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Arizona contractors are licensed by the state Registrar of Contractors. They also need surety bonds�keep reading to find out how to get licensed and bonded.
Getting licensed
Arizona contractors are licensed by classification, which means they’re licensed to perform specific work. There are numerous classifications, all requiring varying years of experience and different combinations of Arizona’s four contractor exams, which can be taken online. Regardless of the applicant’s type of business (sole proprietorship, LLC, corporation, etc.), a qualifying party must be designated on the application. The qualifying party needs to pass the exam(s) and have the required number of years of experience.
Listed is some of the information the Registrar of Contractors requests from contractor applicants:
- Passed exam results
- Completed project verification forms
- Proof of payment for background checks for applicant and qualifying party
- Completed experience verification forms
- Fees based on the classification being applied for
- Completed application form
- License surety bond
Arizona contractors’ licenses are good for two years. Applications and all required documentation and fees can be mailed to the Registrar:
Registrar of Contractors P.O. Box 6748 Phoenix, AZ 85005-6748
They can also be delivered in person here:
1700 W. Washington St., Suite 105 Phoenix, AZ 85007-2812
Arizona contractors’ license surety bonds
Arizona contractors need to get a continuous license surety bond, which means the bond is valid as long as the premium is being paid. Their bond amount depends on both the type of construction work they’ll be licensed to perform, and on the business’s anticipated annual gross volume (abbreviated AGV below).
Residential general contractors
• AGV less than $750,000—$9,000 bond
• $750,000 or more—$15,000 bond
Residential specialty contractors
• AGV less than $375,000—$4,250 bond
• $375,000 or more—$7,500 bond
Commercial general contractors (including general engineering contractors)
• AGV $150,000 or less—$5,000 bond
• More than $150,000 and less than $500,000—$15,000 bond
• More than $500,000 and less than $1,000,000—$25,000 bond
• More than $1,000,000 and less than $5,000,000—$50,000 bond
• More than $5,000,000 and less than $10,000,000—$75,000 bond
• More than $10,000,000—$100,000 bond
Commercial speciality contractors
•AGV $150,000 or less—$2,500 bond
• More than $150,000 and less than $500,000—$7,000 bond
• More than $500,000 and less than $1,000,000—$17,500 bond
• More than $1,000,000 and less than $5,000,000—$25,000 bond
• More than $5,000,000 and less than $10,000,000—$37,500 bond
• More than $10,000,000—$50,000 bond
If a contractor has a dual license, their bond amount is found by adding the commercial and residential bond amounts.�Arizona residential contractors need another surety bond in addition to the license bond. They need to pay $200,000 into the Registrar’s Residential Recovery Fund, either in cash or with a surety bond. The Fund is an additional layer of financial protection for consumers, serving a similar purpose to the license bond.
Ready to become an Arizona contractor? Get started by getting bonded with Single Source Insurance!