Homeowners Guide to Hiring the RIGHT Contractor in Utah - Jim Savage Construction

A Homeowners Guide to Hiring the RIGHT Contractor in Utah

August 20, 2025

The First Rule of Construction: Why a Licensed Utah Contractor is Your Only Choice

In the bustling real estate markets of St. George and Hurricane, a thriving construction industry means you have many choices when it comes to hiring a general contractor. But with so many options, how do you separate the professionals from the amateurs? The single most critical step you can take to protect your home and your investment is to ensure your contractor is properly licensed by the state of Utah.

At Jim Savage Construction, we've operated as a licensed contractor for over 40 years, and we believe it's the first and most important sign of a professional's commitment to quality, safety, and legality. The license isn't just a piece of paper; it’s a rigorous legal and professional requirement that provides a critical layer of security for homeowners throughout Washington County.

What a Utah Contractor License Really Means

In Utah, the authority to license contractors falls to the Utah Division of Occupational and Professional Licensing (DOPL). When a contractor holds a license—specifically a B100 General Contractor License or an R100 Residential and Small Commercial Contractor License—it means they have met strict state-mandated qualifications.

Experience and Knowledge: To obtain a B100 license, a contractor must document a minimum of two years (4,000 hours) of paid work experience in the construction industry, with at least one of those years in a supervisory or managerial position. This isn't just about swinging a hammer; it's about a deep, hands-on understanding of the entire construction process.
Passing the Test: In addition to experience, a licensed contractor must pass the mandatory Utah Business & Law Exam. This open-book test is a comprehensive exam on critical topics, including business management, labor laws, and lien laws. This ensures your contractor isn't just skilled in their trade, but is also competent in the legal and financial aspects of running a business.
Pre-Licensure Education: Utah law requires all general contractors to complete a 30-hour pre-licensure course. These courses cover everything from construction law to basic business practices, providing a foundational understanding of the industry's complex regulations.

Beyond the License: The Non-Negotiable Protection of Insurance

Even with a license, a reputable contractor must carry the right insurance to protect you, the homeowner, from financial risk. Any professional you hire should have two critical policies:

General Liability Insurance: This is your primary protection against property damage. If a contractor or their crew accidentally damages your home during the project—whether it's a cracked window, a damaged floor, or a major structural issue—their general liability insurance covers the cost of repairs. A contractor with this insurance shows they are prepared to take responsibility for their work. The state of Utah requires a minimum of $100,000 in coverage per incident.
Workers' Compensation Insurance: If a worker is injured on your property, a valid workers' compensation policy is the only thing that protects you from being held financially responsible for their medical bills and lost wages. This is a vital safeguard that shields you from the immense legal and financial burden of an on-site accident.

Final Takeaway for Your Utah Project

The single best way to ensure your project is a success is to hire a licensed and insured contractor. As a homeowner, you can easily verify a contractor's credentials on the official Utah DOPL website. Don't take a contractor's word for it; this simple verification process is a small step that provides massive peace of mind. At Jim Savage Construction, we believe in full transparency and are happy to provide you with all our licensing and insurance information. We've built our reputation on a foundation of integrity and professionalism, and we wouldn't have it any other way.

Your Project’s Blueprint: Navigating the Utah Construction Contract

Think of a construction contract as the blueprint for your project's success. It’s a comprehensive legal document that outlines every detail of your build or renovation, from the project scope to the payment schedule. While it may seem daunting, a well-written contract is the most powerful tool a homeowner has to ensure a smooth process and a successful outcome.

At Jim Savage Construction, we believe in complete transparency. Our contracts are designed to be clear, fair, and easy to understand. Here are the key components of a robust Utah construction contract and why each one is vital to your project's security.

1. The Scope of Work: Defining the Dream

This is the most important section of the contract. It describes, in meticulous detail, everything the general contractor is responsible for. For a custom home build in St. George, this would include:

The blueprint and design specifications.
Site preparation and grading.
The specific materials to be used (e.g., quartz countertops, hardwood flooring).
Detailed lists of fixtures (plumbing, electrical, lighting).
Final finishes, including paint colors and cabinetry.

A good contract leaves no room for ambiguity. If something isn't in the scope of work, it's not the contractor’s responsibility. This protects both parties by ensuring everyone is on the same page from day one.

2. The Payment Schedule: Milestones and Trust

A well-structured payment schedule is tied directly to the progress of your project. Instead of paying a large lump sum upfront, you pay in installments as specific milestones are met. A typical payment schedule for a Utah home construction project might look like this:

Initial Deposit: Covers planning, permits, and initial materials.
Foundation Completion: First major payment after the concrete work is done.
Framing and Sheathing: Paid upon completion of the structure.
Drywall and Rough-Ins: Paid after plumbing, electrical, and HVAC are installed.
Final Completion: The last payment is made after the final walkthrough and your complete satisfaction.

This system protects you by ensuring the contractor is paid for work that has actually been completed, aligning their financial incentives with your project's progress.

3. Change Orders: Flexibility with a Plan

In almost every construction project, a change will be made. You may decide to upgrade your cabinets or add a window. A solid contract has a clear change order process. A change order is a written document that details:

The requested change.
Any adjustments to the project timeline.
The change in cost.

Both you and the contractor must sign the change order before any new work begins. This prevents a contractor from adding surprise charges to your final bill and ensures you have full control over the project’s budget.

4. Dispute Resolution: Planning for the Unexpected

While a good contractor will work to avoid disputes, a well-written contract includes a section on how to handle them. This section may outline a process for mediation or arbitration, which can be a more efficient and less expensive way to resolve issues than going to court.

The Bottom Line

Before you sign anything, read your contract carefully and ask questions. A trustworthy general contractor will be happy to walk you through every clause and explain every detail. At Jim Savage Construction, our contract is a reflection of our commitment to integrity and transparency. It’s designed not just to protect our business, but to provide you with confidence and peace of mind from start to finish.

The Utah Lien Act: Your Guide to Protecting Your Home & Contractor

For a homeowner, the term "mechanics lien" can sound intimidating. However, in Utah, the Construction Lien Act is a vital legal tool that protects both contractors and homeowners. By understanding how the law works, you can ensure your project is financially sound and free from legal complications.

At Jim Savage Construction, we believe that an informed homeowner is a confident one. We've operated with a deep respect for Utah's lien laws for over 40 years, and we're committed to ensuring every client understands their rights and obligations.

What is a Utah Construction Lien?

In simple terms, a construction lien is a legal claim placed on a property by a contractor, subcontractor, or material supplier who has not been paid for their work. This claim serves as a security interest, giving the professional a legal right to seek payment from the property itself. The law protects them by ensuring they don't go unpaid for services and materials that have improved the value of your property.

How the Lien Law Works in Utah: A Step-by-Step Breakdown

The process for a contractor to file a lien in Utah is highly specific and governed by the Utah Construction Lien Act.

Preliminary Notice: Before a lien can be filed, a contractor or subcontractor must first file a "preliminary notice" with the State Construction Registry (SCR). This must be done within a certain timeframe (usually 20 days) after beginning work on the project. This notice serves as a warning to the homeowner that this specific company is working on the project and could potentially file a lien if they are not paid.
Filing the Lien: If a contractor remains unpaid, they can file a lien on the property with the County Recorder's Office. This lien must be filed within a specific window of time, usually 90 days after the final completion of the work or a Notice of Completion is filed.
Enforcement: If the lien still isn't paid, the contractor can then file a lawsuit to enforce the lien, which could ultimately lead to the forced sale of the property.

How to Protect Yourself: Best Practices for Homeowners

While the law protects contractors, it also gives homeowners a clear path to protect themselves. This is especially crucial on projects where a general contractor hires multiple subcontractors and suppliers.

Work with a Licensed General Contractor: A licensed and bonded general contractor, like Jim Savage Construction, is legally responsible for ensuring that all subcontractors and suppliers on your project are paid. They act as your single point of contact and manage all financial aspects of the job.
Get Lien Waivers: A lien waiver is a document signed by a contractor or subcontractor that relinquishes their right to file a lien for a specific payment. As a best practice, always request a signed lien waiver from the general contractor and any major subcontractors with every payment you make.
Use a Written Contract and Payment Schedule: As discussed in our previous blog, a clear contract is your best defense. A detailed payment schedule ensures that you only pay for work that has been completed, giving you leverage to withhold payment if you suspect a subcontractor has not been paid.
The Residence Lien Restriction and Lien Recovery Fund Act: This Utah Act provides additional protections for homeowners who have a written contract with a licensed contractor and have paid that contractor in full. In these cases, you can apply for a "Certificate of Compliance," which can stop a lien from being enforced against your home.

Your Path to a Secure Project

Understanding Utah's lien laws is a key part of being an informed homeowner. By hiring a reputable, licensed general contractor who manages all payments and provides the necessary lien waivers, you can ensure your project is not only beautiful but also financially secure. At Jim Savage Construction, we prioritize transparency, giving you the peace of mind that comes from knowing every detail is handled correctly.