Arizona Contractor’s License Bond

The Arizona Contractor’s License Bond is a type of surety bond required by the Registrar of Contractors of the State of Arizona. You need to be a licensed contractor in Arizona whenever you perform construction work that is valued at more than $1,000. This includes any work that requires a building permit, as well as repairs, alterations, and additions.

There are a few exceptions to the licensing requirement. For example, you do not need a license to perform work on your own home, as long as you are not doing the work for hire. You also do not need a license for minor repairs and maintenance, such as painting or hanging pictures.

There are two types of Commercial Contractors License Surety Bonds; 1. Commercial General Contractors and 2. Commercial Specialty Contractors.   The bond amount is determined by the the type of license needed and the annual revenue from work performed.

Current and new surety bond requirements for Commercial General Contractors are as follows:

• Less Than $150k – $5,000
• $150k to $500k –  $15,000
• $500k to $1mm –  $25,000
• $1mm to $5mm – $50,000
• $5mm to $10mm – $75,000
• $10mm and above – $100,000

Current and new surety bond requirements for Commercial Specialty Contractors are as follows:

• Less Than $150k – $2,500
• $150k to $500k –  $7,000
• $500k to $1mm –  $17,500
• $1mm to $5mm –  $25,000
• $5mm to $10mm – $37,500
• $10mm and above – $50,000

The cost of the surety bond is usually between .75% and 3% of the bond amount, subject to a minimum premium and fees of $150. Surety1 will shop its many markets to procure the right price at the right terms.

How to Get an Arizona Contractor’s License Bond

At Surety1.com we make it easy to obtain this surety bond. Our simple, three step process is:

1. Complete the easy to navigate and secure online application. ¹
2. Review the free, no obligation quote from one of Surety1’s professional surety bond agents, usually within one business day.
3. Sign some paperwork and pay the bond premium

Once these steps have been completed, the Arizona Contractor’s License Bond will be shipped to the bond principal (applicant).
^{1-The name of the applicant on the surety bond application must match exactly the full legal business name of applicant for the license.} 

Surety1.com is a service of AssuredPartners one of the largest and fastest growing insurance agencies in the nation. Representing over a dozen surety bond companies, Surety1.com is the premier online provider of surety bonds nationwide since 2003.

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How to Get a Contractor’s License

Step-by-step guide on obtaining a contractor’s license in Arizona:

1. Identify a Qualifying Party. A Qualifying Party is a person who meets the minimum requirements for a contractor’s license, including education, experience, and trade knowledge. The Qualifying Party can be the owner of the business, or they can be an employee.
2. Pass the exams. The Arizona Contractor Statutes and Rules Exam is a general exam that covers state and federal laws and the management of construction projects, business, and financial management. The Trade Exam is a specific exam that covers the trade that you will be licensed in. You can register for the exams online at the PSI Services website.
3. Submit to background checks. The Arizona Registrar of Contractors (ROC) will conduct a background check on all Qualifying Parties. The background check will include a criminal history check, a credit check, and a business license check.
4. Form a legal entity. If you are not already a sole proprietor, LLC, or corporation, you will need to form a legal entity before you can apply for a contractor’s license. You can register your business with the Arizona Corporation Commission.
5. Obtain a Arizona Contractor’s License Bond. A contractor’s bond is a financial guarantee that protects consumers from financial losses if a contractor fails to complete a project or fails to meet the terms of a contract. You can purchase a contractor’s bond by clicking here.

Submit your application. You can submit your application for a contractor’s license online or by mail. The application fee is $200. You will need to submit the following documents with your application:

• Proof of passing the exams
• Proof of a clean criminal background record
• Proof of forming a legal entity
• Proof of obtaining an Arizona Contractor’s License Bond
• Proof of paying the application fee

Once you have submitted your application, the ROC will review it and process it. If your application is approved, you will receive your contractor’s license in the mail.

CLICK HERE for more forms and instructions on bonding from the Registrar of Contractors

Click Here to Visit our Performance and Payment Bond Page