Utah General Contractors - Business and Law Practice Exam

What must a contractor do if their license has lapsed for more than two years and they continue to practice contract work?

1. Reapply for a new license

2. Pay a renewal fee

3. Pay the current new application fee

4. Attend a training seminar

The correct answer is: Pay the current new application fee

A contractor whose license has lapsed for more than two years is required to pay the current new application fee to obtain a new license. This is because a lapse exceeding two years typically disqualifies the contractor from simply renewing their old license; instead, they must go through the reapplication process, which involves meeting the current requirements for licensure as if they were applying for the first time. This process ensures that the contractor is up to date with current regulations, standards, and practices in the industry. By paying the new application fee, the contractor officially indicates their intention to re-enter the licensed profession and undergoes the necessary evaluations or checks mandated by the licensing authority. Thus, this action not only formalizes their return to practice but also reinforces the importance of maintaining an active and legally compliant status in their work as a contractor.