Contractor bond cost
The Utah Division of Occupational and Professional Licensing requires some contractors to post surety bonds to legally work within the state. Applicants should verify with the Construction Services Commission if they are required to provide a surety bond and, if so, the required amount of coverage. Depending on the license type, these bond amounts range from $15,000 to $50,000.
Utah contractor license bonds are subject to underwriting, so the price you’ll pay for your bond depends on your required bond amount and a review of your personal credit report.
Why this bond
All applicants for licensure as a contractor in Utah must demonstrate to the state their financial fitness before a license will be issued. This particular bond ensures that the contractor adheres to the standards of the Utah Constructions Trades Licensing Act (Utah Code Ann. Title 58, Chapter 55) when completing his or her construction projects.
More specifically, the purpose of this bond is to allow for claims to be made against the principal (contractor) by consumers if they suffer financial loss or other harm as a result of the principal’s faulty work.
Contractor license bond details
This specific bond type remains in full force unless canceled by the surety. The surety can cancel the bond at any time by providing written notice of cancellation to the contractor and the Division of Occupational and Professional Licensing. Cancellation becomes effective 60 days after the division receives the notice.
Become a licensed contractor
To obtain a contractor’s license to work in Utah, applicants must submit the following information:
- form of business entity
- Social Security Number
- legal business name/DBA
- Employer Identification Number
- licensing and examination fees
- a surety bond in the proper amount
- general liability insurance
- qualifying questionnaire, if applicable
- proof of qualifier exams and prior industry experience
- and more
Apply for your surety bond
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