Utah Contractor Practice Exam

What must a contractor do to ensure compliance when hiring subcontractors?

1. Pay them within 15 days of project completion

2. Ensure they are licensed where required

3. Only hire those who offer the lowest bid

4. Obtain their business licenses annually

The correct answer is: Ensure they are licensed where required

To ensure compliance when hiring subcontractors, a contractor must ensure that any subcontractors they hire are properly licensed where required. This is vital because state laws often mandate that specific types of work, especially those that require specialized skills or involve significant safety risks, be performed by licensed professionals. By choosing licensed subcontractors, the contractor not only adheres to legal requirements but also helps to ensure that the work meets established safety and quality standards. Ensuring that subcontractors are licensed protects the contractor from potential legal issues and liability that could arise from hiring unqualified workers. Moreover, it reflects the contractor’s commitment to professionalism and responsible practices within the industry, which can lead to better project outcomes and customer satisfaction. Other options, while they may seem relevant to managing subcontractors, do not directly address legal compliance in the same fundamental way. For instance, paying subcontractors within 15 days after project completion is a good practice but doesn’t necessarily ensure they are qualified for the work. Similarly, hiring solely based on the lowest bid can compromise quality and compliance. Lastly, obtaining business licenses annually might be part of good management practices but does not specifically ensure that subcontractors are licensed for the work they will be doing on the project.