Utah licenses general contractors at the state level. Contractors that fall short of the state’s financial responsibility standards may have to furnish a contractor license bond. Some municipalities license other types of contractors and may require the purchase of a contractor license bond.
Utah’s “Little Miller Act,” the state’s version of the federal Miller Act, requires performance bonds and payment bonds for all state-funded projects, in an amount equal to the project’s value. The Little Miller Act does not apply to private construction projects, but private project owners may also choose to require performance and payment bonds from their contractors. Both state and local contracting entities and private project owners may make providing a bid bond a prerequisite for submitting a proposal or quote in a competitive bidding situation.
Other construction bonds that contractors doing business in Utah may need to purchase include:
- Maintenance bonds
- Subdivision/site improvement bonds
- Supply bonds
- Solar decommissioning bonds
- Right of Way bonds
- Contractor License bonds
