Who this applies to
Utah links the license bond to financial responsibility. Under Utah Code § 58-55-306(1), every applicant for a contractor license, and every licensee applying for renewal or reinstatement, demonstrates financial responsibility to the Division of Professional Licensing (DOPL) and the Commission in one of two ways [2]:
- by completing and signing the Division's questionnaire, certifying that the information in it is true and accurate; or
- by submitting a bond in an amount and form the Commission determines with the concurrence of the director.
A licensee keeps its financial responsibility up for the whole period of licensure, and the Division may audit it at random or on a finding of reasonable need [2].
A bond can also be required. Where the applicant or licensee is an unincorporated entity and the personal finances of its owners lead the Division to find that it lacks financial responsibility, the Division may require the owners, the applicant or the licensee to submit a bond [2].
What the rule says
Utah Admin. Code R156-55a-602 sets the terms of a license bond provided under §§ 58-55-306(1)(b) and 58-55-306(5)(b)(iii) [1]. The surety must be acceptable to the Division and listed in U.S. Treasury Circular 570 [1].
The minimum amount is the greater of two figures [1]:
- After a bankruptcy. Where a bankruptcy petition has been filed, is pending or was discharged within the last three years, by an owner, a qualifier, the licensee entity or a prior entity of the owners or qualifiers, 30% [1] of the total liabilities listed on the bankruptcy schedules (Forms 106).
- Where debts reach $1,000. Where cumulative outstanding debts, judgments, child support obligations, liens and obligations total $1,000 [1] or more, the greater of 30% [1] of that total or a floor set by classification: $50,000 [1] for any general contractor classification except R100, $25,000 [1] for R100, and $15,000 [1] for every other classification.
The classification floors sit inside the second branch only; the rule does not state them as a minimum for every bond [1].
A bond the Division requires of an unincorporated entity under § 58-55-306(5)(b)(iii)(B) is instead 20% [1] of the annual gross distributions from the entity to its owners [2].
DOPL and the Commission may raise the amount where financial, criminal or disciplinary history shows it is not enough, and may accept a lower amount on clear and convincing evidence [1].
How to comply
Licensing runs through DOPL (dopl.utah.gov).
- Choose the route. Section 58-55-306(1) offers the signed questionnaire or a bond [2].
- If the route is a bond, work out the minimum. Check for a bankruptcy petition in the last three years and total the outstanding debts, judgments, child support obligations and liens; the branch that applies sets the figure, and the classification floor comes in only where that total is $1,000 [1] or more.
- Use an acceptable surety listed in U.S. Treasury Circular 570 [1].
- Keep it in force. The bond stays in place until DOPL gives written permission to discontinue it [1]. It covers failure to maintain financial responsibility, failure to pay obligations, and owners' unpaid income or self-employment taxes [1].
This page restates the statute and the rule. DOPL decides the bond on any individual application, and the texts in the Sources below are the reference to check against.
What changed recently
The current text of Rule R156-55a took effect on August 7, 2026 [1].
Related
- Contractor license bond cost calculator: a premium range for a $50,000 [1], $25,000 [1] or $15,000 [1] bond.
- All states' bond requirements: Utah's conditional bond beside every other state.