General Contracting Contractors in Orem, Utah
Avg. Hourly Wage
$51.84/hr
Bureau of Labor Statistics
Avg. Annual Wage
$107,827/yr
Bureau of Labor Statistics
Licensed Establishments
1,354
U.S. Census Bureau
Peak Season
April through September - driven by Utah's harsh winters and homeowner preference for warm weather construction
Estimate
Avg. Response Time
2-5 business days for initial quotes, 1-2 weeks for detailed proposals during peak season
Estimate
Common Job Costs
| Service | Cost Range |
|---|---|
| Home addition (500-1000 sq ft) | $75,000 – $150,000 |
| Kitchen remodel (mid-range) | $25,000 – $65,000 |
| Bathroom remodel (full) | $15,000 – $40,000 |
| Basement finish (1000 sq ft) | $20,000 – $45,000 |
| Deck construction (300 sq ft composite) | $8,000 – $18,000 |
| Roof replacement (asphalt shingles) | $12,000 – $25,000 |
Licensing Requirements
Licensing Requirements
Utah requires Contractor License through Division of Occupational and Professional Licensing (DOPL). Must pass PSI exam covering business law, construction standards, and safety. Requires 4 years experience or combination of education/experience. Renewed every 2 years with 16 hours continuing education. Bond required: $20,000 for projects over $3,000.
Permit Requirements
Building permits required through Orem Building Department for structural work, additions, electrical, plumbing, HVAC. Fees range $100-$2,000+ based on project value. Plan review required for major projects. Mechanical, electrical, plumbing permits require licensed subcontractors.
Inspection Schedule
Typical sequence: foundation/footing, framing, electrical rough-in, plumbing rough-in, HVAC rough-in, insulation, drywall, final inspection. 24-48 hour notice required for inspections. Re-inspection fees apply for failures.
Insurance Minimums
General liability minimum $300,000 per occurrence, $600,000 aggregate. Workers compensation required if employees. Many clients require $1M+ coverage. Bonding requirements: $20,000 for licensed contractors on projects over $3,000.
How to Get Licensed
- 1
Meet Experience Requirements
Document 4 years construction experience OR combination of education and experience. Associate degree counts as 2 years experience. Submit employer verification forms.
- 2
Complete Pre-License Education
Take approved pre-license course covering Utah construction law, business practices, and safety. Course must be from DOPL-approved provider.
- 3
Pass PSI Examination
Schedule and pass contractor exam through PSI. Covers business law, construction standards, safety regulations, and Utah-specific requirements. 75% passing score required.
- 4
Obtain Surety Bond
Purchase $20,000 surety bond through approved bonding company. Bond protects consumers from contractor default or poor workmanship.
- 5
Submit License Application
Complete DOPL application with experience documentation, exam results, bond information, and $190 license fee. Include background check authorization.
- 6
Maintain License
Renew every 2 years with 16 hours continuing education and $140 renewal fee. Keep bond and insurance current throughout license period.
About This Market
Orem's general contracting market runs hot with steady residential growth and established neighborhoods driving remodel demand. You've got strong competition from 1,354 licensed contractors statewide, but Utah County's population boom keeps work flowing. Kitchen and bathroom remodels dominate the residential side, while basement finishing stays busy year-round thanks to Utah's basement culture. Material costs hit hard here - lumber, concrete, and steel fluctuate more than most markets, and smart contractors build escalation clauses into longer projects.
To work this market, get your Utah contractor license through DOPL first - no shortcuts. The PSI exam trips up plenty of experienced guys who think they can wing it. Orem's building department runs tight inspections, so know your codes and don't cut corners on permits. Winter months slow outdoor work to a crawl, so line up interior projects for November through March. Local suppliers like Geneva Rock and Sunroc Materials control concrete pricing, so build those relationships early. Most successful contractors here specialize - pick your lane between new construction, remodels, or commercial work.
Data Sources:
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