General Contractor Licensing in Arizona

Arizona General Contractor License Verification

In Arizona, individuals and businesses intending to perform construction, alteration, repair, or demolition work exceeding $1,000 in value, or any project requiring a local building permit, must obtain a general contractor license. The governing body responsible for licensing and regulating contractors in the state is the Arizona Registrar of Contractors (AZ ROC). To qualify for a license, applicants must be at least 18 years old and designate a "qualifying party" who possesses a minimum of four years of verifiable experience in the field. This qualifying party must successfully pass two examinations: the AZ Statutes and Rules Training Course and Exam (SRE), and a trade-specific exam, both with a score of 70% or higher. Corporations and Limited Liability Companies must be registered with the Arizona Corporation Commission and be in good standing before applying. A background check is also a mandatory requirement for all individuals listed on the license application. Licenses are typically issued for a two-year period and require renewal to remain active. Arizona offers various license classifications, including General Residential, General Commercial (B-1 for projects of any size, B-2 for projects up to $750,000), and Dual licenses covering both residential and commercial work.

Insurance and Bonding Mandates

A crucial component of Arizona's contractor compliance is the surety bond requirement. All general and specialty contractors, whether commercial or residential, must obtain and maintain a continuous surety bond with the AZ ROC. The bond amount varies significantly based on the license classification and the contractor's anticipated annual gross volume of work. For instance, residential general contractors typically require a bond ranging from $9,000 to $15,000, while commercial general contractors may need a bond from $5,000 to $100,000. For businesses with employees, Workers' Compensation insurance is mandatory. While general liability insurance is not explicitly mandated for licensure by the AZ ROC, it is highly recommended to protect against claims of bodily injury or property damage. Many project owners and clients will require general liability coverage, often with minimum limits of $1,000,000 per occurrence and $2,000,000 in aggregate.

Permitting and Local Regulations

General contractors in Arizona must be aware of local permitting requirements, as these are handled by individual city and county Building Departments. A construction permit is necessary for any project where labor and materials exceed $1,000, or if the work otherwise necessitates a permit, regardless of the cost. Obtaining proper permits and undergoing inspections is vital to ensure compliance with building codes, which are designed to safeguard against structural failure, fire hazards, and health risks. Permits also create a permanent record of the work performed, which is essential, particularly when selling a property, as Arizona law requires full disclosure of all remodeling work and whether permits were obtained.

Official Arizona Resources

For detailed information and specific application forms, general contractors should consult the following official resources:

• Arizona Registrar of Contractors (AZ ROC)
• Arizona Revised Statutes, Title 32, Chapter 10 (Registrar of Contractors)
• Arizona Administrative Code
• PSI Exams (for scheduling examinations)
• Arizona Building Officials (for local permit information)

  Directory of General Contractor contractors serving Arizona