Other Specialty Contractor License ($15,000) Bond - Statewide in Utah

Brief Summary

In Utah a contractor bond is usually a financial responsibility answer, not a job guarantee. When a signed questionnaire is not the route you are taking, a $15,000 bond on file lets the license issue, renew or be reinstated without tying up cash.

Utah Code 58-55-306 makes every contractor applicant, and every licensee renewing or reinstating, prove financial responsibility to the Division of Professional Licensing and the commission. That is done either with a signed questionnaire or with a bond in an amount and form set by the commission with the director's concurrence. This listing covers the $15,000 bond for a specialty contractor license. Confirm the current amount and bond form with the Division before the bond is issued.

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How to Apply for a Other Specialty Contractor License ($15,000) Bond:

• Decide whether you are showing financial responsibility with the signed DOPL questionnaire or with a bond.
• Confirm the specialty classification you hold or are applying for under R156-55a-301.
• Ask the Division for the current bond amount and the prescribed bond form before ordering the bond.
• Provide the license applicant name exactly as it appears on the DOPL application.
• Supply owner details for underwriting, since the Division itself weighs owners' personal finances for unincorporated entities.
• Return the executed bond to the Division with the application, renewal or reinstatement.

Detailed Information About the Utah Other Specialty Contractor License ($15,000) Bond:

Most contractors never post this bond

Utah does not require a bond from every contractor by default. Under Utah Code 58-55-306(1), an applicant for a new license, a renewal or a reinstatement shows financial responsibility one of two ways. The first is completing and signing a questionnaire developed by the Division of Professional Licensing. The second is submitting a bond in an amount and form determined by the commission with the concurrence of the director. The $15,000 figure on this page is the listed amount for a specialty contractor license. The statute leaves the amount to the commission, so confirm it with the Division before the bond is issued.

Financial responsibility does not end at licensing

Subsection (2) requires a licensee to maintain financial responsibility for the whole period of licensure. The Division may audit at random or when it finds a reasonable need, and the burden of proof sits with the applicant or licensee. Utah Admin. Code R156-55a-306 lists what an audit looks at, including judgments, child support obligations, restitution orders, tax liens, collection actions, bankruptcy schedules, a history of late payments, current financial statements and tax returns, and a current credit report acceptable to the Division.

Unincorporated entities face a second formula

For an LLC, partnership or other unincorporated entity, the Division considers the personal finances of every owner. If an owner's finances show the business lacks financial responsibility, the Division may bar that owner, bar the entity unless the owner dissociates within 10 days, or require a bond. That bond is either an amount set by the commission or 20% of the annual gross distributions from the entity to its owners, and it must cover unpaid obligations of the contractor and any failure of the owners to pay income and self-employment taxes on those distributions.

What the bond guarantees

The bond stands behind the contractor's financial responsibility to the State of Utah. If the contractor fails the obligations the bond secures, a valid claim is paid by the surety and the contractor must repay the surety.

Eligibility and Requirements for a Utah Other Specialty Contractor License ($15,000) Bond:

• Bond amount and form set by the commission with the director's concurrence under Utah Code 58-55-306(1)(b).
• Listed amount of $15,000 for a specialty contractor license.
• Financial responsibility kept up for the full license period, not only at application.
• For unincorporated entities, a possible bond of 20% of annual gross distributions to owners when an owner's finances fall short.
• Records the Division may audit, such as financial statements, tax returns and a current credit report.

Utah Other Specialty Contractor License ($15,000) Bond FAQs:

Official and Additional Resources for the Utah Other Specialty Contractor License ($15,000) Bond: