Utah Contractor Practice Exam

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Study for the Utah Contractor Exam with comprehensive quizzes and resources designed to help you master the content. Engage with flashcards and multiple-choice questions that equip you with the knowledge needed to pass the exam!

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At what contract value does an owner require a contractor to supply a bond to avoid personal liability?

Exceeds $10,000
Exceeds $20,000
Exceeds $50,000
Exceeds $100,000

The correct answer is: Exceeds $50,000

In the context of construction contracts in Utah, the requirement for a contractor to supply a bond is primarily related to protecting the owner from personal liability. When the contract value exceeds a certain threshold, typically set by law or regulation, the contractor must provide a performance bond or payment bond. In Utah, the threshold that triggers this bonding requirement is indeed set at $50,000. This means that if a contract exceeds this amount, the owner is protected from potential personal liabilities that could arise from issues like non-payment of subcontractors or suppliers, or failure to complete the work as agreed. By requiring a bond, the owner ensures that there is a financial guarantee that the contractor will fulfill their obligations. Understanding this threshold is essential for contractors and owners alike, as it delineates when formal bonding becomes necessary to safeguard against financial risks associated with construction projects.