CONTRACTORS LICENSE SURETY BOND COMMERCIAL SPECIALTY ARIZONA
Contractors License Surety Bond Commercial Speciality Arizona
Contractors License Surety Bond Commercial Speciality Arizona – Commercial Specialty Construction Contractors are required to be licensed and post a Commercial Specialty Contractors License Surety Bond in order to protect their license. Surety Bond amounts are based on the gross volume of work contemplated by the licensee, within the State of Arizona, for the ensuing fiscal year. The next surety bond amounts are available for Arizona Commercial Specialty Contractors License Bonds.
Gross Volume (per License) Surety Bond Amount
$0 – $150,000 $2,500.00
$150,000 – $500,000 $5,000.00
$500,000 – $1 Million $10,000.00
$1 Million – $5 Million $20,000.00
$5 Million – $10 Million $32,500.00
$10 Million + $45,000.00
WHY IS THIS BOND NECESSARY?
By posting the contractor license bond, contractors agree to follow all the laws and regulations stated within the Arizona Revised Statutes. If any of the following acts are committed, a claim can be made on the bond and the contractor’s license can be canceled or suspended :
abandoning a contract after submitting a bid
failing to pay taxes
acting in a fraudulent way resulting in an injury of another
aiding someone else to evade/violate specific regulations
failing to abide by all safety and labor laws
advertising in a false or misleading way
HOW TO BECOME A CONTRACTOR IN ARIZONA
The way Arizona differentiates between commercial and residential contractor licenses means the state has previously maintained as many as 238 different license classifications. Adjustments to regulations in 2014 reduced this number by consolidating many commercial and residential licenses into a dual license.
Once the applicant has been bonded, then person interested can apply for a contractor license with the state. The following must be provided when filing the application.
correct license classification reflecting 2014 changes
passing score on the correct trade exam
all fees paid in the correct amount
necessary background checks