Utah licensing exam

Utah Contractor Business & Law Exam: Practice Test & Licensing Guide

The Business & Law exam required for Utah B100, R100, E100, H100, E200, E201, P200 and P201 contractor licenses.

Questions
60
Time limit
2 hours
Passing score
70%

Full practice test: $19One-time payment · 12 months of access

Try 10 free practice questions

No sign-up. Every answer explains the rule and tells you where to find it in your book.

Question 1 of 10Licensing

A person without a contractor license agrees to remodel a homeowner's bathroom. Under the Utah "handyman" exemption, the contracted value of the job, including labor, materials and all changes, must be less than what amount?

Requirements at a glance

Who takes itThe qualifier for B100, R100, E100, H100, E200, E201, P200 or P201
Experience (B100/R100/E100)2 years (4,000 hours) of paid construction experience, or an alternative such as a construction management degree
Education25-hour pre-license course (specialty) or the 5-hour business & law course (general classes)
ExamUtah Business & Law: 60 questions, 2 hours, 70%, open book
InsuranceGeneral liability: $1,000,000 per incident, $2,000,000 total, with DOPL as certificate holder
Business setupEntity registration, EIN, and workers' comp (or a waiver if you have no employees)

Qualifiers for the B100 General Building, R100 Residential & Small Commercial, E100 General Engineering, H100 HVAC, E200/E201 Electrical and P200/P201 Plumbing contractor classifications. Specialty contractors (roofing, concrete, landscaping, framing, etc.) do not take a state exam in Utah; they complete the 25-hour pre-licensure course instead.

How to get licensed, step by step

  1. Pick your classification

    B100 (general building), R100 (residential and small commercial) and E100 (general engineering) need the Business & Law exam. So do H100 HVAC and the electrical and plumbing contractor classes, which also need a master-licensed qualifier. Specialty S-classes (roofing, concrete, framing, landscaping) don't take an exam.

    DOPL: general contractor license (opens in a new tab)DOPL: contracting laws and rules (opens in a new tab)

  2. Take the pre-license course

    Complete the DOPL-approved course from ABC, the Utah Home Builders Association or AGC of Utah. General classifications need the 5-hour business & law course unless your 25-hour course was finished before July 1, 2019.

    DOPL-approved pre-license course providers (PDF) (opens in a new tab)

  3. Register and schedule with Prov

    Utah's licensing exams are given by Prov, Inc. Create an account, pick "Business and Law", and choose a testing center (21 sites from Logan to St. George) or take the written exam from home through Examroom. Reschedule at least 3 business days ahead or you lose the fee.

    Register for your exam with Prov (opens in a new tab)

  4. Pass the exam

    60 questions in 2 hours, 70% to pass. Bring the NASCLA Contractor's Guide (Utah 4th ed.) or the Utah Contractor Education Book, tabbed and highlighted. Your score is given at the test site. If you fail, wait 30 days to retake.

    DOPL: contracting exam information (opens in a new tab)

  5. Set up the business

    Register your entity, get an EIN, buy general liability insurance ($1M per incident / $2M total) with DOPL listed as certificate holder, and either carry workers' comp or get a waiver if you have no employees. If you do have employees, register for Utah withholding and unemployment insurance.

    Utah Division of Corporations (register your business) (opens in a new tab)IRS: get an EIN (opens in a new tab)Utah Labor Commission (workers' comp / waiver) (opens in a new tab)

  6. Apply to DOPL

    Submit the contractor application online with your exam result, course certificate, experience and insurance documents.

    DOPL online application (opens in a new tab)

How to prepare

  • Use the NASCLA book's index. Most questions are written straight from it: lien deadlines, payroll tax rates, contract terms.
  • Know the math cold: markup vs. margin, overhead and profit, payroll taxes and overtime, simple ratios and depreciation. These are quick points if you've practiced them.
  • Licensing is the biggest section (10 of 60). Know Utah's classifications, who needs a license, renewal and CE, and what counts as unprofessional conduct.
  • Start with the free questions above to find your weak topics, then drill those first.
  • Take at least two full timed simulations before exam day. Timing is where most people fail open-book exams.
  • Read every explanation, including for questions you got right, and look the section up in your own book.

Books for this exam

This is an open-book exam: you can bring the references below, and most questions come from the NASCLA Contractor's Guide. Tabs and highlighting are allowed. Free online copies are read-only and can't be used in the exam room.

  • NASCLA Contractor's Guide to Business, Law and Project Management, Utah 4th EditionEssential

    Most Business & Law questions are written from this book: licensing, liens, contracts, payroll taxes, estimating.

    NASCLA store (opens in a new tab)

  • Utah Contractor Education Book (Home Builders Association of Utah)

    Allowed instead of the NASCLA guide. It comes with the HBA of Utah pre-license course.

    Approved course providers (opens in a new tab)

  • Utah Code 58-55 (Construction Trades Licensing Act)

    Licensing, supervision and unprofessional conduct. Print and tab it.

    Read free (opens in a new tab)

Official reference list (as published by the testing agency)
  • NASCLA Contractor's Guide to Business, Law and Project Management, Utah 4th Edition
  • or: Utah Contractor Education Book (Home Builders Association of Utah)

What's on the exam

Official content outline from Prov, Inc. (number of questions per topic):

TopicQuestions
Licensing10
Estimating and Bidding6
Contract Management6
Labor Laws6
Financial Management6
Project Management5
Risk Management5
Tax Laws5
Business Organization4
Safety4
Lien Laws3

Exam day details

  • Administered by Prov, Inc. for the Utah Division of Professional Licensing (DOPL).
  • Fee: Paid to Prov when you schedule; check provexam.com for the current fee.
  • Open book: references may be highlighted and permanently tabbed.
  • Taken at Prov testing centers across Utah or online through Examroom.
  • DOPL allows 3 attempts, 30 days apart, with each later retake 180 days apart.
  • General classifications also require the 5-hour business & law course (unless your 25-hour course was completed before July 1, 2019).
  • Applicants with one year of licensed experience in another state, in a similar scope and in good standing, may be exempt from the exam.

Note: The question count, time and topic weights come from Prov's published contracting handbook (2020 edition, the version DOPL links to). Confirm with Prov when you schedule in case it has been updated.

Frequently asked questions

Do specialty contractors in Utah have to pass an exam?

No. Under Utah Code 58-55-302, specialty classifications (S-classes such as S280 roofing or S330 landscaping) require the 25-hour pre-licensure course but no division exam. The Business & Law exam applies to the B100, R100, E100, H100, E200, E201, P200 and P201 classifications.

Is the Utah Business & Law exam open book?

Yes. You may bring the NASCLA Utah Contractor's Guide (4th ed.) or the Utah Contractor Education Book, tabbed and highlighted.

How many questions are on the exam and what score do I need?

Prov's handbook lists 60 questions in 2 hours with a 70% passing score, covering licensing, estimating, contracts, labor law, financial and risk management, taxes, safety and lien law.

Free questions with answers

Show all 10 free questions and answers
  1. A person without a contractor license agrees to remodel a homeowner's bathroom. Under the Utah "handyman" exemption, the contracted value of the job, including labor, materials and all changes, must be less than what amount?

    Answer: $7,000

    Utah Code 58-55-305(1)(h)(i) exempts alteration, repair, remodeling or improvement work with a contracted or agreed value of less than $7,000, counting both labor and materials and all changes or additions to the work. $3,000 is a different threshold in the same subsection: above it the unlicensed person must file a one-time insurance affirmation with DOPL. Even under the exemption, plumbing, electrical, HVAC, gas and similar work must still be done by properly licensed or certified people. Note: Utah Code Title 58, Chapter 55 is recodified effective January 1, 2027; this exemption moves to 58-55-110(2)(n) with the same $7,000 limit.

    Reference: Utah Code Title 58, Chapter 55 (Utah Construction Trades Licensing Act), 58-55-305(1)(h)(i)

  2. An R100 Residential and Small Commercial contractor wants to bid a commercial office building. What are the maximum size limits for commercial work under the R100 classification?

    Answer: 3 stories above ground and 20,000 square feet

    Utah Code 58-55-102(42) defines the residential and small commercial contractor's scope as single-family homes, multifamily residences up to four units, and commercial construction of not more than three stories above ground and not more than 20,000 square feet. Larger commercial work requires a B100 General Building license. Plumbing, electrical, mechanical and manufactured-housing installation are excluded and must be subcontracted to licensed specialists. The 10/1/2026 amendment of 58-55-102 keeps this definition at subsection (42). Note: Utah Code Title 58, Chapter 55 is recodified effective January 1, 2027; the definition moves to Part 2 (58-55-202) with the same 3-story / 20,000 sq ft limits.

    Reference: Utah Code Title 58, Chapter 55 (Utah Construction Trades Licensing Act), 58-55-102(42)

  3. A framing subcontractor starts work on a private project and wants to keep the right to file a construction lien. How long after first providing work does it have to file a preliminary notice with the State Construction Registry?

    Answer: 20 days

    Utah Code 38-1a-501(1)(a) requires anyone who wants to claim a construction lien to file a preliminary notice with the registry within 20 days after the day they start providing construction work. One notice per project covers all work under a single original contract (38-1a-501(1)(b) and (3)). Under 38-1a-501(1)(e), a person who fails to file a required preliminary notice may not claim a construction lien.

    Reference: Utah Code Title 38, Chapter 1a (Preconstruction and Construction Liens), 38-1a-501(1)(a)

  4. A general contractor on a private commercial project in Utah submits a progress billing of $86,000. Under Utah's retainage law, what is the most the owner may withhold as retention from this payment?

    Answer: $4,300

    Utah Code 13-8-5(3)(a) caps retention at 5% of each payment, and 13-8-5(3)(b) caps total retention at 5% of the total construction price. $86,000 x 0.05 = $4,300. $8,600 results from the common 10% retainage used in other states, and $6,450 (7.5%) and $2,580 (3%) use the wrong rate. Separate rules in 13-8-5(8) allow withholding more to cure a default or incomplete work. Note: 13-8-5 is amended effective January 1, 2027, but only its cross-references change; this rule is unchanged.

    Reference: Utah Code 13-8-5 (Retention proceeds), 13-8-5(3)

  5. A contractor estimates total job cost at $80,000 and applies a 25% markup on cost. What is the bid price?

    Answer: $100,000

    Markup is applied to cost: price = cost x (1 + markup) = $80,000 x 1.25 = $100,000. $106,667 is what you get by treating 25% as a margin on selling price ($80,000 / 0.75). $20,000 is only the markup amount, not the price. Always check whether a percentage is a markup on cost or a margin on price.

    Reference: NASCLA Contractor's Guide to Business, Law and Project Management (Utah 4th ed.), Estimating and Bidding chapter: markup vs. margin

  6. A contractor has cash of $60,000, accounts receivable of $140,000, inventory of $80,000 and prepaid expenses of $20,000. Current liabilities are $160,000. What is the quick (acid-test) ratio?

    Answer: 1.25

    Quick ratio = (cash + marketable securities + receivables) / current liabilities = ($60,000 + $140,000) / $160,000 = 1.25. Inventory and prepaids are excluded because they cannot quickly be turned into cash. Including inventory gives 1.75 ($280,000 / $160,000), and including all current assets gives 1.88 ($300,000 / $160,000). 0.38 counts cash only.

    Reference: NASCLA Contractor's Guide to Business, Law and Project Management (Utah 4th ed.), Financial Management chapter: financial ratios (quick ratio)

  7. A non-exempt carpenter earns $28.00 per hour and works 47 hours in one workweek. Under the FLSA, what are the carpenter's gross wages for the week?

    Answer: $1,414

    The FLSA requires time-and-a-half for hours over 40 in a workweek. Regular pay = 40 x $28 = $1,120. Overtime rate = $28 x 1.5 = $42; overtime pay = 7 x $42 = $294. Total = $1,120 + $294 = $1,414. $1,316 pays all hours at straight time, $1,512 pays the 7 overtime hours at double time, and $1,974 pays every hour at the overtime rate.

    Reference: Fair Labor Standards Act, 29 U.S.C. 207, 29 U.S.C. 207(a)(1)

  8. A contractor has 12 employees who each earned more than $7,000 this year. The contractor paid Utah unemployment contributions on time and qualifies for the full 5.4% FUTA credit. What is the total net FUTA tax for the year?

    Answer: $504

    FUTA is 6.0% on the first $7,000 of each employee's wages, less a credit of up to 5.4% for state unemployment contributions, for a net rate of 0.6%. Per employee: $7,000 x 0.006 = $42. For 12 employees: 12 x $42 = $504. $5,040 applies the full 6.0% with no credit, and $42 is the amount for only one employee. FUTA is paid by the employer only; it is never withheld from wages.

    Reference: IRS Publication 15 (2026), (Circular E), Employer's Tax Guide, Section 14 (Federal Unemployment (FUTA) Tax)

  9. In the same schedule, what is the total float of activity E? Activities: A (4 days, starts the project); B (6 days, after A); C (3 days, after A); D (5 days, after B); E (7 days, after C); F (2 days, after both D and E).

    Answer: 1 day

    Forward pass: A 0-4, C 4-7, E 7-14, B 4-10, D 10-15. F cannot start until both D and E finish, so it starts at 15 and ends at 17. Backward pass: F's late start is 15, so E's late finish is 15 and its late start is 15 - 7 = 8. Total float = late start - early start = 8 - 7 = 1 day. That equals the 17-day critical path minus the 16-day path through E. Activities on the critical path (A, B, D, F) have 0 float.

    Reference: NASCLA Contractor's Guide to Business, Law and Project Management (Utah 4th ed.), Project Management chapter: CPM forward/backward pass and float

  10. On a bonded project, the contractor defaults partway through the job. Which bond protects the owner by guaranteeing the work will be completed according to the contract?

    Answer: Performance bond

    A performance bond guarantees the owner that the contract will be performed. If the contractor defaults, the surety must arrange completion or compensate the owner, up to the bond amount. A payment bond protects subcontractors and suppliers who are not paid, and a bid bond applies only to the bidding stage.

    Reference: NASCLA Contractor's Guide to Business, Law and Project Management (Utah 4th ed.), Risk Management chapter: surety bonds (performance bonds)

Sources

Questions last verified September 30, 2026. Licensing rules change. Always confirm current requirements with the licensing agency before you apply.