Arizona Contractor License Bond Contractor License Surety Bonds

WHAT IS AN ARIZONA CONTRACTOR LICENSE SURETY BOND?

The Arizona Registrar of Contractors requires Contractor License Surety Bonds for contractors operating in residential and commercial sectors of the state. These surety bonds ensure the contractor’s adherence to all laws and regulations, including Arizona state, county and city building codes, as well as the regulations set by the Arizona Revised Statutes. They protect against a contractor’s abandonment of binding contractual agreements and potential acts of fraud and misrepresentation. Arizona Contractor License Surety Bonds ensure the prompt and full payment of all applicable taxes and fees, as well as their provision of ethical, honest and safe service. If any of the conditions are violated, a claim could be placed against the bond.

HOW IS THE AMOUNT FOR ARIZONA CONTRACTOR LICENSE SURETY BONDS CALCULATED?

Arizona Contractor License Surety Bonds vary in amount depending on the license classification and volume of work within the state of Arizona. Below is a list of license types with gross volume and adequate bond amounts that comply with the revisions from July 1, 2014:

LICENSE TYPE CONTEMPLATED GROSS VOLUME (PER LICENSE) BOND AMOUNT
Residential General Contractors Less than $750,000 $9,000
$750,000 or more $15,000
Residential Specialty Contractors Less than $375,000 $4,250
$375,000 or more $7,500
Commercial General Contractors (Includes General Engineering Contractors) $150,000 or less $5,000
In excess of $150,000 but not more than $500,000 $15,000
In excess of $500,000 but not more than one million $25,000
In excess of one million but not more than five million $50,000
In excess of five million but not more than ten million $75,000
Over ten million $100,000
Commercial Specialty Contractors $150,000 or less $2,500
In excess of $150,000 but not more than $500,000 $7,000
In excess of $500,000 but not more than one million $17,500
In excess of one million but not more than five million $25,000
In excess of five million but not more than ten million $37,500
Over ten million $50,000

Note: Dual license bond amounts are calculated by combining the amount required for commercial and residential license types. If you have specific questions on amounts, feel free to contact one of our Contractor License Surety Bond experts!

WHAT IS THE PENALTY FOR CONTRACTING WITHOUT A LICENSE IN ARIZONA?

Contractors who do not maintain a valid Arizona Contractor License face harsh penalties. It is a Class 1 Misdemeanor to act/advise as a contractor or perform a contractor service for compensation if unlicensed. First time offenders can face fines and possible jail time.

WHAT IS REQUIRED TO APPLY FOR AN ARIZONA CONTRACTOR LICENSE?

In addition to this surety bond, contractors need to provide the following items to the Arizona Registrar of Contractors to complete their submission:

  • Government Issued ID
  • Contractor Examination Results
  • The Qualifying Party must pass the required examinations by at least 70% and submit the exam results, complete the AZ BME Business Management Exam and, unless eligible for a waiver, must also complete a specific trade exam.
  • Background Checks
  • Papers for Legal Entity
  • LLC’s and corporations are required to register with the Arizona Corporation Commission. Partnerships are required to register with the Arizona Secretary of State.
  • Fees (See Fee Schedule below)

NEW LICENSE APPLICATION

CLASSIFICATION APPLICATION FEE LICENSE FEE RECOVERY FUND ASSESMENT TOTAL
General Commercial (A, B-1, B-2) $200 $580 $0 $780
Specialty Commercial (C) $100 $480 $0 $580
General Residential (B, B-3, B-4, B-5, B-6, B-10) $180 $320 $370 $870
Specialty Residential (R) $80 $270 $370 $720
General Dual (KA, KB-1, KB-2) $200 $480 $370 $1,050
Specialty Dual (CR) $100 $380 $370 $850

Completed applications can be mailed to the Registrar of Contractors at PO Box 6748, Phoenix, AZ 85005 or hand-delivered to 1700 W. Washington Street, Suite 105, Phoenix, AZ 85007.

CAN I GET AN ARIZONA CONTRACTOR LICENSE SURETY BOND WITH BAD CREDIT?

Pacific Surety offers a wide-range of approvals, regardless of credit, for Arizona Contractor License Surety Bonds. Our strong surety relationships help get your price down as low as possible each year. There is no need to shop your rate – we do that for you! If you have any specific questions, feel free to contact our knowledgeable underwriting staff.

HOW MUCH DOES A ARIZONA CONTRACTOR LICENSE SURETY BOND COST?

Arizona Contractor License Surety Bonds are subject to underwriting and the price you will pay depends on a review of your personal credit report (soft check). Pacific Surety is proud to offer rates with qualifying credit starting as low as $75 annually.

It typically takes just a few hours from quote to issuance of the bond, and we have the ability to beat any competitors pricing. If you have any specific questions, feel free to contact our knowledgeable underwriting staff.

HOW DO I GET AN ARIZONA CONTRACTOR LICENSE SURETY BOND?

The first step is to complete our quick online application for your free bond quote. Submission takes only five minutes, and our underwriting staff will be in contact with you within a couple of hours with pricing.

After you receive approval, you must sign an indemnity agreement with the surety and provide payment for your bond premium. In most cases, we can issue bonds the same day we receive your signed documents and payment.

Surety Bond Name

Bond Limit

Contractor License Surety Bonds – Arizona Contractor License Bond