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Utah Contractor Bonds

Utah Contractor Bond License Guide

Utah requires contractors to obtain a contractor bond to become licensed. The amount for these bonds varies depending on the type of contractor, location, and project. Some of these bonds can be issued instantly online for a set premium or are prorated for the bond term’s end date.

Why are contractor bonds required in Utah?

Multiple counties and cities require contractors in Utah to post surety bonds prior to starting work. These bonds ensure the principal (contractor) will abide by all applicable rules and legislation outlining the classification-specific work, in addition to protecting consumers from damages caused by negligent or faulty work. Obligees (Utah government entities requiring the bond) place the liability on the principal.

Affected contractors can file a claim against the surety bond; if found to have validity, the surety (the company that financially backs the bond) will pay the claim up to the bond’s full amount. However, the principal is required to reimburse the surety in full for any money paid out.

General Contractor License Bond

General contractors are required by Utah to become licensed to work in the state. Bond amounts will vary by the contractor’s classifications.

  • Post a surety bond for a one-year term. The bond is currently underwritten, meaning the applicant’s credit history must be reviewed by a surety underwriter to determine the cost. The bond amounts are set for specific classifications:

    • Miscellaneous classifications not listed below: $15,000

    • Residential & Small Commercial license classification: $25,000

    • General Building or General Engineering contractor license classification: $50,000

    • Other: $1,000 to $500,000

      • The amount is determined by the commission and equal to 20% of the annual gross distributions from the unincorporated entity to its owners; that includes coverage for unpaid obligations incurred by the licensee contractor and any failure of the licensee contractor owners to pay income taxes and self-employment taxes on the gross distributions from the unincorporated entity to its owners.

Along with the bond and application, contractors must submit one item from each of the following sections:

  1. Pre-Licensure Course Requirement

  2. Exam Requirement

  3. Experience Requirement

For more information on different classifications, visit the Department of Commerce’s application page.

City of Midvale Right-of-Way Encroachment Contractor Bond

The City of Midvale’s Division of Engineering requires contractors to post a $5,000 surety bond. The right-of-way encroachment contractor bond carries a cost of $175 for a two-year term. Along with the bond, contractors must submit a right-of-way permit with an additional $250 base fee and a commercial business license for the City of Midvale. Included in the business license application must be:

Provo City Excavation Contractor Bond

A $10,000 bond is required of water works contractors by Provo City. Purchase your water works bond instantly online for a two-year term for a $175 premium.

Provo City requires excavation contractors to submit a permit application. Applicants must meet the following pre-qualifications to submit their application:

  • Contractor’s Proof of Responsibility and Statement of Qualifications

  • Copy of current contractor’s license

  • Liability insurance with a $1,000,000 minimum

Utah County and City Contractor Bonds

Many contractors are required to be bonded at the local level. Different cities may have additional license or permit requirements that require the applicants to be bonded. Most of these bonds can be purchased instantly through our secure checkout. Check with the obligee to ensure your bond is obtained with all the correct information.

Search all contractor bonds in Utah

Over the years, our bonding experts have put together the most comprehensive surety bond library. Most of our contractor bonds can be purchased instantly online in only a few minutes.

Use the list below to browse all of our available contractor bonds in Utah You can also try searching by bond amount, obligee, or bond name.