpose of your Utah contractor license bond is to be additional financial security for the state and for your customers. It ensures you will adhere to the Utah Code Ann. Title 58, Chapter 55 (Utah Construction Trades Licensing Act) in your work as a licensed contractor. The bond can be used to compensate parties who suffer losses due to any violations on your side.
Bryant Surety Bonds can provide bonds for all types of Utah contractor license classifications. You can get started by completing our online application form to receive your free quote.
Bidding on a construction project for which you need to get bonded too? Make sure to check out our contract bonds guide.
Get a quick estimate of the cost of your bond by using our surety bond calculator below!
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How Much Does a Contractor License Bond Cost in Utah?
The cost of your Utah contractor license bond is a small percentage of the required amount, which is called the premium. If you have to get a $50,000 bond for a Utah general contractor license and your rate is set at 1%, your premium would be as low as $500.
The bond rate that your surety offers depends on the strength of your personal and business finances. Your credit score is the most important factor, with a good credit score considered one above FICO 700.
You can review the following table for a ballpark estimate of your premium:
|Utah Contractor License Bond Costs|
|License type||Bond Amount||Starting Price|
|General Building & General Engineering Contractors||$50,000||$500|
|Residential & Small Commercial Contractors||$25,000||$250|
|All other license classifications||$15,000||$150|
The rest of the factors that may affect your Utah surety bond cost include:
- Personal and business finances
- Fixed and liquid assets
- Business experience and track record
Need more information about the way your bond cost is formulated? You can check out our in-depth surety bond cost guide for more details.
Utah Contractor Licensing Requirements
The license requirements depend on the license type you'd like to obtain in the state. Some of the criteria that apply to all license types include:
- Complete the contractor license application form
- Business entity registration and information
- Completion of the qualifying questionnaire in the application form
- Financial information
- Proof of experience and qualifications
- Proof of passing any required trade or Utah Laws and Rules exams
- General Liability Insurance Certificate with a minimum required coverage of $100,000 for each incident and $300,000 in total
- Workers' compensation certificate (if applicable)
- Payment of the applicable license fees