Contracting

Frequently Asked Questions (FAQs)

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.

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.

It is illegal to pay an employee who is an unlicensed contractor on a 1099. To be legal an employer needs to withhold 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.

Send the application to DOPL, PO Box 146741, Salt Lake City, UT 84114-6741. Applications can also be hand-delivered to DOPL at 160 East 300 South, First Floor, Salt Lake City, Utah 84111. After your application has been received by DOPL, please wait 4-6 weeks before checking on the status of your application. NOTE: Always make a copy of anything you send to DOPL and use verification, such as certified mail, to provide proof of delivery.

Contractor applications are reviewed and processed as we received them. Because of many factors, we cannot give you an estimated time that your application will be processed. If you have not received a response after 4 weeks, please contact our office. 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.).

The best method is to send your application by certified mail, return receipt requested or send it though a delivery service that tracks items delivered by them. Please do not call in to check on the application's status until after 4-6 weeks have passed since DOPL received it. If after 4-6 weeks you have not received a license or been contacted by DOPL to furnish additional information, you can inquire as to the status of the application. NOTE: Always make of copy of anything you send so you have it to refer to should a question arise. Send the application to DOPL, PO Box 146741, Salt Lake City, UT 84114-6741.

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.

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 here). 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.

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 DOPL 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.

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.