Utah Contractor License Bond Guide
If you're doing any type of construction work in Utah, you need to purchase a surety bond as part of the license process.
Bond Overview
- Purpose: To ensure contractors adhere to contracts, state regulations and laws
- Who Needs It: All classifications of state-licensed contractors in Utah
- Regulating Body: The Utah Department of Commerce, Division of Professional Licensing
- Required Coverage: $15,000–$50,000, based on the license classification
- Premium Rates: Typically 1.5–5% of the bond amount, credit-based
Various cities and counties also require surety bonds for local licensing and permitting. Learn about the various bond types and bonding process in this guide.
What Is a Utah Contractor License Bond?
A Utah contractor license bond is a type of surety bond that ensures a contractor will perform their work properly and comply with the law. Filing a bond is a requirement before a construction contractor can be licensed to work in Utah as well as various cities and counties.
How Much Do Utah Contractor Bonds Cost?
Statewide Utah contractor license bond costs start at $150 annually. Your personal premium will be provided after a quick application review. Exact pricing varies depending on your Utah contractor license classification and its required bond amount.
Most city-specific Utah contract bonds are available for instant purchase between $100–$175. If your bond requires underwriting, your personal premium cost will be provided within one business day of applying.
If you work outside of Utah, we also offer contractor license bonds nationwide.
Who Needs a Utah Contractor Bond?
Under Utah Annotated Code 58-55-306, individuals must file a surety bond when applying for a state contractor license to ensure they comply with the Construction Trades Licensing Act. Your license classification determines your required surety bond amount:
- B100 General Contractor and E100 General Engineering Contractors: $50,000 surety bond
- R100 Residential/Small Commercial Contractors: $25,000 surety bond
- All other license classifications: $15,000 surety bond
Well drillers also need to be licensed and bonded to work in the state per Utah Annotated Code 73-3-25.
Additionally, if you work in one of the following municipalities, you may need a contractor bond before performing certain types of work in Utah:
- Bountiful
- Cottonwood (for wastewater collection system contractors)
- Magna Metro Township (for site improvement work)
- Provo (for excavation permit)
- Granger-Hunter (for excavation permit)
- Pleasant Grove
- Murray (for excavation permit)
- Salt Lake City (for excavation permit)
- Springville
Other Construction Bonds in Utah
You may need a Utah bid bond, performance bond or other contract bonds for large construction projects. These protect the public and project owners if contractors fail to perform as promised.
How to Get a Utah Contractor License Bond
You can buy or apply for any Utah contractor bond by submitting an online request form. Simply find the bond you need and enter your information. It only takes two minutes!
To apply for a statewide Utah contractor license bond, you’ll need to provide the following information for approval with the Division of Occupational and Professional Licensing:
- Individual contractor/construction company name
- Address
- License type
- Company owners, if applicable
Apply now and we’ll contact you within one business day to discuss next steps. Once your order is processed, we’ll email or mail your official bond documentation.
How Fast Can I Get My Bond?
SuretyBonds.com offers the fastest and easiest way to get Utah contract bonds. You can purchase most Utah contractor license bonds online 24/7 with instant digital delivery. If your obligee requires the original bond form with wet signatures, we offer an overnight shipping option.
How Do Utah Contractor License Bonds Work?
Utah contractor license bonds protect the public by creating a legally-binding contract between three parties:
- Principal: The bonded contractor
- Obligee: The licensing entity
- Surety: The surety bond provider
If the principal the bond terms, the surety company will pay valid claims to harmed parties up to the full bond amount. Then, the principal is responsible for reimbursing the surety.
Who Regulates Utah Contractor Licensing?
Various government agencies in Utah oversee licensing requirements depending on the contractor classification and location:
- The Utah Department of Commerce Division of Professional Licensing enforces state licensing requirements for contractors.
- The Utah Division of Water Rights manages well driller licensing.
- Various other local government agencies oversee licensing at the city or town level.
How to Become a Licensed Contractor in Utah
Learn detailed steps on how to get a Utah contractor license by reviewing our comprehensive guide.
You must meet the following Utah contractors license requirements to submit your licensed contractor application:
- Complete the Utah DOPL contractor license application.
- Complete the pre-license education requirements.
- Classify your contractor license specialty, if applicable.
- Purchase general liability insurance.
- Purchase a contractor license surety bond in the required amount.
- Register your business with the Utah Division of Corporations and Commercial Code.
- Get your Federal Employee Identification Number (FEIN).
- Follow the state guidelines for Workers Compensation Insurance or a waiver based on whether or not you have employees.
If you're applying as a general contractor, you must also provide the following.
- Proof of two years of paid work experience
- Proof of passing the Utah Contractor Business and Law Exam
- If a plumbing or electrical contractor, trade master license
