License Required. Anybody an HOA hires for any construction work must be a licensed contractor, with limited exceptions.
Exceptions. A few exceptions are noteworthy for HOAs.
- Projects costing under $3,000 total in labor and goods are exempt (but if over $1,000, the person must report to the Division and have liability insurance, and workers comp if the person has an employee), except the following must be done by a licensed professional:
- Plumbing, electrical, gas appliance or combustion system (except delivery person of a replacement gas appliance if a shutoff valve is present at appliance), water-based fire protection system, alarm, HVAC system, and radon mitigation system.
- A license is not required for repair or replacement of the following, provided that no modification is made to existing culinary water, soil, waste, or vent piping or to a gas appliance or combustion system: a dishwasher, fridge, stove, range, washer, dryer, and the following if the cost does not exceed $300 in total value, including labor and materials: tub or shower trim or valve, toilet flush valve, toilet removal and reset, garbage disposal, sink P-trap, faucet rebuild and replacement, and supply line replacement after the fixture valve. (See 58-55-305(1)(k) and Administrative Rule R156-55c-102(2)).
- A person regularly employed for wages by the property owner for the purpose of maintaining the property.
- A sole owner of property who builds one residential structure per year and up to three per five years on the owner's property for the owner's own noncommercial, nonpublic use.
See Utah Code § 58-55-305(1), (1)(h)(i) and (1)(h)(ii)(H).
Construction Definitions. Construction work is engaging in acts or practices included within the practice of construction trades. A construction trade is any trade or occupation involving construction, alteration, remodeling, repairing, wrecking or demolition, addition to, or improvement of any building, road, structure, excavation or other project, development, or improvement to other than personal property. See Utah Code 58-55-102(11).
Illegality. It is illegal to hire a person who is not licensed to perform construction work on a project, unless the person is not required to be licensed. See Utah Code § 58-55-501(3).
Statutes and Cases:
(For reference: 57-8 is the Condo Act, 57-8a is the Community Association Act, 16-6a is the Nonprofit Act)