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Frequently Asked Questions

Answer:

Any previous paid work experience in the construction industry qualifies as experience. For a general contractors license (B100, E100, or R100), at least two years (or 4,000 hours) of paid work experience is required in the construction industry. No experience is required for a specialty contractor license. “Experience in the construction industry” is more broad in scope than the definition of “construction trades” and includes: (a) Experience in the construction industry regardless if paid as a W-2 or as an owner, and regardless of whether licensed or exempt; (b) Experience while performing construction activities in the military; (c) Experience obtained under the supervision of a construction trades instructor as a part of an educational program is qualifying experience for a contractor's license. A passing score on the NASCLA Accredited Examination for Commercial General Building Contractors shall satisfy the experience requirement. Additionally, a person holding a four-year bachelor’s degree or a two-year associate’s degree in Construction Management shall satisfy the experience requirement. A person holding a Utah professional engineer license also satisfies the experience requirement.

Answer:

Yes, you need to renew a license that has been placed in inactive status.  You can place your license on inactive status at anytime, as long as it is in good standing.  You will need to complete a general questionnaire and an inactivation form and pay an inactivation fee.  An inactive license is exempt from liability insurance and financial responsibility requirements.  A license in an inactive status must be reactivated before it can be used.  When you reactivate your license, you will need to fill out the required questionnaire.  Provide proof of liability insurance, financial responsibility and continuing education.  Active and inactive licenses must be renewed every two years.

Answer:

Yes.  Utah law requires that every active contractor license must maintain general liability insurance and financial responsibility.  Only inactive licenses are exempt from these requirements.

Answer:

No, not if the applicant's qualifier has been involved in construction as a qualifier in the same license classification.  On the application just put "see prior license number" (and list that number) on all sections that ask for testing and experience.  (List the most recent license number where the qualifier was approved for the same classification.)

Answer:

If you are forming a new entity and dissolving an existing entity or sole proprietorship, you must register the new entity with the Division of Corporations and submit a license application to DOPL with the required fees and documents.  The existing license may be surrendered at the time the new one is issued.  (Contact UTCLC for assistance in doing this.) Financial responsibility, liability insurance, workers' comp insurance, etc. will need to be maintained on the license until it is surrendered or expires.

Answer:

Business must be conducted in the name on the license.  However, business can be conducted under another name by means of a DBA.  DBA's are not automatically attached to a license just because they are registered with the Division of Corporations.  The DBA must be submitted to DOPL as part of the application or later by filling out a "Contractor Name Change or Add a DBA" form (found under LICENSING > Additional Forms).  The DBA must be owned by the licensee (name on contractor license) and be registered and in an active status with the Utah Division of Corporations.  Once a DBA expires, it can not be used by a licensee to conduct business.

Answer:

As a sole proprietor the license will be issued to the individual in his/her own given name.

Answer:

Licenses are issued to entities (corporations, LLC's, partnerships, joint ventures, etc.), not to the owner or qualifier of the entity.  Registration allows the entity to legally do business in the state of Utah.  Therefore, before a license for a corporation, LLC, partnership, joint venture, etc. can be issued, the entity must be registered with the Division of Corporations & Commercial Code.

Each year, Corporations sends the renewal forms to the address of who is listed on their records as the registered agent.  Mail from Corporations and DOPL is not forwarded.  Therefore, in order to receive information from Corporations and DOPL, both agencies need to be notified in writing of any address change.  If a Corporation registration for a business entity (example: Inc., LLC) expires, the statute automatically expires the contractor license, no matter what the expiration date is on the contractor license.  Before a contractor's license can be reinstated by DOPL, the business entity must also be reinstated with Corporations.  NOTE: partnerships, joint ventures, foreign (out-of-state) registrations (LLC's, corporations, etc.) that expire will not be able to reinstate their corporate registration or contractor license.  They will have to register a new entity with the Division of Corporations & Commercial Code and apply for a new contractor license.

Answer:

No.  Licensing fees submitted with an application are processing fees and are not refundable.

Answer:

Contractor applications are reviewed and processed within 4-6 weeks, after which a license may be issued.  If, after review, it is determined that further information is needed to complete the application process, we will send you a letter requesting the needed information, or requesting further clarification.  All contractor licenses expire on November 30th, of each odd year (i.e. 2007, 2009, 2011, etc.)

Answer:

The only legal way to "work under" any license is as an officer or W2 employee of a licensed contractor.

Answer:

It is illegal to pay an employee who is an unlicensed contractor on a 1099.  To be legal an employer needs to withholds federal and state taxes from their employees' pay and cover them with worker's compensation and unemployment insurance.  A 1099 is only appropriate when using an independently licensed contractor or a licensed sub-contractor.  Individuals that are paid on a 1099 without being licensed could have action taken against them for contracting without a license and the party that hired them for hiring an unlicensed contractor.

Answer:

NO.  The one who "loans" their license and the one who "borrows" the license are both guilty of class A misdemeanors.  The "loaner" for "aiding and abetting" and the "borrower" for contracting without a license.

Answer:

When a qualifier leaves a licensed contractor business, both the qualifier and the licensee are required to inform DOPL in writing, within 10 days of the last day of employment, stating that the qualifier is no longer employed by the licensee.  The licensee then has 60 days, from that date, to replace the qualifier.  If the written notice is not sent to DOPL within 10 days and the licensee doesn't replace the qualifier within 60 days, the license can be revoked.  The license stays with the company; it does not "belong to" nor does it "go with" the qualifier.

Answer:

You must submit a completed contractor application packet, along with the required fees (listed in the application).  You may obtain an application from our web site.  The application packet includes fees and testing information.

Answer:

No, Utah does not have reciprocity. Instead, Utah allows for licensure by endorsement. However, as of May 14, 2019, no trade exam are required for any Utah contractor licenses. The Utah Contractor Business & Law exam is still required for general contractors (B100, R100, E100, and plumbing and electrical contractors). Individual electrical and plumbing licenses also still require exams. As a result, applications for endorsement for contractor licenses are moot because trade exams are not required in Utah. Please apply with the standard application.

Answer:

Refer to the Utah Construction Trades Licensing Act and Rules. If you are still not sure of the correct license classification contact DOPL. DOPL can be contacted by phone at (801) 530-6628 or (866) 275-3675 (toll free within Utah).