Summary
Operating as a general contractor in Salt Lake City requires both state licensing through Utah's Division of Professional Licensing and local business registration with the city. The process involves demonstrating experience, passing examinations, maintaining proper insurance coverage, and posting a surety bond. Utah's licensing requirements are moderately stringent, requiring 4 years of experience and ongoing continuing education. Salt Lake City's permitting process is relatively streamlined through their online portal, though proper planning for inspections and approval timelines is essential for project success. The market is competitive with steady demand driven by Utah's population growth and Salt Lake City's urban development initiatives.
License Requirements
General contractors in Utah must obtain a license through the Utah Division of Professional Licensing (DOPL). Contractors need either a Contractor (B-100) license for unlimited work or specialty classifications based on project scope. Requirements include 4 years of experience (or equivalent education), passing the PSI exam covering business law and trade knowledge, and submitting fingerprints for background check. Initial license fee is $158, with biennial renewal at $122. Continuing education of 8 hours is required every two years. Salt Lake City requires a separate business license through the City Recorder's Office, costing $75-150 annually depending on business size.
Permit Requirements
Building permits are required through Salt Lake City's Building Services Division for most construction projects. Applications can be submitted online via the Citizenserve portal or in person at 451 S State Street. Standard permits range from $50-500 for residential work and $200-2000+ for commercial projects. Plan review typically takes 3-10 business days for residential and 10-20 days for commercial. Electrical, plumbing, and mechanical permits may be required separately. All work must pass inspections at various stages including footing, framing, electrical rough-in, plumbing rough-in, insulation, and final inspection.
Insurance Requirements
Utah requires general liability insurance of at least $50,000 per occurrence for licensed contractors. Workers' compensation insurance is mandatory for businesses with one or more employees, including owner-operators in construction. Many clients and Salt Lake City projects require higher coverage limits of $1 million general liability. A contractor license bond of $20,000 is required, which can be obtained through surety companies for approximately $200-800 annually depending on credit score. Some municipal projects may require additional performance and payment bonds.
Typical Cost Ranges
Salt Lake City general contracting projects typically range: Kitchen remodels $25,000-80,000, bathroom remodels $15,000-45,000, room additions $40,000-120,000, basement finishing $25,000-65,000, whole house renovations $100,000-400,000, new home construction $250-450 per square foot, and commercial tenant improvements $50-150 per square foot. These ranges reflect Salt Lake City's moderate cost of living and competitive construction market as of 2024.
Compliance Checklist
- ✓Obtain Utah contractor license (B-100 or appropriate specialty) through DOPL
- ✓Register business and obtain Salt Lake City business license
- ✓Secure general liability insurance ($1M recommended) and workers' compensation
- ✓Purchase required $20,000 contractor license bond
- ✓Apply for building permits through Salt Lake City Building Services before starting work
- ✓Ensure all workers are properly licensed for their trades (electrical, plumbing, HVAC)
- ✓Schedule required inspections at proper construction phases
- ✓Maintain current registrations with Utah tax commission for sales tax purposes
READYDOCS
These are the documents Iris tracks for you.
Store them in one place. Get alerts before anything expires. Ask Iris anything from the job site.
$19/month — First month free. No credit card required.
No credit card. Cancel anytime.