Utah General Contractors - Business and Law Practice Exam

If a qualifying person leaves a company, for how long will the license remain active?

1. 30 days

2. 60 days

3. 90 days

4. 120 days

The correct answer is: 60 days

When a qualifying person, such as a licensed individual who meets specific requirements for a contracting business, leaves a company in Utah, the contractor's license will remain active for a duration of 60 days. This provision allows the company some time to replace the qualifying person without immediately jeopardizing the status of the license. During this 60-day window, the company is expected to either designate a new qualifying individual to take over or ensure that any necessary steps are taken to maintain compliance with state licensing requirements. If no action is taken to replace the qualifying person within this period, the license may become inactive, which can lead to operational challenges for the business and could affect ongoing contracts and projects. Understanding this 60-day timeframe is crucial for contractors to ensure they manage their licensing and compliance effectively after a key personnel change.