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Contractors License Bond Arizona – Who Requires the Contractor License or Permit Bond and Why Is It Needed?

Contractor license bonds are mandatory by the Arizona Registrar of Contractors (AZROC). The amount of the surety bond varies from $2,500 to $100,000 based on the annual dollar volume of work and the contractor classification. A Taxpayer Bonds for Contractors must also be posted by certain contractors.


What Does the Bond Protect Against?

The surety bond is furnished for the benefit of and subject to claims by the registrar of contractors for failure to pay any sum prescribed by Arizona Revised Statutes ARS section 32-1152. This bond is also for the benefit of claims by a licensee or a lessee, owner or co-owner of nonresidential real property, who has a direct contract with the licensee whose bond the claim is made and who is damaged by the failure of the licensee to build or improve a structure or other appurtenance on the real property at the time the work was performed in a manner complying with all applicable building or construction codes and in accordance with the standards of construction work approved by the state registrar.


What is Needed to Obtain My License or Registration (Contractors License Bond Arizona)?

Arizona contractors have to file a Contractor’s Bond in the amount needed for the license classification and expected annual gross volume. The bond may be in the form of a surety bond or a cash bond. New applications for any license classification require the applicant to calculate his anticipated gross volume of work within the State of Arizona for the remainder of the present fiscal year.


The following is a general analysis of the contractor licensing requirements by the Arizona Registrar of Contractors:


  • Identify a Qualifying Party who meets the license classification requirements for your license classification

  • The Applicant and Qualifying Party must submit to background checks as mandated by AZ ROC

  • Form a Legal Entity or register your legal entity at the Arizona Corporation Commission

  • Complete and Submit Project Verification and Experience Forms with application

  • Pay required state fees and assessments with your application

  • Provide Government Issued Identification with your application

  • Complete and mail or deliver application and related documentation to the Arizona Registrar of Contractors.

contractors License bond arizona