A person an HOA hires for construction work must be a licensed contractor, with limited exceptions.
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).
License Required. A license is required for all construction work, with two exceptions that 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:
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(For reference: 57-8 is the Condo Act, 57-8a is the Community Association Act, 16-6a is the Nonprofit Act)